Very depressing news.1 in 2 new graduates are jobless or underemployed
WASHINGTON (AP) — The college class of 2012 is in for a rude welcome to the world of work.
A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don't fully use their skills and knowledge.
Young adults with bachelor's degrees are increasingly scraping by in lower-wage jobs — waiter or waitress, bartender, retail clerk or receptionist, for example — and that's confounding their hopes a degree would pay off despite higher tuition and mounting student loans.
Opportunities for college graduates vary widely.
While there's strong demand in science, education and health fields, arts and humanities flounder. Median wages for those with bachelor's degrees are down from 2000, hit by technological changes that are eliminating midlevel jobs such as bank tellers. Most future job openings are projected to be in lower-skilled positions such as home health aides, who can provide personalized attention as the U.S. population ages.
From what I gather the causes for grad unemployment are:
- Old people are not retiring fast enough to have vacant job openings
- Grads are getting degrees that have no use in the job market (E.g. degree in creative writing)
- Demand is outstripping Supply in certain areas of the job market
The few solutions I can think of are:
- Force early retirement from old people to open job openings
- De-emphasis or eliminate non-performing degrees (E.g Arts and Music)
- Offer incentives (scholarships) for degrees where the job market is needed
I doubt any of my suggestions will happen.
Instead the Baby Boomers will have to die off from old age before any recovery will occur.
By that time the College Grads will be in their late 30s or 40s with a large debt and no money.