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In This Recovery, a College Education Backfires
The New York Times ^ | March 14, 2004 | LOUIS UCHITELLE

Posted on 03/14/2004 3:47:35 AM PST by sarcasm

ROBERT B. REICH called them "symbolic analysts." They were the college-educated workers supposedly insulated from the global pressures that condemned others with less schooling to job insecurity and layoffs. "Symbolic analysts are in ever greater demand in a world market that places an increasing value on identifying and solving problems," Mr. Reich wrote in 1991.

The message: Get a college education; earn a bachelor's degree, or more. That is your immunization against the outsourcing, offshoring and downsizing that frighten so many workers today. The Clinton administration, in which Mr. Reich served as secretary of labor, pushed that solution, and so has nearly every politician, policy expert and corporate executive.

Young people listened, all too well. In this recovery, college graduates are losing ground faster than any other group, and that is partly because there are now so many graduates. More than 27 percent of the population has a bachelor's degree normally earned in four years of schooling. That is up from 21.3 percent in 1990 and 17 percent in 1980, according to the Census Bureau, and the proportion is rising by a percentage point or so every couple years.

From this group comes management consultants, lawyers, software and computer engineers, research scientists, corporate executives, financial advisers, strategic planners, advertising executives and television producers. These are Mr. Reich's symbolic analysts, and their great contribution is conceptual thinking.

No one does that better than America's college graduates, the argument goes. The next great innovation will come from them - the breakthrough that will keep the United States on top in the global economy and generate jobs within the country for workers with less education, too.

That is bedrock theory. Democrats and Republicans both subscribe to it. True, in the raging debate over the offshoring of jobs, various short-term fixes are offered - protectionist measures, for example, and tax incentives to encourage companies to preserve jobs at home. But the thesis prevails: Our college-educated, with their superior skills, give the United States a long-term natural advantage. Jagdish Bhagwati, a prominent international economist at Columbia University, put it bluntly in an Op-Ed article in The New York Times last month. "I have taught hundreds of fine foreign students in the last few years, but only a small fraction are at the level of proficiency that Intel looks for in its research program."

Well, if America's college graduates -the men and women with the equivalent of a bachelor's degree or more - are so special and in such demand, why are they suffering in the current job market? No other group has taken the beating they have in the last four years. The percentage of all college graduates 25 and older who hold jobs fell from just over 78 percent in 2000 to just under 76 percent in 2003. That was the lowest level in more than 25 years, according to an analysis of Labor Department data by the Economic Policy Institute, a research group in Washington. And they are joining the rolls of the long-term unemployed at a faster rate than any other group, educated or not.

The 25- to-35-year-olds have been hit the hardest. The portion employed in this group of college graduates dropped from more than 87 percent in 2000 to 84.1 percent late last year. That was also the lowest since the late 1970's, and their average wage has fallen since 2001.

Let's not blow these hardships out of context, however. College graduates are still more likely to have jobs than others, and their wages are notably higher. "In terms of employment, college graduates enjoy a big premium, just not as big as it used to be," said Lawrence F. Katz, a labor economist at Harvard. "They appear more vulnerable to economic shocks than in the past. And we don't fully understand why."

The bubble economy of the late 1990's contributed to the distress. Companies over-hired the college educated, particularly in high-technology areas. When the bubble burst, many were laid off, and now employers are hiring as few as possible. Unable to raise prices, they hold down costs, particularly the cost of high-wage labor. Demographics play a role. College graduates are being hired. But only 2.5 college grads are landing jobs for every 3.5 getting degrees, and so the ratio of employment to population falls.

Offshoring is a factor. More than in the past, work done by Mr. Reich's symbolic analysts is migrating to India and China. The numbers are still small, but the sense of vulnerability is widespread. "What most of these workers have in common is the sense that they have personally been devalued or harmed," said Jacob S. Hacker, a political scientist at Yale.

Mr. Reich says his original assessment, nearly 13 years ago, still holds. He blames insufficient economic growth. Despite a recent surge, the current recovery is one of the weakest on record. "Once the economy bounces back," he said last week, "college-educated symbolic analysts will be in great demand" in the United States.

Like most politicians, economists and policy experts, Democratic and Republican, Mr. Reich keeps his faith in the curative powers of a strong economy. But what if the offshoring bleeds away so much of the work now done by college graduates that the supply of people getting four-year degrees outruns the demand, even in a strong economy? Should government step in, as it did a generation ago, and subsidize job creation to supplement the private sector?

The Democrats expunged that sort of alternative in the Clinton years, and Senator John Kerry of Massachusetts, the presumptive Democratic presidential nominee, has not revived it. But Senator Edward M. Kennedy of Massachusetts, a powerful figure in the Democratic Party, is trying to push his party back in this direction. "We must create new and meaningful jobs for all Americans," he declared in a recent speech. "And we must do this by recognizing once again that government - an enlightened government - has an extraordinary responsibility to assist in this task.''

The speech went unnoticed. Certainly, the nation's symbolic analysts have not picked up the refrain. They might if the demand for their services deteriorates long enough.


TOPICS: News/Current Events
KEYWORDS: college; jobs; outsourcing; trade
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1 posted on 03/14/2004 3:47:36 AM PST by sarcasm
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To: sarcasm
"Symbolic analysts are in ever greater demand in a world market that places an increasing value on identifying and solving problems"

"I've analyzed your issue and determined that you do want fries with that."

2 posted on 03/14/2004 3:54:10 AM PST by martin_fierro (Right about now)
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To: sarcasm
"Senator Edward M. Kennedy of Massachusetts, a powerful figure in the Democratic Party, is trying to push his party back in this direction. "We must create new and meaningful jobs for all Americans," he declared in a recent speech. "And we must do this by recognizing once again that government - an enlightened government - has an extraordinary responsibility to assist in this task."

Contrast this speech to that made by the idiot economic advisor in the Bush Administration who said that "outsourcing was good for America." Ask yourself which kind of speech the unemployed and the young would vote for.
3 posted on 03/14/2004 3:59:09 AM PST by KantianBurke (Arguments that got Arnold elected in 02, will get a "moderate" RINO elected to the White House in 08)
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To: sarcasm
That statistic of non-working folks 25 and over with college degrees will include a lot of people who inherited money in their forties or fifties and decided to stay home. (this is not a tiny number these days, as many elderly folks without glamorous jobs did well in the stock market and with their home appreciation).

It also includes a large number of folks who have decided to stay home and take care of their kids. Many college-educated women are home-schooling their kids, which does not count as working for most statistics. A lot more women are getting college degrees than ever before. Hmmm. Perhaps we should do some conceptual thinking and see that there might be a connection.

4 posted on 03/14/2004 4:02:21 AM PST by Montfort
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To: KantianBurke
Sir Greenspan sayeth:

Although in recent years the proportion of our labor force made up of those with at least some college education has continued to grow, we appear, nonetheless, to be graduating too few skilled workers to address the apparent imbalance between the supply of such workers and the burgeoning demand for them.

5 posted on 03/14/2004 4:05:18 AM PST by sarcasm (Tancredo 2004)
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To: sarcasm
This is just another negative, election year employment story. Expect many more through election day. Should J "Effing" Kerry win, the job picture will magically become bright again.

The Times reads more and more like Pravda and has even less credibility.
6 posted on 03/14/2004 4:06:45 AM PST by Jacquerie (Democrats soil the institutions they control)
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To: sarcasm
Has Robert Reiccccchhhhh ever been right about anything? If so, I'd like to see the proof.
7 posted on 03/14/2004 4:18:13 AM PST by metesky ("Brethren, leave us go amongst them." Rev. Capt. Samuel Johnston Clayton - Ward Bond- The Searchers)
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To: KantianBurke
Ask yourself which one that Lenin or Stalin would have voted for...
8 posted on 03/14/2004 4:20:08 AM PST by ItisaReligionofPeace (I'm from the government and I'm here to help.)
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To: sarcasm
"Although in recent years the proportion of our labor force made up of those with at least some college education has continued to grow, we appear, nonetheless, to be graduating too few skilled workers to address the apparent imbalance between the supply of such workers and the burgeoning demand for them."

I've never been to college, but being a native Bostonian I've grown up? around the college crowd.

The best education to be had on planet earth is by pan-handling at Park St. Station.

IMO ... unless one is to specialize in a given field, the liberal arts "education" is little more than womb to tomb conditioning for good little worker bees.

There may be some truth to the numbers of college grads, but what did they get for their four years?

Whispering 'plastic' in a grad's ear is passe' and all of the video games have been invented.

9 posted on 03/14/2004 4:29:26 AM PST by knarf (A place where anyone can learn anything ... especially that which promotes clear thinking.)
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To: sarcasm
That [a college degree] is your immunization against the outsourcing, offshoring and downsizing that frighten so many workers today.

Since when? Does the NYT ever send a reporter into the REAL world?

10 posted on 03/14/2004 4:30:19 AM PST by 1rudeboy
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To: sarcasm
Although in recent years the proportion of our labor force made up of those with at least some college education has continued to grow, we appear, nonetheless, to be graduating too few skilled workers to address the apparent imbalance between the supply of such workers and the burgeoning demand for them.

Perhaps Bush heard this and that is why he has initiated the "guest worker" amnesty/program. It has been all too clear to me that the education industry has brainwashed Americans into believing that the only way to success is through their program - an ever more expensive and lengthy stay at an institution of higher learning.

They told us that when it came to the menial tasks of the trades, that those positions were beneath us. We would be the management, developers, engineers, lawyers and doctors and would all be well-off if we just did it their way. Now there is a glut of those "educated" and they are not finding the riches they were promised by the educational elite.

How ironic it is when the many on this forum will bash the education system in this country and at the same time point to it as the only way to success.

I find the education system in this country to be close to worthless. Not because the student it teaches lacks education but rather they lack the type of life skills from their education needed to survive in this highly competitive world.

Also, the trades have been so denigrated by the very education elites that are condemned, yet people will still not tell their sons and daughters that learning a trade is honorable and can make you successful.

11 posted on 03/14/2004 4:33:31 AM PST by raybbr (My 1.4 cents - It used to be 2 cents, but after taxes - you get the idea.)
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To: 1rudeboy
Perhaps they have noticed that Reuters is offshoring jobs to India.
12 posted on 03/14/2004 4:34:32 AM PST by sarcasm (Tancredo 2004)
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To: raybbr
How ironic it is when the many on this forum will bash the education system in this country and at the same time point to it as the only way to success.

Claiming that higher education makes one more upwardly-mobile (not an "immunization," as this writer claims), and bemoaning the state of higher education in this country are not mutually exclusive.

13 posted on 03/14/2004 4:38:03 AM PST by 1rudeboy
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To: KantianBurke
Ask yourself what is the actual critical thinking quotient of the actual college graduate of the past 10 years? Having survived 4+ years in the inculcation camps of university undergraduate classes, they reject anything not carrying the imprimateur of the left as right wing rhetoric.

Anecdote (not data):

I know a couple of these wonders and they are now in 2 different law schools where, for the first time in their lives, they are struggeling to maintain a C.

I know 2 people w/bachelors' in chemistry. One is self-employed in a succesful promotion firm in the NYC area and one is self-employed as a consultant and real estate speculator in the Great Plains, having moved there from a major urban area by choice.

I know another graduate w/teaching certification who makes her living in real estate.

2% less have jobs. 2%. You don't think maybe at least 1% are now entrepreneurs?

The poster who mentioned inheiritance has a good point. This covers people in their 30s and 40s. Let's call them another 1/2%, just to bend over backwards to be fair (I know so many of them personally, that I think it is higher).

The other 1/2% may very well be between jobs at the moment and really looking. Or they may be temping.

This is just another journalist for Kerry and the left, IMO.
See
http://www.rasmussenreports.com/Bush%20Kerry%20Fundamentals.htm
You won't like Bush's economic numbers.
14 posted on 03/14/2004 4:39:40 AM PST by reformedliberal
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To: 1rudeboy
Claiming that higher education makes one more upwardly-mobile (not an "immunization," as this writer claims), and bemoaning the state of higher education in this country are not mutually exclusive.

I didn't say they were.

15 posted on 03/14/2004 4:45:17 AM PST by raybbr (My 1.4 cents - It used to be 2 cents, but after taxes - you get the idea.)
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To: raybbr
Then I misunderstood. Sorry.
16 posted on 03/14/2004 4:47:02 AM PST by 1rudeboy
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To: sarcasm
A college degree used to be a surrogate marker that identified someone who was smart and hardworking.

Now that that is no longer true (anybody can get one), why would it have employment value?

17 posted on 03/14/2004 4:49:10 AM PST by Jim Noble (Now you go feed those hogs before they worry themselves into anemia!)
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To: Jim Noble; All
What has happend is that there is a glut of people getting a college degree. Also just because a person has a degree, it does not mean a person would automatically get a high paying job in their field. There is no right of a high paying job.
18 posted on 03/14/2004 4:56:17 AM PST by KevinDavis (Let the meek inherit the Earth, the rest of us will explore the stars!)
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To: sarcasm
The whole problem here is the egalitarian belief that if people graduate from college they are smart and productive. Unfortunately, the bell curve distribution of intelligence augurs that only about 20% of white, Europeans have an I.Q. of 110.

An I.Q. of 110 is the usual cutoff for someone who is expected to do difficult academic tasks including math, science, English and so forth. Actually, people who are very smart (I.Q. 140 and above) are rare and make up only a few percent of the population. This is why the Intel fellow could not find many smart people in his class.

Everytime I quote these basic statistics I receive heat from all those who wish a more egalitarian society. It just won't happen. If you reduce college standards to permit 40% attendance and 27% graduation, you will have a considerable number of people with college degrees without a college education. Nature trumps wishful thinking every time.

Having a high I.Q. does not guarantee academic success. Geniuses flunk out routinely; however, having an I.Q. of 85 to 100 will make it impossible for you to be a rocket scientist.

Since I am a very old man, I can remember when even public education took notice of the wide range of cognitive abilities. Now there is a definite, political thrust to make equality an issue of results not just of opportunity. Reich is a good example of someone who is torn between knowing what is what and what he wishes what is what.

19 posted on 03/14/2004 5:00:01 AM PST by shrinkermd
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To: sarcasm
There are too many chiefs and not enough indians, plus a lot of the college degrees the chiefs have are worth little more than a high shool education a generation ago. Just what do you think a degree in "Women's Studies" or "Queer Literature" is worth?

Without a strong and expanding manufacturing base all we can do is do each others laundry, hold each others hand, flip each others burgers, teach each others children, shepard each others lawsuits and bank each others decreasing supply of actual money. The genuine revenue stream in the common pot just gets smaller while the population (if you include illegals) gets larger.

20 posted on 03/14/2004 5:13:40 AM PST by Gritty ("welfare's greatest crime isn't it's a waste of money, but that it's a waste of people-Mark Steyn)
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