Class of 2013 faces grim job prospects

Yahoo Finance ^ | April 10, 2013 | Annalyn Kurtz

[Hojczyk]

The Class of 2013 will face an "extremely difficult" job market when college students graduate in the months ahead, according to a new research report.

Unemployment remains high for young college grads. For those who will find jobs, many will probably have to settle for low-level positions, the Economic Policy Institute said Wednesday.

The unemployment rate for recent college grads between the ages of 21 to 24 has averaged 8.8% over the last year, according to Labor Department data.

Once you also include young grads who are working part-time for economic reasons, and those who have stopped looking for a job in the last year, the so-called "underemployment rate" is a whopping 18.3%. Sure, the job market has improved during the past few years. But both these rates remain higher than pre-recession levels.

And young graduates with jobs may be questioning whether college was worth it.

As of 2012, about 52% of employed college grads under age 25 were not working in jobs that require a college degree, said Andrew Sum, an economist at Northeastern University. That's up from 47% in 2007 and 40% in 2000.

But EPI said the job problem for recent college grads stems more from weak demand for goods and services, rather than a lack of the right education or skills.

[Pollster1]

You mean that ObamaCare and Obamanomics have natural consequences? That was unexpected.

[roadcat]

For those who will find jobs, many will probably have to settle for low-level positions, the Economic Policy Institute said Wednesday.

And what is wrong with that? They never heard of working your way up the ladder? One of my daughters graduated, took a job not paying much, and within several years and several job positions later had quadrupled her earnings. She never complained, but she did work hard, learned new skills. Same as honest folks been doing forever. Kids now are spoiled and hate to work hard.

[nascarnation]

When you have McDonalds looking for 4 yr degree folks as first line grille supvs, you know the Baraqqi “new normal” has truly arrived.

[roadcat]

If you graduate from the college of arts, even McDonalds hires from time to time.

Some of what you say has merit. However, it comes down to individual initiative and what one learns as to whether or not they land a job. I have a daughter who got a degree in music (I worried at the time she selected her major but supported her.) She turned that into a great career in the music publishing industry, writing and editing music oriented magazines at desk jobs (which she still does freelance from home), and now works in music equipment design. It's about casting a wide net for ideas for jobs to support your degree and knowlege. Many kids assume a degree will automatically drop a job at their feet, clueless that they need to persue the unknown jobs that are out there.

[roadcat]

Yes, I thought that was bizarre about McDonalds requiring 4-year degrees. However, I truly believe that kids can make it, whether they have a degree or not. It depends on individual initiative and hard work. My children are fortunate in that I gave them the means to earn their degrees. But I also have nephews and nieces without college degrees that are doing fine. I also have relatives with degrees that are doing poorly - but that’s due to their being unfocused and lazy. Not trying to generalize, I recognize that the Obama economy sucks, but initiative and hard work gives one an advantage.