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Jobless rate for young grads hits 26-year high

June 12th, 2009, 3:00 am · 7 Comments · posted by Mary Ann Milbourn

The jobless rate for workers under 27 years old with a bachelor's degree or higher averaged 5.9% in March-April, the second-highest in modern history, reports the Economic Policy Institute.

The highest unemployment rate among young college grads was in 1983 when it reached  6.2%, based on records dating back to 1979. (Click on chart to enlarge.)

grad-jobs

Younger college grad typically weather the vagaries of the economy better than those with less education. But during this recession, the jobless rate for this group has shot up faster than during past downturns and is higher compared to the general population, says Kathryn Edwards, the institute economist who did the analysis.

She notes that, in past declines, the unemployment rate for grads was about half that of the overall unemployment rate.  In this recession, the rate for young grads is about 70% of the overall jobless rate.

Edwards' conclusion:

"Although still better off than their peers without a higher education, young college graduates face challenges unique to their age and situation—it is likely that they have considerable debt from financing school, have had no time to build up savings, and, if looking for their first job, are not eligible for unemployment benefits."

The National Association of Colleges and Employers reported in May that just 19.7% of this year's college grads had jobs lined up for after they graduated compared to 51% in 2007 and 26% last year.

Read the Economic Policy Institute report HERE.

(Chart and photo from the Economic Policy Institute.)

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 7 Comments

  • TheAllKnowing says:
    June 12, 2009 at 6:30 pm

    Well duh.... that's because with each new year brings a new crop of college graduates who won't take entry level jobs that are "beneath" them.

    I remember interviewing a girl during the dot com boom who was a recent college grad and wouldn't even listen to any offer we proposed since it didn't include stock options.

    And good luck trying to compete with people that actually have experience and are looking for the same jobs after being laid off.

    Here's some words of advice to those who have recently graduated college: Remember, if though you may think so, you're not all that.

  • gdb says:
    June 12, 2009 at 7:25 pm

    the good times college grads experienced in 1995-2000 probably aren't coming back anytime soon. that period was insane. what is happening now is closer to normal.

  • gameon says:
    June 13, 2009 at 7:50 am

    this is about young grads. what about us old and crusty grads fresh out of college? i think we may have an advantage? maybe.. i dont know..

  • Melanie says:
    June 13, 2009 at 10:26 am

    Well, I think that the largest segment of those unemployed don't have a college degree, so these young grads are still better off. They will have to suck up and take those clerical jobs that are now requiring an undergrad as a part of the requirements for the position.

  • Todd Link says:
    June 13, 2009 at 11:13 am

    Thank you for the change Obama. Nothing like taking the country and flushing it down the toilet. The funny thing is, most of the kids that just graduated from college and can't find a job actually voted for Obama. They reap what they sow.

    • hunterr83 says:
      June 15, 2009 at 9:05 am

      Nice try, Todd. Obama can't give you a job, nor can any other President. Getting a job, whether you're a recent college grad or not or even if you've never graduated is up to the individual. Besides, even if Obama could make a difference, it would probably take longer than 5 or 6 months to get it done. The word President doesn't equate to Miracle Worker.

    • emeryannharris says:
      June 15, 2009 at 10:54 am

      Yeah, Ted, the US economy was super strong - USA! USA! USA! - until Jan 20.