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Tuesday, April 24, 2012

Un/Underemployment Rate Hits 50% for New College Grads

There is welcome news of sorts for Troglotykes #1 & #2, who will be both be in college this fall with academic interests that align with current employer demand. However, on average, a college degree isn't worth what it once was. Like with most everything, the value of a diploma follows supply and demand. From USA Today:
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.

Taking underemployment into consideration, the job prospects for bachelor's degree holders fell last year to the lowest level in more than a decade.
Take into account the spiraling costs, and the easy access to student loans to cover them in the short term, and, with the earning power shrinking with declining demand when exiting college, it is easy to conclude we are blowing up another economic bubble. The question will be whether we ignore it until it pops, or have the will to try to deflate it. It also means the Troglodytrix and I likely will have to counsel against any potential changes in college majors.

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