Even if the unemployment crisis to come the 2008 financial collapse seems to be easing, under the surface of more cheerful unemployment numbers the situation continues to be dire –?specifically for recent college graduates. According to The Wall Street Journal, an increasing number of graduates leave school with considerable amount of student debt, yet is only able to land low-skill jobs that don’t make the most of their degrees.
Further bad news is provided thanks to a recent study that predicts that even if the economy rebounds, the scholars leaving college at this time might not benefit. For individuals who hoped that this wave of underemployment C skilled workers in jobs that don’t require qualifications beyond a higher school degree C was temporary, the report is really a splash of cold water.
The paper was published the 2009 week through the National Bureau of monetary Research and it is authors argue that there will \’t be a hiring frenzy after this recession as there was after the one in the mid-1990s, especially in the technology sector.
This is within part due to the fact that a lot of the infrastructure necessary to move to high tech manufacturing or or other high-tech industries is already in place, yet colleges and universities continue to churn out graduates who have the skills needed to perform these kinds of jobs despite the fact that there’s nobody interested in hiring them.
David Autor, an economist in the Massachusetts Institute of Technology that has studied problems with skills and education, called Mr. Beaudry’s thesis “provocative” but also “speculative.” There isn\’t any question, Mr. Autor said, that the wage premium enjoyed by college graduates hasn’t grown as quickly during the 2000s as in earlier decades. But whether that\’s the result of a glut of degree holders or some other explanation isn’t yet clear.
Meanwhile, there\’s a stream of stories about college graduates arranging for jobs that top schoolers could capably perform. Brian Hackett, who graduated having a political science degree nearly three years ago, now works as a filing clerk alongside others with bachelor’s, master’s as well as law degrees. He explains that this is a situation present with many of his friends who have degrees and skills and nowhere for their services.
How do we square this analysis with frequent complaints from heads of technology companies that they are trying and neglecting to land qualified workers, and so are pushing the federal government to ease immigration restrictions to create up the shortfall?
Mr. Beaudry said it is possible such shortages appear in specific industries. But using Labor Department data, Mr. Beaudry and the coauthors found that demand for college-level occupations-primarily managers, professionals and technical workers-peaked as a share from the workforce within 2000, just as the dot-com bubble was about to burst, and then began to decline. The supply of such workers, meanwhile, grew even larger through the 2000s. The following housing boom helped mask the issue by creating artificially popular for workers of all kinds, but only temporarily.