1.6 million new grads swell ranks of the unemployed
(snip)"May 19 (Bloomberg) -- Ten months after graduating from Ohio State University with a civil-engineering degree and three internships, Matt Grant finally has a job -- as a banquet waiter at a Clarion Inn near Akron, Ohio.
“It’s discouraging right now,” said the 24-year-old, who sent out more than 100 applications for engineering positions. “It’s getting closer to the Class of 2010, their graduation date. I’m starting to worry more.”
Schools from Grant’s alma mater to Harvard University will soon begin sending a wave of more than 1.6 million men and women with bachelor’s degrees into a labor market with a 9.9 percent jobless rate, according to the Education and Labor departments. While the economy is improving, unemployment is near a 26-year high, rising last month from 9.7 percent in January-March as more Americans entered the workforce. (snip)
(snip)"The average salary offered to bachelor’s degree candidates this year is $47,673, 1.7 percent less than 2009, when the economy already was in recession, according to data compiled from campus job-placement offices by the National Association of Colleges and Employers in Bethlehem, Pennsylvania.
Increasing Competition
“More so in the last year to 18 months than at any time, we have seen applicants from prior graduating classes looking for the kind of entry-level jobs we’re recruiting for,” said Dan Black, director of campus recruiting for Ernst & Young LLP, a professional-services firm headquartered in New York. “There are a lot more cohorts competing with each other: ‘09 with ‘10, probably ‘10 with ‘11.”
Unemployment among people under 25 years old was 19.6 percent in April, the highest level since the Labor Department began tracking the data in 1948. Their economic travails may haunt Democrats in the November midterm elections. The youthful voters who helped propel the party to victory in the 2006 Congressional elections and gave the 2008 Obama campaign much of its vibrancy are showing signs of waning enthusiasm."(snip)
(snip)"Even graduates of elite and graduate universities feel the impact. A new listserv of “Hot Opportunities” Harvard’s career-services office began compiling in March garnered 1,000 student subscribers in its first two days.
“This is the first year we have seen such a demand for our services this close to graduation,” said Robin Mount, director of the office in Cambridge, Massachusetts.
Thirty-three percent of Harvard’s graduating seniors had accepted a job as of commencement last year, down from 51 percent the year before. The survey results for this year’s class haven’t been released."(snip)
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Re: 1.6 million new grads swell ranks of the unemployed
Quote:
Originally Posted by
Melonie
Unemployment among people under 25 years old was 19.6 percent in April, the highest level since the Labor Department began tracking the data in 1948.
Wow. Just... wow. We almost never hear about these numbers when the mainstream media tells us the average unemployment rate. A percentage this high for youths will adversely affect our country for YEARS to come.
Re: 1.6 million new grads swell ranks of the unemployed
^^^ yes and that is without counting in the additional 1.6 million 'college students' ... many of whom are about to become 'unemployed persons under age 25' later this month ! If you consider that the US population is on the order of 300 million, and that 1/2 of that number or 150 million are of working age, those 1.6 million new 'entrants' into the US labor pool would represent a significant rise in the overall unemployment rate if properly accounted for.
The flip side of course is that the average level of student loan debt carried by these new graduates is about $21,000 ... with many graduates of private colleges carrying student loan debt levels of $40,000 or more, sometimes MUCH more. Once they graduate, student loan debt (re)payments kick in. In conjunction with a 20% unemployment rate and a $47,000 average starting salary ( subject to increasing taxation levels ) for new grads who do manage to land a job, the economic future certainly doesn't appear to be very bright ! This is particularly the case for grads with majors in fields that are not in demand i.e. liberal arts, education etc. where if they are able to find a job at all the starting salary is likely to be closer to $30,000.
~
Re: 1.6 million new grads swell ranks of the unemployed
I told ya so and today's New Unemployment Claim numbers bear out what I've been posting. Along with a 300 point drop in the Dow. Obama's program has done NOTHING to generate NEW PRIVATE sector jobs. Nor does it promise to do so.
Re: 1.6 million new grads swell ranks of the unemployed
Perhaps this is the reason for the increase in the unemployment figures......... remember that recent post?
Also where did you get the idea that private sector jobs are not increasing? I'd like to see that info you used for that odd statement.
Re: 1.6 million new grads swell ranks of the unemployed
Quote:
Originally Posted by
threlayer
Perhaps this is the reason for the increase in the unemployment figures......... remember that recent post?
Also where did you get the idea that private sector jobs are not increasing? I'd like to see that info you used for that odd statement.
I said that OBAMA and HIS policies have not created any NEW PRIVATE sector jobs. Not that some new private sector jobs are not being created. According to both the Payroll and Household surveys, there are some. I would argue, based on the Obama Regime's own data, that those jobs result from the upswing in the business cycle. Obama's own numbers show that his policies have had a NET ZERO effect on economuic growth and PRIVATE sector employment.
Re: 1.6 million new grads swell ranks of the unemployed
Where did the "upswing in business" come about? How can you possibly separate the upswing from what the government has done? Is it because you want not to give any credit at all to the Obama administration? Again, where are the data?
No comment about my comment about the reason for the recent jobs numbers?
Re: 1.6 million new grads swell ranks of the unemployed
^^^ in order to be counted in the official U1 unemployment statistic, the person must qualify for and register to collect unemployment benefits. One of those eligibility requirements is having previously worked for X months at a job where the employer paid into the state unemployment fund on their behalf. 90%+ of new high school and college graduates fail this eligibility requirement. Thus they won't appear in the official U1 unemployment statistic ... they merely add to the unofficial ~20%+ of Americans who don't have a job.
Quote:
Where did the "upswing in business" come about? How can you possibly separate the upswing from what the government has done?
True to some degree. Indeed the largest 'upswing' in the balance sheets of large US businesses had been profits on exports / foreign operations ... with increasing export sales / foreign business profits being directly attributable to the falling exchange rate value a.k.a. purchasing power of the US dollar versus other currencies. And that falling exchange rate / loss of US dollar purchasing power was indeed the result of US gov't policies !!!
Of course, this trend has abruptly reversed as a result of the Greek / Euro debt crisis ... such that the US dollar has again strengthened in relative terms. Thus reduced profits for US businesses should be expected next quarter.
Re: 1.6 million new grads swell ranks of the unemployed
Quote:
Originally Posted by
threlayer
Where did the "upswing in business" come about? How can you possibly separate the upswing from what the government has done? Is it because you want not to give any credit at all to the Obama administration? Again, where are the data?
No comment about my comment about the reason for the recent jobs numbers?
If you bother to LOOK at the data from the Departments of Labor and Commerce as well as the CBO and GAO; it is clear that the only thing "stimulated" by Obama's stimulus package was GOVERNMENT employment. They ascribe a net ZERO effect on GDP to his program.
There are positive economic indicia like corporate profits, increased purchasing and shipping and the like. According to both the Payroll and Household surveys, employment has increased. One problem is that new job creation has NOT kept pace with the increase in population.
Typical post-recession GDP growth is 7 to 8 %. We are wheezing along at a relatively anemic 3 to 4 % depending on whose analysis you favor.
Re: 1.6 million new grads swell ranks of the unemployed
^^^ and even if you don't count illegal immigrants, the US population is expected to grow by some 3 million people every year. Demographically speaking, Americans under age 20 make up 27% of the US population, while Americans past retirement age make up 12% of the population. Based on back of the envelope calculations, this means that, counting jobs freed up by retirements that are filled by younger workers, that an additional ~1.7 million new jobs still need to be created annually to provide jobs for the additional younger Americans entering the work force just to hold the US unemployment rate constant. This is obviously not even close to happening !!!
Quote:
We are wheezing along at a relatively anemic 3 to 4 % depending on whose analysis you favor
^^^ a statistic that can be broken down into a positive 5-6% GDP growth due to gov't spending and NEGATIVE 2% GDP 'growth' in the private sector.