Worst Job Market in a Generation for New Grads
A report released today by the Economic Policy Institute paints a grim employment picture for 2010 high school and college graduates. The recession is to blame for the worst job market in a quarter of a century for young Americans, according to the report, The Class of 2010: Economic Prospects for Young Adults in the Recession by researchers Josh Bivens, Kathryn Anne Edwards, Alexander Hertel-Fernandez, and Anna Turner
The unemployment rate for college graduates younger than 25 grew from 5.4 percent before the recession in 2007 to an average of 9 percent over the last year. And that doesn't include the many college graduates who are employed in jobs below their skill level. Unemployment among young high school graduates nearly doubled from 12 percent in 2007 to an average of 22.5 percent the last year.
The report notes that being out of work or underemployed leaves many of these recent grads without a safety net because young workers are often ineligible for public assistance during times of unemployment.
This is discouraging news for graduates, more of whom are saddled with significant student-loan debt upon graduation.