This weekend, millions of students will put on their caps and gowns and receive their diplomas—but in the aftermath of the Great Recession, students face poor job prospects and lower earnings for decades to come. Below is a roundup of EPI’s recent work on the economic outlook of the Class of 2013.
Briefing paper: The Class of 2013: Young graduates still face dim job prospects
The Great Recession and its aftermath have decimated job prospects and earnings for young workers
Economic snapshot: In recession’s wake, many young adults out of work and out of school
There are likely more than a million workers under age 25 who are not in the labor force today who would be if job opportunities were strong. These missing young workers are not “sheltering in school.” College and university enrollment for people under the age of 25 has been increasing for decades, and during the recession enrollment has grown at roughly the same pace.
Economic snapshot: Wages of young college graduates have failed to grow over the last decade
Between 2000 and 2012, the wages of young college graduates decreased 8.5 percent (6.1 percent for men and 10.9 percent for women). These drops translate into substantial amounts of money; for full-time, full-year workers, the hourly wage declines from 2000 to 2012 represent a roughly $3,200 decline.
The large increase since 2007 in the unemployment and underemployment rate of young college grads, along with the large increase in the share of employed young college graduates working in jobs that do not require a college degree, underscores that today’s unemployment crisis did not arise because workers lack the right education or skills. Rather, it stems from weak demand for goods and services, which makes it unnecessary for employers to significantly ramp up hiring.