College graduates lose edge in Job market as unemployment gap with high school grads hits record low
The chairman of Orn Ferry The chairman of Orn Herry Alan Guarino tells the morning of Maria that despite the weak wage data and the suspicious government shutdown, the American job market is still set for good growth, for a long time.
A college degree They may lose their edge in the labor market, as the unemployment gap between them and workers with only advanced degrees has narrowed and reached its lowest level in decades, according to a new report.
The Federal Reserve Bank of Cleveland analyzed unemployment trends among high school and college graduates between the ages of 22 and 27, as high school graduates experience higher unemployment rates.
A Healthy Cleveland Economists found that The unemployment gap It has declined steadily since the financial crisis of 2008 and recently reached its lowest level since the late 1970s. They also found that the decline has been accompanied by a decline in the employment rate – the proportion of the unemployed who find work each month – with young college graduates starting in 2000.
The Cleveland Fed found that the gap between college grads and top grads getting their first jobs has narrowed. (David Paul Morris/Bloomberg via Getty Images)
“Recently, the employment rate of college-educated workers has declined to keep pace with the rate of new high-school-educated workers, indicating that college-level employment opportunities are long overdue,” the researchers said.
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This study also found that some transitions to unemployment, such as the division of labor or input from outside the workforce, are removed from the margins of high school, without several temporary deviations, from temporary lungs over business cycles.
However, high school graduates remain unable to compare with their college graduates in terms of attendance Job retention and compensation.
“In particular, the unemployment rate for new high school-educated workers remains higher than that for workers with less college education, and as a result, young graduates retain benefits in terms of job stability and compensation.
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This study also found that some transitions to task management were carried over to Tandem in both high school and college classrooms over time. (Yuki Iwamura / Bloomberg via Getty Images)
The report noted that with young students facing high rates of unemployment, there are “extensive anecdotes of finding work and technical financial issues.”
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This page Cleveland consumed Economists have realized that if these trends continue, they could increase the way young Americans view the importance of investing in a college environment.
“The labor market benefits conferred by a college degree are historically geared toward investing in Higher Education and increasing financial support for college. If we get these higher education reforms,” ​​they write.
However, they caution that their report focuses too much on prospects for first-time jobs and that college graduates still hold the upper hand. High school diploma to other important personnel matters.
“However, it is important to note that not all employment benefits have disappeared for college graduates. They continue to receive lower employment rates than high school graduates, meaning that college graduates receive more premiums,” the report said.
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“The convergence we report suggests a first step towards finding a job rather than labor market outcomes,” the economist said. “These data suggest a subtle shift in the hiring dynamic, one in which College students are finding it harder to find jobs than before but maintain higher benefits in terms of work intensity and compensation once hired.”
