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Title
41% of Recent Grads Work in Jobs Not Requiring a Degree
By
[65]Elizabeth Redden
February 18, 2020
[66]Comments
The unemployment rate for young college graduates exceeds that of the
general population, and about 41 percent of recent college graduates --
and 33.8 percent of all college graduates -- are underemployed in that
they are working in jobs that don't require a college degree, according
to [67]new data from the Federal Reserve Bank of New York.
The December 2019 unemployment rate for individuals aged 22 to 27 with
a bachelor’s degree or higher was, at 3.9 percent, slightly higher than
the 3.6 percent unemployment rate for all workers between the ages of
16 and 65. However, it was lower than the 6.5 percent unemployment rate
for 22- to 27-year-olds without a four-year degree. The unemployment
rate for all college graduates up to age 65 was 2.2 percent.
"It's maybe a little bit counterintuitive, but it’s not particularly
surprising and the numbers have been pretty consistent for years," said
David Soo, the chief of staff at Jobs for the Future, a nonprofit
organization focused on aligning educational and workforce needs to
promote access to economic advancement. "It's just that young people
coming out of school often need a couple of years to get a foothold in
the labor market, and then you start to see their unemployment and
underemployment numbers come down. An investment in college is still
the best one out there."
The New York Federal Reserve data also highlight varying unemployment
and underemployment outcomes for recent college graduates by major, as
summarized in [68]this chart. Recent graduates of programs in
education, engineering and nursing have among the lowest unemployment
and underemployment rates, while rates are much higher for recent
graduates in many fields in the liberal arts and sciences and some
professionally oriented fields. The field whose recent graduates have
the highest rate of unemployment is mass media (7.8 percent), while the
field whose recent graduates have the highest rate of underemployment
is criminal justice (73.2 percent).
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