Fewer jobs available for those with college degrees, as economy slows (June 2024)

Discussion in 'Economics & Trade' started by kazenatsu, Jun 7, 2024.

  1. kazenatsu

    kazenatsu Well-Known Member Donor

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    Start of June, 2024

    There are signs that hiring is down for recent college graduates. Many people with college degrees are having trouble being able to get the traditional better jobs that usually require college degrees.
    This is not a good sign. It is indicative of the present state of the economy, and where the United States is headed.

    Below are some snippets of articles that were in the news.


    New college grads face a cooling job market
    Aimee Picchi, MoneyWatch, May 21, 2024

    Hiring for freshly minted college grads is forecast to decline 6% from a year earlier, according to a recent survey of more than 200 employers from the National Association of Colleges and Employers, a group representing college career services employees. Data from payroll services provider Gusto also shows that the new grad hiring rate - the share of recent graduates who are hired in a given month - is now about 6%, down from a recent peak of 10% in 2021.

    Securing that first job out of college may be a rite of passage, but it can also be nerve-racking for young adults who need to pay for groceries and make the rent. And about 4 in 10 recent college grads are currently "underemployed," meaning they're working in a job that doesn't require a college degree, according to data from the Federal Reserve Bank of St. Louis.

    "We know that the first job out of college is incredibly important when setting the course for the rest of a person's career," Wilke said. "However, not every college graduate is going to enter a booming job market, and some are not afforded the option of being picky."

    original link to article: New college grads face a cooling job market. Here's where the jobs are. - CBS News


    White-collar workers are struggling to find jobs as the labor market slows
    Megan Henney, Fox News, June 6, 2024

    The U.S. labor market is cooling off after months of rapid job gains, but some workers are feeling the slowdown more than others.

    Recent data published by Vanguard shows demand for higher-income employees is waning, painting a picture of a two-tier job market that has seen hiring flourish for blue-collar workers and languish for white-collar workers.

    Among the lowest-income earners - those making less than $55,000 annually - the hiring rate has remained above pre-pandemic levels, at 1.5%. But hiring for those who earn more than $96,000 has slowed to just 0.5%, less than half the peak it hit in mid-2022, according to the report, which is based on new enrollments in Vanguard's 401(k) plans.

    It marks the slowest hiring rate for high-income workers since 2014, excluding a major drop during the pandemic.

    Tech companies slashed more than 47,000 jobs in April, a 58% decrease from the nearly 114,000 cuts announced during the same period the previous year, according to a separate analysis conducted by Challenger, Gray & Christmas.

    "It does appear to be a bit of a rolling recession in the economy, with white-collar fields overall not contracting, but being very flaccid, so things aren't growing either," said Julia Pollak, the chief economist at ZipRecruiter.

    original link to news article: White-collar workers are struggling to find jobs as the labor market slows | Fox Business


    Fewer than 1 in 5 job listings require college degrees. Here's why college still matters
    Heidi Rivera, Bankrate, April 27, 2024

    A growing number of U.S. employers are nixing college degrees from hiring requirements in job postings, according to Indeed.

    In January, fewer than 1 in 5 of the jobs listed on the platform required a four-year degree or higher. Over half (52 percent) didn’t list any education requirements at all.

    Less than 18 percent of job postings on Indeed listed college degrees as a hiring requirement in January - down from 20.4 percent in 2019. The report, which was published earlier this year, also found that over half (52 percent) of U.S. job postings on the platform lacked an education requirement.

    Georgetown University's Center on Education and the Workforce predicted that, by 2031, most U.S. jobs will require some form of postsecondary education or training, and 72% of jobs will require some sort of postsecondary degree and/or training by 2031.
    But is the prediction truly accurate?

    PayScale's latest Compensation Best Practices report found over a third of surveyed organizations (34 percent) have eliminated degrees as an employment requirement.

    original link to article: Fewer than 1 in 5 job listings require college degrees. Why College Still Matters | Bankrate


    A grim trend among Americans without college degrees
    As Princeton economists Anne Case and Angus Deaton show in their new research, the gulf in life expectancy between people with and without a college degree has widened dramatically since the 1990s. As of the end of 2021, there was a shocking 8.5-year age gap between the two cohorts.

    link to another thread
    : Americans without a college degree are not living as long (posted in Economics & Trade, September 30, 2023)


    Why Is It So Hard For Recent College Graduates To Find A Decent Job?
    Jack Kelly, Forbes, February 15, 2024

    Young adults are having a challenging time finding good, well-paying jobs. The job market is extremely competitive, as more and more Americans attain college degrees. Furthermore, employers are requiring unrealistic professional experience for entry-level positions, making it difficult for recent graduates to compete in the job market.

    A 2023 college pulse survey by LendEDU found that less than half of all college graduates are confident about their career prospects after leaving campus.

    The number of young adults who are underemployed - working jobs below their skills or ability - increased to 40% in 2023, according to data from the Federal Reserve Bank of New York.
    A Reddit post under the heading "Why is it SO HARD to find an entry-level job?" reflected on a recent graduate's frustration with the job search, having applied to over 500 positions and receiving minimal responses. The thread highlights the challenges of securing entry-level positions despite having a bachelor's degree.

    original link to article: Why Is It So Hard For Recent College Graduates To Find A Decent Job? (forbes.com)


    Class of 2024, It's Not in Your Head: The Job Market Is Tough
    Peter Coy, opinion article in New York Times, April 29, 2024

    Fifty-two percent of college grads are underemployed a year after graduation, meaning they are working in jobs that don't require the degrees.

    Five years out from school, about 88 percent of those who are underemployed are "severely" underemployed, according to a February report by the Burning Glass Institute, which analyzes the job market, and the Strada Institute for the Future of Work.


    Biden Gets More Bad News About the Economy
    Omar Mohammed, Newsweek, May 30, 2024

    The U.S. economy accelerated at a slower pace in the first quarter than initially thought, the Commerce Department revealed on Thursday, as consumers pulled back on spending.

    In the three months to begin the year, the economy grew at annual rate of 1.3 percent, with the latest estimate lower than the initial reading of 1.6 percent that was revealed last month. The economy slowed from the end of last year when it expanded by 3.4 percent.

    "The update primarily reflected a downward revision to consumer spending," the Commerce Department's Bureau of Economic analysis said in a statement.

    Half of voters surveyed by Redfield & Wilton Strategies for Newsweek on April 11 say the U.S. economy was headed in the wrong direction and close to 60 percent name it as the most important issue facing the country.

    original link to article: Biden Gets More Bad News About the Economy - Newsweek


    related threads
    :
    Inflation cuts away at American's savings, may soon spell trouble for economy (posted in Economics & Trade, July 24, 2023)
    A dark shadow belies the current U.S. jobs report (posted in Economics & Trade, May 5, 2024)
    Beginnings of default on debt in U.S. economy (October 2023) (posted in Economics & Trade, October 21, 2023)

    If current financial trends continue, the American middle class may find certain once-affordable items slipping out of reach. In the next five years, the costs of housing, healthcare, and transportation could surpass the average American household's budget.

    Homes, college tuition, private schools, healthcare, extended family vacations, retirement, new cars, organic food, premium streaming TV services, leisure travel in retirement.

    more threads:
    Young adults are still financially reliant on parents (posted in Economics & Trade, January 26, 2024)
    Half of young adults had anxiety and depression in 2023 (posted in Healthcare, December 3, 2023)
     
    Last edited: Jun 7, 2024
  2. Natty Bumpo

    Natty Bumpo Well-Known Member

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    '

    Burning Glass Institute College majors (or the field of study) and internships matter more than geography, gender, ethnicity and institution type, according to the study. Underemployment rates vary by college major.

    America's prosperity persists.
    6a00d8341c858253ef00e54f74f2ed8834-640wi.gif
    Hiring and Wages are Up, Reinforcing the Economy’s Resilience
    WALL STREET JOURNAL - June 7, 2024

    U.S. job growth burst past expectations last month even as the unemployment rate edged up to 4%, presenting a mixed view of a labor market that has generally been cooling while staying hotter than many anticipated.

    Employers added 272,000 new jobs in May, the Labor Department reported on Friday, more than in April and well above the 190,000 that economists had expected. The jobs don’t include agriculture jobs, and are adjusted for seasonal swings like extra hiring around holidays. Average hourly earnings also topped forecasts, rising 4.1% from a year earlier.

    Overall, analysts said that the hiring boost highlighted the continued resilience of the U.S. economy, which has defied expectations as businesses keep hiring, wages keep rising and consumers keep spending in the face of steeply higher borrowing costs and persistent inflation...

    ... unemployment remains low by historical standards and has shown little sign of making a big jump. The unemployment rate has been at or below 4% for 30 months, something most working-age Americans never have experienced.

    Looking across a broad array of economic data, “you do see a general path toward softening in the labor market,” said Jonathan Pingle, U.S. economist at Natixis. However, he said, it is hard not to conclude after Friday’s report that “we have a considerably stronger labor market than we expected a month ago.”


    [https://www.msn.com/en-us/money/mar...conomy-s-resilience/ar-BB1nOhGR?ocid=BingNews]


     
    Last edited: Jun 7, 2024
  3. kazenatsu

    kazenatsu Well-Known Member Donor

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    But how many of those jobs are lower paying jobs?

    If you read one of the articles I presented, it said hiring for high-income jobs is down. But is doing good for jobs paying less than $55,000 a year.
    (This at a time when the median home price is $412,000)

    Also see these threads:
    All the job growth since 2019 has gone to immigrants, less educated men hurting (in Economics & Trade, Feb 26, 2024)
    Half (or maybe all) of new jobs have gone to illegal immigrants

    So of course it would make sense that the U.S. is "adding more jobs" if it is adding more people. But again, what type of jobs are those?
     
  4. Natty Bumpo

    Natty Bumpo Well-Known Member

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    As always, it's a mixed picture but, overall, the U.S. economy is doing far better than many had been predicting.
     
  5. kazenatsu

    kazenatsu Well-Known Member Donor

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    Well then, I'm glad there were "many" who were making predictions more pessimistic than my own.
     
  6. Natty Bumpo

    Natty Bumpo Well-Known Member

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  7. kazenatsu

    kazenatsu Well-Known Member Donor

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