Connect with us

Hi, what are you looking for?

Employment

Why You Should Stop Caring About the Jobs Report

young professionals
young professionals

young professionals

College grads today either have the entire world laid out in front of them or are completely and utterly screwed. It all depends on who you ask.

Unfortunately for the 1.8 million college graduates entering the job market this month (and the hundreds of thousands of sophomores and juniors who are slaving away at internships this summer in the hopes of strengthening their career prospects), no one is really wrong about those figures.

In fact, if you’ve been paying attention to employment statistics lately, there’s even more noise crowding the already-crowded field of employment projections and reporting for college graduates. I thought I’d take the time to break down two of the latest reports and help you see if there’s any hope left whatsoever (hint: there is).

The Good

Let’s start out with the good: life sucks considerably less for most Americans than it has over the past half dozen or so years. According to the unemployment data released last Friday by the Bureau of Labor Statistics, the US economy is doing pretty well. Despite slowing growth and employment data in the beginning of the year, it looks like we’re bouncing back pretty well.

First, the numbers: the US economy added 280,000 jobs last month – a figure that beat all but the most optimistic estimates. The unemployment rate ticked up a negligible 0.1 percent to 5.5 percent. If you’re a recent graduate, even if you’re unemployed, that’s cause for celebration. Logically, research shows that the lower the US unemployment rate is at graduation, the better graduates’ career prospects are overall.

We’re also starting to see the beginning of what might amount to real wage growth, with wages rising an average of 2.3 percent over the past year. That could mean (and I’m being optimistic here) that the so-called “slack” in the labor market is starting to tighten and companies are being forced to pay their employees more in order to attract talent. According to Tara Sinclair, chief economist at employment website Indeed, rising wages could also mean that discouraged workers, or workers who had given up on looking for a job, are starting to reenter the workforce.

To keep piling on good news, other economic indicators look positive as well. Despite decreased spending in the early parts of the year, certain signs, such as the fact that Americans are buying more cars and building more homes than they were in the past, are pointing towards a surging economy.

The Bad

College grads are still facing an uphill climb into the workforce, according to a new report released by lead consulting firm Accenture. Per the firm’s 2015 U.S. College Graduate Employment Study, nearly half of 2013 and 2014 graduates consider themselves underemployed or are working in a job that doesn’t require a college degree. That’s an increase from 40 percent of 2011 and 2012 graduates.

Even worse, while 2015 graduates expect competitive salaries (more than a quarter expect to earn more than $50,000 per year), statistics show that less than one in five will actually do so. Thanks to underemployment, 41 percent of graduates are actually earning less than $25,000 per year. In other words, introductory wages are lower than they were at the turn of the millennium… fifteen years ago.

That’s deflating news for graduates who, statistically, are much more prepared for the job market than their predecessors. According to Accenture, most (82 percent) of this year’s grads examined the job market before choosing a degree path (of graduates from my class, 2013, only 69 percent did so). This year’s grads have also taken more internships (72 percent) and tended to lean towards skill-specific, higher-paying STEM (Science, Technology, Engineering and Math) degrees.

The Takeaway

So what should you take away from all of this?

The first is that things are solidly looking up. The Great Recession is in our rearview and even though we still see scary statistics like “49 percent underemployment,” we’re seeing a recovery that’s starting to seriously impact the middle class. College graduates today are headed into a strong-and-getting-stronger job market that’s showing few signs of slowing down.

The second takeaway is that despite shrinking unemployment and growing wages, college graduates simply don’t have it easy anymore. As more and more students approach their college degree with a career path in mind and then spend four years focusing on specific skillsets and taking industry-specific internships, it’s never been more important to start networking and learning about career paths during your freshman and sophomore years.

At the same time, there’s something about an education that studies and statistics can never accurately represent – that is, the importance of also making time to explore interests outside of what you believe is going to be your career.

What do you think? Are college grads finally out of the woods? How do you balance your career path with your passions? Let us know in the comments.

1 Comment

1 Comment

  1. Pingback: Daily Pregame: September Jobs Report States the Obvious; Chaos Ensues - GenFKD

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

economy

In the early 2000s, I remember watching a game show, and the grand prize was a million dollars. I thought to myself, “Wow, that’s...

economy

When starting college and choosing a major, it’s important to know which college degrees will make you the most money. Since last year’s quarantine,...

2016 president election

In a political climate dominated by a two-party system, Libertarians are constantly confused as off-brand Republicans. Although the two groups sometimes align on issues,...

Business

What is the gap between culture and technology? According to Damas, entertainers have passions that brands and companies may not be aware of, and...

Copyright © 2020-2021 GenBiz. GenBiz is owned and operated by owned by the Foundation for American Content and Entertainment, a 501(c)(3) non-profit organization.