College grads avoid brunt of layoffs
For one group of workers, the recession hasn’t hit quite so hard.
Their unemployment rate was nearly half the overall workforce in December. When they do lose jobs, they tend to find work more quickly than others. Their wages are higher, and they typically have enough savings to survive between jobs.
Yes, it still pays to get a college degree.
Despite recent high-profile layoffs of bankers, accountants and other highly educated workers, college graduates are faring much better than the labor force as a whole. For December, their unemployment rate was 3.7 percent, compared with 7.2 percent for everyone regardless of academic pedigree.
The reason is simple: A degree usually leads to higher-paying, more stable jobs. And if that job goes away, a highly educated worker can always take a step down the career ladder. Or, they may not have to.
“We’ve made a big committement where we’re still recruiting on campus,” said Jennifer Allyn, managing director in office of diversity at PricewaterhouseCoopers. “We hired 3,000 people last year and we plan to do the same this year. It’s not like it’s going into a deep freeze.”
College grads “have a privileged position in the labor market,” said Lawrence Mishel, president of the Economic Policy Institute in Washington.
Jan 12, 2009 at 10:04 a.m.
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Yes, tech collges do offer skills and opportunities. They are very specific, though. Universities tend to produce a more well-rounded academic. While many sit and spew that social science or humanities degrees are obsolete, I ask you to contemplate what society would be like if everyone avoided these disciplines? As a history major, I'm appalled at the lack of understanding my generation has regarding their countries history.
Jan 11, 2009 at 6:54 p.m.
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ekim wrote - "...when all these folks graduate from a tech college in 2-4 years, where are they all going to work?"
Ah...but if they DON'T go to a tech college, where are they going to work? Tech colleges offer skills and more opportunities. A lot depends on what they pursue. Just a thought.
Jan 11, 2009 at 3:36 p.m.
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It's not the degree that makes the difference, but the person getting it. In the very long term they pay off, but then money isn't everything. If you're going to school to make more money, you're going for the wrong reason. Sounds backwards in this economy, but then when all these folks graduate from a tech college in 2-4 years, where are they all going to work?
Jan 11, 2009 at 2:32 p.m.
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It depends on the degree. An associate's or bachelor's will almost immediately pay off in higher earnings, and professional degrees are all but a guarantee of success, but liberal arts and social sciences graduate degrees tend not to pay off as well or quickly. But overall, lifetime earnings prove that degrees are worth it.
http://articles.moneycentral.msn.com/Col...
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Whether a degree is a help or hindrance in getting a particular job is much more of a case-by-case situation. But when jobs are scarce you're still better off with than without. You can always "trade down" but it's a lot harder to "trade up" (get certain jobs without a degree).
Jan 11, 2009 at 2:09 p.m.
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oh here we go with more BS about getting a BS. I just graduated with my business degree last may and it is true I am employed. Im working in a warehouse making $12.00 an hour because I couldnt find a job in my field. Have these idiot reporters possibly considered that there are many college grads who are working but are grossly underemployed?
Jan 11, 2009 at 1:26 p.m.
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Not everyone is cut out to read Shakespeare or study Quantum Physics. But even for those who aren’t, there is still a demand for skilled, educated workers. Education beyond high school, whether in a 4-year college or in trade school, is almost a necessity today.
Recently I talked with an acquaintance who runs a large auto body shop in an urban area. He says he has more business than he can handle because so few are willing to put in the time and effort it takes for the training. Says two of his workers earn almost $80,000 a year, both trained technicians who went to 2-year trade school. “Of course they know how to hustle,” he said. "It's hard work and they have to hustle."
That’s just one example. There are many more. Plumbers, electricians, personal care aides, medical assistants - there are so many jobs that just can’t be outsourced to China. I hope those who have been laid off from GM use the chance to go back to school – trade school or college. It’ll be worth the sacrifice.
Jan 11, 2009 at 1:18 p.m.
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Sometimes an advanced degree keeps you from getting hired, because it's cheaper to hire someone fresh out of school..
Jan 11, 2009 at 12:22 p.m.
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Life is hard. Its even harder if you're dumb. It pays to get an education.
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