The unemployment situation for college graduates may be worse than you think. Sam Ro of Business Insider reports on a note to clients from Goldman Sachs’ economist Jan Hatzius that tells a troubling story. As reported by Ro:
“The labor force participation rates of college graduates have actually fallen by more than those of workers without a high school education,” wrote Hatzius.
Hatzius finds (not surprisingly, in my opinion): ”[T]he faster job growth among college graduates is entirely due to faster growth in the size of the college-educated population; the employment/population ratio among college graduates has in fact fallen sharply.” Ro observes:
In other words, America’s colleges are cranking graduates so quickly that even though increasing numbers of them drop out of the labor force, the unemployment rate has effectively fluctuated right in line with the unemployment rate of those with less than high school degrees.
So Hatzius compared employment rates relative to the populations of the two demographics (those with and those without a college degree). Here is what he found: Continue reading