Graduation. A time of time of joy, bittersweet goodbyes, anticipation, new beginnings. Well usually, but for many recent new graduates, it’s also a time of frustration. This year, many new graduates are struggling to find jobs, despite what is generally seen as a strong U.S. economy with a prolonged relatively low rate of unemployment. What gives? It’s complicated. While unemployment rates are indeed low, many companies are pushing pause on their new hiring, especially for the types of jobs usually filled by new graduates. During the uncertainty of the covid pandemic, many companies struggled to find ways to keep employees. Indeed, the term “Great Resignation” was used to describe the period during which many people reconsidered their priorities, often leaving their jobs to focus on other passions. As the world began to emerge from the lockdown, companies struggled to maintain staff levels, often hiring with abandon, hoping to keep their workforce numbers intact.
Now, as the global economy has moved to a more stable situation, many companies are reevaluating their labor needs. Some companies are shedding excess positions and others are realizing they don’t need to add to their workforce as quickly as before. In a move that’s particularly challenging for those looking for their first postgraduate job, many companies are now demanding several years of experience even for starting positions. Some new graduates are finding that they’ve had to lower their expectations in terms of salary, job responsibilities, and geographic preferences. Others have been forced to take on extra work just to make ends meet. Many are frustrated that their years of hard work at university are not paying off as anticipated. For now, it’s unclear just how long this business cycle will last, but if you’re looking for your first “real” job, the end likely cannot come quickly enough.
Discussion Questions:
1. Discuss the shifts in the labor market that have led to the current challenges facing many new graduates. Why is the current business cycle so problematic for those looking for post-graduate employment?
2. How does unemployment differ from underemployment? What are the economic implications of unemployment and underemployment? What are the noneconomic costs of prolonged unemployment or underemployment for today’s new graduates?
Sources| WSJ: https://www.wsj.com/lifestyle/careers/white-collar-college-educated-workers-jobs-c594c29a?mod=hp_lead_pos4; Forbes: https://www.forbes.com/sites/jackkelly/2024/02/15/why-is-it-so-hard-for-recent-college-graduates-to-find-a-decent-job/; NY Times: https://www.nytimes.com/2024/05/31/opinion/college-graduates-jobs-unemployment.html; CBS News: https://www.cbsnews.com/news/jobs-hiring-college-grads-class-of-2024/; Unsplash: Photo by Keith Luke on Unsplash