A recent article from Bloomberg points out that college students are continuing to have difficulty finding jobs after graduation. With the unemployment rate for college graduates ages 22-27 at 5.6%, many are still unable to find work in their desired field. In fact, according to Bloomberg:
Among 22-year-old degree holders who found jobs in the past three years, more than half were in roles not requiring a college diploma, said John Schmitt, a labor economist for the Center for Economic and Policy Research in Washington
The overall difficulty finding work in their desired field has made it so that recent graduates are willing to take more undesired positions that pay less. This fact, coupled with ever-increasing levels of student debt, has made it that recent graduates continue to have a more difficult time acting as consumers. With less disposable income, recent graduates are unable to truly participate in the economy. As earning and spending are crucial parts of any market economy, the fact that a significant portion of the population is unable to do so effectively makes it so that economic growth cannot occur as fast as many would hope.
Read More Here- “College Graduates Stuggle to Find Employment Worth a Degree” (Janet Lorin and Jeanna Smialek, Bloomberg)