It Must SUCK to Graduate Right Now
Nate Loewentheil, Roosevelt Institution
Karlo Barrios Marcelo, Future Majority
The heat of the youth joblessness crisis is set to spark a country-wide economic wildfire as students graduate and youth of all backgrounds go in search of their first jobs, internships and other summer opportunities.
As high as the stakes might be, some in Washington are out of touch. Political talk about burdening future generations with the debt accumulated from government spending misrepresents the economic reality of young Americans. We're being burdened with debt right now. More than two-thirds of all college students graduate with debt, and the average student owes more than $22,000. And that doesn't count the more than 20% that owe $7,000 or more to credit card companies.
College is an investment, and in ordinary times we would rely on our earnings to pay off these loans. But these are no ordinary times. Students who graduate during a recession earn 9% less than they could have expected during flush days. And, according to a study from the National Bureau of Economic Research, the earning impact lasts a full decade.
READ AGAIN: Students graduating right now will not fully recover for ten full years.
It's hard not to agree with economists who suggest that today's young Americans are the first generation that will be less well-off than their parents.
It's true that everyone is suffering right now, and many people need help. But young people are being hit the hardest. Youth unemployment has risen for the 8th straight month, according to the Bureau of Labor Statistics, and is more than 9% higher than the rest of the working-age population. If we are serious about maintaining the promise of the American dream, then we need to harness the unique skills and experiences of today's youth and help put them to work.
We're not helpless. Young people are eager to join the workforce, and willing to go out on our own when jobs aren't available. This morning, USA Today wrote young entrepreneurs innovating to meet the demands and challenges of the moment.
But that's not enough. We can't expect all young people to launch their own ventures. We need public action. We need to match the investments that young people are making in themselves, and help our generation build the new economy our country needs. We're well positioned: our generation, 80 million strong, is diverse, technologically savvy and climate-conscious--a perfect match for the global economy in which we must compete and collaborate.
Some leaders are finally responding. For example, Governor Schwarzenegger launched a California Green Corps last March, which will connect at-risk youth with green jobs training. Conceived as a public-private partnership, corporate sponsors have not yet committed any funds to the pilot program.
On the opposite coast, Governor Patterson has come out in support of youth employment. Federal stimulus money is starting to makes its way into state budgets, and New York will receive nearly $100 million, all of which will go towards combating youth unemployment. These are just temporary jobs, however, so the long-term plan of training and incubating is still missing.
But states are not enough. We need federal action to encourage young entrepreneurs, to increase job training, to ease the burden of student debt and to provide support for areas of economic growth where young people will add the most value. Critical areas of our economy can be filled by our generation; we're ready to build new technology and communication systems, launch green businesses and create a new preventative health-care system--we just need a little boost. Our future will be built by our generation--let's make sure we have the foundation we need.
If you're interested in joining the effort to economically empower young people, check out www.80millionstrong.org. Our mission is to unite young Americans to own and direct their own economic reality.
Loading comments…
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
Actually, it is probably a good opportunity for many graduates to go do those things that many of us don't do until we are retired. Go find a good non-profit that needs help and work there pro-bono until the economy turns around. If you need some walking around money, then get a part-time job at something like McD's. Live at home (with parents) for a while.
Oops -- with regard to the book on job search I mentioned in previous post, "Job Coach for Young Professionals," try this link: http://www
I was telling someone yesterday that I feel part of both sides of this -- I'm in my 50s (BUT -- employed! And so is my husband), with one daughter who will graduate from college in a year and two younger. We have friends with kids graduating now and it's a horrible time. Colleges are telling kids to go right on to grad school (this is great, if you have the money. Many do not and they're in debt from college.
All that said, there ARE jobs available. One kid I know got a teaching job -- a good one. I'm sure at least part of that is because it's much cheaper for districts to have new, inexperience teachers than older ones at the top of the salary scale.
My gift this year to college grads is the same: something for the new apartment and a copy of a great book on searching for a job, "Job Coach for Young Profession
Good luck grads! I feel for you!
WHAT!?!?
These kids are from the generation of "give the kids anything they want."
I graduated in 1984, that year sucked too. I had NO resources from Mom and Dad, but WORKED through high school to save up. When Mom and Dad needed half those funds I had saved to save their house, I gladly gave it. After 4 years of college, I ended up with $4000 debt. I worked through college, even working 52 hours the week of my senior year finals. I KNOW what it took to get through. No credit cards, No clothes that were the latest styles. No spring breaks in Florida. It was hard work. Period.
Today's kids don't know the value of a dollar. They got to choose to play soccer instead of working through high school to save for college. Their parents bought them a car when they turn 16. I have seen it all. They are going into shock because they have never ever been told NO.
Well, I now find myself unemployed too. Am I sitting on the side lines, crying? NO! I am working for NO money at a local PR firm so that I can be exposed to a lot of new companies. I am doing whatever they need done. INCLUDING making their coffee and walking their dogs.
You do what you have to do. That is the skill that these new graduates need to develop. Good luck after years of being coddled. No more hand outs.
I take issue with that comment. The spoiled and coddled are like the rich in this country a small fraction of the population. There many people out here like myself who 1 did work throughout college, 2 Recieved little financial help 3. Get work anyway they can and try to better themselves. The middle class our parents enjoyed were helped by the industrial boom and the GI Bill which created one of the largest and most educated middle classes in human history. I don't want a handout I want the opportunity to succeed.
agreed w. tega jessa.
I agree with you except there are some kids like me who have worked since they were 13 and have paid for everything they own. I own over 7 vehicles and my own trailer house and plan on going to the guard and then going to college. So some of do have morals of what it would be like to pay our own bills.
You are like I was at your age. Worked hard and know the value of what you work for. Again, you are the exception.
Congratulations. You will be ahead of the pack.
It sucks for all of us that are unemployed right now. But I'll tell you what - I'd rather be young and unemployed than over 50 and unemployed. New college grads have their lives ahead of them. Probably most of them can go home and live with a parent/parents a lot cheaper than those of us with mortgages, and parents that are deceased. Just remember that employers would rather hire someone young that they can mold, that won't be a burden on their healthcare costs, and will work for a lot less to get their foot in the door. So cheer up, enjoy your youth, and don't forget the lesson you learned of how our country got into this mess when you vote in the next election.
I hear you. Even to be over 40 right now and unemployed can be a death warrant. College grads and other younger people will work cheap, and dont have any real ideas about what a job is suppose to be life, or any concept of work place laws yet, so they can be used. So many companies are replaced the older higher paid worker with the lower waged worker. Even at the risk of losing the experience and knowledge that elder worker has of the company and its operations and customers. Because the instant gratification of a little more profit now is more important to a current CEO than what shape the company is in when the next CEO is trying to trash it up for his instant personal profit.
Im not saying the younger grad or non grad doesnt have a lot to offer. But ditching the older just for the lower waged entry worker is not right.
"This year unlike any year in recent history college and high school graduates with grandiose dreams will find themselves moving back home with mom and dad. A recent survey of college career placement counselors indicates 22% fewer of this year’s graduates will have landed a job by graduation compared to last year. Most companies have hiring freezes even if they haven’t actually laid workers off yet. While companies will replace a key experienced employee they are not generally hiring new workers. In fact the anecdotal evidence is much worse. At some colleges 20% of graduates have jobs, 20% are heading off to grad school, and 60% have no set opportunities. This will have a significant impact on both upcoming unemployment and the housing market.
In the Great Depression not nearly as many young people attended college, junior college, or professional training schools as do today. This June the Labor Department number crunchers will make a seasonal adjustment to unemployment that assumes the same percentage of these graduates will have found employment opportunities as in previous years. Later in the year the unemployment survey will begin to pick up that many of these new workers seeking full-time work are unemployed. But importantly it will count as employed those working part-time yet living at home with mom and dad. This is because part-time workers are counted in the commonly reported U-3 unemployment rate as employed even if they are seeking full-time work."
http://www
brief encounter with real people..I mean
Perhaps these graduates could think about something other than how to enrich themselves financially at the expense of others, particularly the Harvard graduates. Maybe they could do some volunteer work, join the Peace Corps, enrich themselves and the world in other ways than pecuniary. With this brief encounter with brief, they can then get jobs that will enable them to make the world a better place.
I graduated in the 1991 recession, and I don't think I've ever completely recovered financially, it set me back so far right out of the gate. I did volunteer work in my field at the time in addition to my day job to try to bolster my young resume, but that never really helped me, because no recruiter ever counted it in my favor.
Why would a recruiter count volunteer work in your favor? At best it shows that you are an idealist (NOT GOOD!) or it shows that you are not focused. Either way, you lose.
The best thing to do if you want to volunteer is to leave it off your resume. You know, you parents know, your friends know and God knows. They will all count it in your favor. That has to be enough.
WTF???
You are saying being a volunteer shows you are a idealist??
Never heard anything so ridiculous in my life,.
I also graduated at an economically inopportune time, 1970, followed by a decade of financial unsteadiness. It wasn't pretty, but I survived.
If you've got a lot of student debt, read the story the article links to in the second paragraph http://www
Income-Based Repayment - which becomes available on July 1 - may lower your monthly payments on federal student loans, and forgive any remaining debt after 25 years of payments. There's a calculator at www.ibrinf
This is a good opportunity for new grads. No I am not on crack. I graduated in 1982 when Reagan was President. We were in the same boat you are in except we have a smart, forward looking POTUS much like Clinton. I believe in the next four years there will be opportunities for you...Keep you eyes open, take advantage of not having children or a spouse and do volunteer work, you can continue to change this country or even the world. If you think there are no opportunities then there will be none...or you can keep looking for those opportunities. The choice is yours. It did take me almost ten years to get the ideal position I wanted....
if clinton was so forward looking why did he let Bin Laden live to attack us.
Bush also could have done something. Get your facts straight.
It does suck to graduate right now. There are no jobs. Today's graduates won't have the money to pay off their student loans, but once they do in 10 or 15 years time, nobody will be living in houses with yards anymore, everyone will be living with condos. By the time they're settled in a career, the United States will be attacked again because people didn't listen to the likes of Barack Obama in 2002. After the economy is completely destroyed, people will try to flee the United States but that won't always be possible because people in this country complain and whine about immigration, not having the imagination to realize that we may have to go to Mexico or Brazil some day. The militarists will have gotten everything they want, but we will doubtless suffer the fate of the homicidal tribes of Ecuador, the German Nazis or Japanese militarists or just basically people who live by the sword. Chances are, after the retaliation for Iraq, Afghanistan and the War on Terror, many people in this country will become stateless and the United States as we know it will cease existing
; our country will look like Cormac McCarthy's The Road, the author who got freaked out by the Mexican border before everyone else did. Essentially, an American graduate these days has no future and knows it. His future has been determined by a small group of Wall Street Executives, bankers, Congressmen and women, defense contractors, militarists and government officials.
Why don't you get a head start on the rest of us and leave now?
To paraphrase the late great immortal business genius Thonton Melon, "Kids, it's rough out there. Move back in with your parents. Let Them worry about it."
My mother didn't file her taxes so I couldn't get financial aid to go to college. I ended up working two jobs (one full-time and the other part-time), six days a week, for 10 1/2 hours a day and living with my grandparents. I made $4.50 at both jobs. I was such a hard worker that the college-educated managers joked that they thought I was on crack. Since I didn't have a degree the idea of getting a real promotion was ludicrous to them. I tried to improve my lot by becoming a waiter and received quarter tips from people who would come in to sit, smoke, and drink coffee for two hours. I moved to another restaurant and worked 11 hour days, skipping lunch to avoid being cycled out, and didn't bring home much.
After that, I got a job at UPS sorting packages at night. I'd drive across a large city to work a four-hour shift and then be sent home whenever the manager decided there were too many workers. Because my grandparent had died, I lived in a dangerous inner city neighborhood where gun shots and ambulances at night were routine. I was amazed that my car wasn't stolen or broken into. I was so thin people accused me of being anorexic and I eventually had to resort to drinking expired Ensure cans that my aunt brought from her hospital job to feed her cats with.
You must be logged in to comment. Log in or connect with
