SMM News: July 22 news, data show that the unemployment rate of recent college graduates in the United States with bachelor's degree or above climbed to 13.3% in June this year, an all-time high.
According to data released by the New York Fed, the unemployment rate of fresh graduates (aged 22 to 27) with a college degree or higher climbed to an all-time high of 10.5% and 13.3% in May and June this year, compared with a peak of 7.9% in December 2010, 5.3% in February 2002 and 5.1% in November 1992.
It is worth noting that the unemployment rate for new graduates in February was only 3.8%, compared with an all-time low of 2.1% in November 1997.
By contrast, the unemployment rate for college graduates with a bachelor's degree or higher (aged 22 to 65) also rose to record highs of 6.5% and 7.9% in May and June, up from 2.1% in February.
Economists believe that if there is a recession, young workers and fresh graduates may be the hardest hit.
The data show that in May and June, the unemployment rate gap between fresh graduates and college graduates as a whole was the largest, reaching 4 percentage points and 5.4 percentage points respectively. As a result, college graduates who have just entered the labour market and are trying to develop their vocational skills have been hit harder.
Analysts say the new crown crisis may challenge the conventional wisdom that having a college degree provides higher job security. So in the coming months, hiring and economic recovery will reveal the true value of a four-year college education. Affected by the epidemic, some American college students are already considering dropping out of school.
Usually, highly educated people are rehired first, and the stronger the economy grows, the more likely it is to bring well-educated people into the workforce. In the final analysis, the high unemployment rate of young workers and fresh graduates may push Congress to pass a new round of stimulus package as soon as possible. Unemployment in both categories is already worse than it was during the Great Recession, so the US government does not want it to have the same lasting damaging effects.
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