The Low Post News

May Jobs: More Hiring of College Grads

Employers in the U.S. loaded up on workers who were college educated during May.

Over 332,000 new hires in May were people who graduated from college, the Department of Labor announced on Friday.

That moved the unemployment rate for college graduates from 3.3% during April to 3.2% in May.

It also was more evidence that businesses are placing more value on educated workers, even during a time when a job advertised did not require or call for a college degree.

The recent Federal Reserve estimate found that as many as 1/3 of college graduates are working in jobs that their degree is not necessary.

Odds of finding employment are poor for people who have not been to college. That group lost jobs during May. The amount of graduates from high school that are employed dropped in May by 100,000 and their rate of unemployment increased from 6.3% to 6.5%.

In addition, more than 56,000 people who were high school dropouts lost work in May, causing that category’s rate of unemployment to jump from 8.9% to 9.1%.

A degree from college still does not mean an automatic route to being in the middle class or even being employed. Many graduates from colleges and universities are currently employed in jobs that once were given to high school graduates and even dropouts from high school.

Over 10% of all workers who were earning under $10.00 per hour last year had a degree from a college or university. This data came from the Center for Economic and Policy Research.

That group has almost doubled over the past 35 years as the population in the U.S. has become much more educated.

Even with new jobs in May increasing by over 200,000 the unemployment and underemployment rate is much higher than before the financial crisis and means that many people are still living on benefits that are far less than what they had been earning while employed.

The lack of disposable income also drags on the economy as fewer people have money to put back into the economy to help it grow.

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