Unemployment Among College Graduates: Causes And Effects
World’s economy spins in circles. Periods of economic growth replace eras of decline in productivity. What’s considered normal in expert circles profoundly affects people’s lives.
Great depressions bring about the loss of jobs for many. Companies don’t hesitate to sack people to cut expenses. Fast-forward a bit, and things go back to normal as markets begin to recuperate.
However, dozens of factors influence the world’s financial or monetary dealings. Today’s students have more trouble landing a solid job than ever.
New technologies are changing the game, while unpredictable events resembling pandemics typically put the whole planet to a halt. As a result, it’s worthwhile investigating the hidden elements that trigger these trends.
Factors Influencing Unemployment Among College Graduates
Creators of national policies always emphasize the importance of GDP growth by constantly creating more jobs.
More employed folks mean more cash being injected into the country’s economy. Money is the blood that keeps a nation alive. In times of prosperity, cash flow steadily increases. So does the number of young people finding steady work. During bad times, the highest unemployment rate hits the streets.
Unsurprisingly, the cash flow comes to a halt. That’s bad news for business. Important factors play a role in stimulating or discouraging market growth. The most dominant variables incorporate:
Pandemic’s Effect on the Unemployment Rate
Not surprising, but the supply and demand in any job market dictate who gets the position.
It’s a complex topic, with an ongoing debate on regulation mechanisms to secure long-term stability. It seems like, regardless of what we do, our markets will crash eventually.
In late 2020, the unemployment rate of college graduates skyrocketed. More than 25% of them were left with useless diplomas in their hands during quarantine. Of course, no one could predict a deadly virus interfering with our financial markets.
A whole generation was left with no support and was raised to believe that obtaining a college degree meant something. Security or a finer chance to kick-start a promising career. It was remaining free to choose any firm they wanted.
Well, it turned out it wasn’t so. Almost 10% of citizens with an academic degree in the US were basically jobless. And that was only due to the pandemic. There are more factors playing a significant role in regulating a steady supply of the workforce.
Since this problem is more relevant than ever, there is more interest in studying it at colleges. Thus, students often need help choosing a topic when completing a written task or need help knowing where to start their writing.
As a starting point for writing an introduction for an essay on unemployment, take a look at free samples on the Mortgage Crisis or Great Depression topics, and you get a picture of the subject.
As a result of reading these essay examples, the students can easily choose a topic for their paper and choose the right words to support their arguments.
New Technologies and Lack of Jobs for College Graduates
Not even the IT sector was spared recently. Just in 2023, more than 200,000 employees were fired instantly without warning. Giant tech conglomerates use the term adjusting, but firing people is more precise.
It raises the unemployment rate for college students relatively high. The IT sector remained untouchable. Programmers and developers are the most wanted professions among students, with high average salaries and benefits for employees.
It appears that’s not the case anymore. Artificial technology is making numerous positions obsolete. Likewise, tech giants have expanded multiple businesses too much during the pandemic. Although similar strategies worked since millions of people preferred online services while quarantined, everything changed afterward.
Tech Giants Expanding Business Too Much
Demand for online services dropped, making layoffs virtually inevitable. The current situation in the global IT sector is a perfect example of how bad business decisions disrupt the balance in the job supply chain.
Also, in combination with fresh, innovative tech solutions which lower the demand for traditional high-tech experts in various fields, the situation is getting promising as effects gradually stabilize.
But still, well over 50 million adults hold bachelor's degrees in the US only. Nearly 17 million work part-time jobs that do not correspond with their education level. That’s practically 30% percent of underpaid workers who are employed on paper but technically cannot find a job in a respective field.
Baby Boomers Clinging on to Their Employment
The generation of our parents had the best working hours plus all kinds of benefits available. No wonder they hold every job even after retirement is a possibility. A lot of young people can’t obtain a chance as old school workers practice some seniority rights.
Virtually 40% of Millennials blame Boomers for creating a traffic jam affecting the labor game by putting off retirement. Multiple companies bear responsibility, as keeping skilled senior managers is seen as cheaper than investing in new talents. Such a strategy creates problems both for Gen Z and Gen X students to climb the corporate ladder.
Impact of Unemployment on College Graduates
Aside from living broke, jobless students also struggle with emotional problems, especially if graduates include single parents or graduates who owe debts to financial institutions.
College credits represent a huge problem for youngsters beginning a career straight out of college. Average pupils spend roughly 15 years paying back accumulated debts. But that’s the tip of the iceberg.
Anxiety And Self-Esteem Problems
Although experts find employment relatively quickly, research says that the average unemployment rate for recent college graduates is about 54%. The pressure is extreme, along with everyone’s expectations.
If not successful at starting a career as they envisioned, humans face psychological issues related to low self-esteem. Feeling worthless or unappreciated is not uncommon.
Also, investing to do much in one’s education and not managing to cash it in leaves people with a sense of pointlessness. After the post-covid era, more than 35% of graduates feel depressed.
Truthfully, close to 30% of employed students also feel anxious about the future. Briefly, the most spread concerns include the following:
- Low Self-Esteem
- Financial Insecurity
- Feelings of Inadequacy
- Identity Crisis
- Panic Attacks
Identity Crisis Issues
Today, most professionals identify with work and the company that provides for them. Corporations encourage team building in various ways. Westerners created an image of a successful man who has a career, a family, and some nice real estate.
Unemployment shatters a perfect image for students who don’t have a good head start. Unable to start a family and still living inside mom’s basement, many suffer identity crises. Financial independence is vital for mental stability.
In times of recession, governments have to apply solutions to help everyone go through rough times. Luckily, some measures are effectively aimed at cushioning college students' worst problems.
Strategies for Lowering the College Degree Unemployment Rate
Universities and officials look for methods to battle joblessness. Some approaches fall under the category of monetary or fiscal policy.
Others tend to the mental needs of affected parties. Applying a combination of subventions and psychological support might push things forward for numerous affected students.
Financial Aid and Subsidies
Reprogramming student loans is a first step forward. Lowering interest rates while providing extended grace periods helps anyone in debt.
Moreover, paid apprenticeships provide opportunities for starting careers in nice companies. Offering financial support and encouraging younger people to become self-employed entrepreneurs is a promising practice.
Lastly, organizing workshops aimed at learning fresh skills is critical too. When markets go down, changing careers is the only way out. Although it resembles a hard choice, it’s a way to become free again for many.
Creating new opportunities by attracting investors works well in politically stable countries. Apart from financial aid, graduates need some emotional support. Families, friends, and institutions have to be involved in helping them through the rough times.
Support and Counseling
Receiving short-term monetary gains doesn’t benefit in the long run. People need reassurance and plans for the future. Standing stuck in a vicious circle of unemployment leaves emotional scars. Getting support from close friends in transition periods is crucial.
In reality, institutional support means more than providing occasional subsidies. Job counselors should always present plausible alternatives to interested students and devise plans including numerous necessary steps one has to take.
Getting closer to one’s dream job typically requires learning extra skills, especially in the IT industry. Organizing workshops or courses is an example of useful and practical aid. Other measures include:
- The internship programs
- Organizing Job Fairs
- Teaching Interview Techniques
- Explaining CV Writing Methods
- Soft Skills Training
Final Thoughts on The Problem of Unemployment
Today’s market is tough. Maybe cutthroat is a better word. The competition is fierce. The latest technologies threaten existing jobs, while large multinational companies only care about profit.
Sudden crashes trigger recessions, which leave thousands of people jobless overnight. Adapting to contemporary rules isn’t easy. Young adults face an existential crisis while trying to find a place in the world’s unique economy.
Although the markets recuperate over time, it’s a slow yet painful process for many. Finding mechanisms to assist students in overcoming an important transition period is crucial.
Giving institutional support helps a lot. Still, some encouragement and motivation usually provide all a person needs to move on and start searching for another career opportunity.
