Employment Outcomes for College Graduates since the Great Recession
Job-finding rates and wages fell for new graduates entering the labor market in 2009 and 2010, but poorer prospects for young workers actually began before the recession and continued through the recovery.
There has been a substantial deterioration in the employment prospects of recent college graduates, Jesse Rothstein finds in The Lost Generation? Labor Market Outcomes for Post Great Recession Entrants (NBER Working Paper 27516). Cohorts that graduated during the period of economic weakness following the recession, which ended in 2009, had trouble finding toeholds on job ladders and generally have had weak earnings trajectories. However, this phenomenon is not simply a result of the recession. Graduates who entered the labor market beginning around 2005, as well as those who entered in the economically stronger period 2011–19, have had lower employment rates, relative to older workers in the same labor market, than earlier entrants. Something appears to have changed in the labor market, creating negative effects on new generations' employment rates.
Most Stimulus Payments Were Saved or Applied to Debt
Rothstein studies the early-career economic outcomes of college graduates in the period between the Great Recession and the coronavirus-related economic collapse. He uses repeated cross-section data from the monthly Current Population Survey to examine individuals born between 1948 and 1997. He observes them at ages 22 to 40, between 1979 and 2019. His primary indicator is weekly employment.
— Lauri Scherer
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