Why at least half of 2020 College Grads in the US are still jobless?

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There is a massive number of 2020 graduates struggling to get their careers off the ground, or even land a decent job, following the pandemic’s epic hit to the US job market. The fallout may also cloud the employment picture for the class of 2021, which is entering the labor force at a time the nation’s jobless rate remains elevated. However, competition for entry-level positions is stiff, with recent grads competing with young professionals who were laid off during the health crisis and who are now seeking to reenter the job market. An economist at the Upjohn Institute in Kalamazoo, Michigan, Brad Hersbein said, “There is definite crowding in the market. The people who last year didn’t get the job they wanted to displace less-educated workers in jobs that didn’t require a bachelor’s degree”.

Hersbein added, “Now they are still looking to get into a better job, but are competing for the same positions the class of 2021 is going for”. A recent survey shows 45% of 2020 grads said they are still looking for work. A recent Pew Research Center analysis of federal labor data also found that at least 31% of 2020 graduates were unemployed last fall, well above the 22% for 2019 graduates. However, recent college grads often have higher unemployment rates than more seasoned workers. The New York Federal Reserve data show the jobless rate in February 2020 for all grads stood at 2.1%. But, the jobless rate for recent graduates, or those between 22 to 27 years old, stood at 3.9%.

December 2020 data shows the jobless rate for recent grads was 7.2% and it is far higher than the 4.7% rate for all college grads. A chief education strategy officer at job-site Handshake, Christine Cruzvergara, said that the US job market has improved for recent college graduates, in spite of such obstacles. She said, “Many of us hadn’t anticipated that we would rebound so quickly. That is extremely positive, there are jobs out there. You have to make sure you are prepared, and you have to do your research”. However, the prospect of entering the job market this year was a source of anxiety for most students. Other recent college graduates are cobbling jobs together to make ends meet. Most have lined up a series of jobs, such as teaching as an adjunct professor.