Recession + College Grads = Unemployment

At the start of the Recession in December 2007, the unemployment rate was 5.0 percent, and an estimated at 7.7 million Americans were unemployed. Now, just two years later, the Department of Labor reports that these statistics have nearly doubled; the unemployment rate at 10.0 percent and the number of out-of-work Americans is 15.3 million.

The good news is that the jobless rate remained at 10.0 percent for both November and December. But do not let out any sighs of relief yet, as just this past December the economy also dropped 85,000 jobs. So, how did the unemployment rate stay untouched after so many job losses? It didn’t.

Harm Bandholz, an economist at UniCredit Research in New York, insists that the actual unemployment rate is much higher than indicated by official numbers.

“The so-called underemployment rate — which includes part-time workers who’d prefer a full-time position and people who want work but have given up looking — rose to 17.3 percent in December from 17.2 percent. The number of discouraged workers, those not looking for work because they believe none is available, climbed to 929,000 last month, the most since records began in 1994,” he said.

By the end of 2009, the average length of unemployment reached 29.1 weeks. Among the jobless are adult men (10.2%), adult women (8.2%) and teenagers (27.1%).

College Grads Struggle through Recession

Recently, the Los Angeles Times published that the unemployment rate for 20-24 year-olds is 16 percent. Exactly 10.6 percent of those idle young adults are college graduates. What is happening?

Well, thanks to the Recession, the job market has changed. It has become a market that prefers experienced workers to newbie graduates.

Steve Kerrigan, east regional managing director of Mergis Group (a nationwide recruiting company located in Fort Lauderdale, Fla.), told the Washington Post that employers can stand to be finicky.

“The job seekers we’re seeing have stronger qualifications than we’ve seen in recent years based on advanced degrees, universities, and certifications and the reputations of the employers they’ve worked for,” he said.

As job opportunities plummet and applications spike, employers now have the easy task of picking one superior candidate over hundreds if not thousands of other competitive, overqualified hopefuls.

Some Grad Solutions

So what can soon-to-be graduates do to avoid the despair of long-term unemployment?

Take a look at what occupations have staying power. According to the Department of Labor, the majority of fast growing careers are in science, technology and health care. Find a way to incorporate these fields into your degree. More versatility equals more opportunity.

Start your own business. Yes, freelance. It could all start with just a blog or a website. Creating your own business, no matter how small, puts your name out there and proves that you are serious.

Search for internships. It is a good way to network, and could be your foot in the door.

Learn to “trade down.” Apply for jobs that you may be overqualified for. You can always work your way up.

Try a few years of grad school. Whether degrees, technical training, or expertise, more educational experience could be enough to get your resume noticed.Lastly, do not sue your alma mater. Case in point, Trina Thompson. On July 24, 2009, Trina Thompson, 27, filed a lawsuit against New York’s Monroe College, suing her alma mater for $72,000 – $70,000 for tuition and $2,000 for emotional distress. After 3 months of job-hunting, Thompson decided to sue her school for reimbursement claiming that the Offices of Career Advancement did not help her land a job. Her case is pending.