New university graduates face difficulty in finding more difficult work, despite their high degrees, which usually give job seekers in the labor market.
This is according to a new a report From Oxford Economics, which shows that graduates of unemployed universities represent 12 % of 85 % in the national unemployment rate since mid -2013. This is a large number, given that this group constitutes only 5 % of the total workforce.
Moreover, the unemployment rate among workers who recently graduated from the college ranges between 22 and 27 years old, approaching 6 % – higher than the national unemployment rate of 4.2 %.
“People who obtained a bachelor’s degree or the highest unemployment rate higher than the national average, and this is the first time that this happens in 45 years of data,” Matthew Martin, US economist at Oxford Economic, told CBS Moneywatch.
He said this is noticeable, because “those who have a higher educational investigation usually have better prospects than their counterparts with less.”
So why do new university graduates face more difficult time to find a post -college work from previous graduation classes?
While the report refers to several factors, it finds that the slowdown in employment in the hot sectors leads to the growth of unemployment between the holders of grades.
“The high unemployment rate in the last graduates is largely part of the incompatibility between increasing the supply of new graduates in the areas where the demand for business has decreased,” according to the report.
This is especially true in the technology industry, where more university students graduate with certificates in computer science and related fields more than any other major.
“Employment prospects will remain small for these individuals, while maintaining the high unemployment rate in the near term,” Oxford researchers in Oxford wrote in the report.
The technology sector focuses
Computer science is among the fastest fields of study among university students, according to The National Center for Education Statistics, but jobs in the sector are especially vulnerable to replacing automation. recently Progress in artificial intelligence The workers in this field are also presented to become outdated.
Martin said: “There is a mismatch between demand for business and the offer of employment in general,” Martin said. “It is very focused in the technology sector.”
The industry was rented in a quick clip when the economy was reopened after birth, before Retreat. These cuts are likely to affect the current unemployment rate, according to Martin.
“Some of them could be normalized after increasing the employment of the technology sector at the end of the epidemic around 2021,” he said. “But there is also evidence that artificial intelligence has begun affecting the minimum computer science vehicles,” he added.
Martin pointed out that the experienced workers who graduated in computer science degrees, but they have achieved more than a few years of experience extending well. Those who do this type of minimum work, and the shell that is already enjoyed by artificial intelligence, who see an inconsistency between the number of available jobs and the supply of the workers they are looking for.
Martin said: “Some companies may be fruitful for workers who have and do not want to increase costs in general by employment. It may also be higher accreditation rates than artificial intelligence,” Martin said. “At the present time, it appears to be a little from the two.”
Uncertainty slows employment
Economic uncertaintyRightly paid by President Trump, aggressive, but constantly changing Customs tariff agendaIt also leads a number of companies to pressure grow and invest. For this reason, the unemployment rate among new university graduates can continue to overcome the rise, according to Martin.
“We are heading to a period in which the uncertainty is truly high,” he said.
Although new university graduates who have obtained a work are not demobilized at higher rates than the rest of the workforce, Martin does not expect things to become easier for young graduates to search for work, in the absence of employment by technology companies or collective exit of workers from the workforce.
“There is some softening in the demand in general, but many of them are currently concentrated in new university graduates, and we are looking for a high unemployment rate,” he said.
The effect of “missing labor”
When qualified workers try to obtain scientific degrees and failures to find work in their required field, they tend to continue to search for work, and sometimes search for a job in another sector, rather than withdrawing from the workforce, the report explains. This can lead to finding educated workers in the college “who suffer from work lack”, or in roles where 50 % of workers who occupy them have no bachelor’s degree or higher.
This scenario can calm them for years: workers working at work tend to stay as well as the rest of their career, according to a report.
