By Anthony B. Sanders – George Mason University
We know the labor market is weak even though it is now almost 5 years since the end of the recession (June 2009).
The labor force participation rate for those 20-24 is 70.2% … and declining.
Now we learn that 83% of the 2014 College Class have no job lined up after graduation despite 72.7% reporting that they were actively looking for one. This is a jump from the 80% of graduating seniors who didn’t have a job lined up at the same time last year.
These numbers don’t vary significantly, even for more “marketable” majors—81.6% of engineering, technology, and math majors didn’t have jobs lined up, and business students didn’t fare much better with 85.1% saying they hadn’t lined up jobs either.
Well, it looks like first home buyers will continue to decline as those unemployed graduates go back to living in their parents’ basements.
Plus, they now have tons of student loans to pay off (as in over $1 trillion!)
And hourly wage growth (nominal) remains depressed.