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Posts Tagged ‘college graduates’

The Great Recession came and went, and so did salaries and other compensation for people graduating with four year college degrees. The corporate news media continues to shower us with propaganda about why this has occurred.

Bloomberg news claims “technology and automation” have caused this decline. Only in the United States does there appear to be a problem with automation. It is strange how there is an overabundance of US manufacturing jobs in China, Vietnam and elsewhere. Those factories employ accountants, bookkeepers, managers, attorneys, and many more white collar employees. Those factories also purchase things from other local businesses that supply materials and designs and other things that employ white collar workers. Those factories used to be in the United States. And now they’re not. See https://www.bloomberg.com/news/articles/2017-03-30/u-s-college-grads-see-slim-to-nothing-wage-gains-since-recession

Those H1-B visa’s are also putting downward pressure on wages, as well as exporting high tech jobs to India and other nations.

Exporting jobs overseas by the tens of millions is why wages have declined on average for new college graduates, and why compensation has stagnated for older workers, and why wages have declined over the last thirty-six years. There are other reasons, but automation is not one of them. See Jobs: The Largest US Export Product–JohnHively.wordpress.com

As for those declining wages for new college graduates, what you study matters for your salary, the data show. Chemical and computer engineering majors have held down some of the best earnings of at least $60,000 a year for entry level positions since the recession, while business and science graduates’s paychecks have fallen. A biology major at the start of their career earned $31,000 on an annual average in 2015, down $4,000 from five years earlier. Some majors, such as petroleum engineers, have seen a bump in earnings for those just coming into the job market.

On the other hand, people with graduate degrees are still getting a bump in their salaries upon graduation.

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In The Rigged Game, I wrote that the negative impacts of each successive recession would continuously get worse for a growing number of people because of growing income and wealth inequality, and a new study by the Economic Policy Institute (EPI) shows this is the case.

Also note that the policies espoused by both Hillary and Bill Clinton brought this situation about. These policies include international income and political power redistribution scams they marketed as free trade agreements, such as NAFTA, giving China most favored nation status, and the South Korea, Panama and Colombia free trade agreements. These scams redistributed trillions of dollars from working Americans to rich fat cats as tens of millions of jobs were shipped overseas.

Now there is an approaching economic storm that will strike sometime between October 2016 and June 2017. The economic impacts of the coming recession will be worse than the last recession.

Some of the findings by EPI include:

  • Unemployment and underemployment rates among young graduates have improved but remain higher than before the recession began.
  • Unemployment of young graduates remains elevated today, but not because of something unique about the Great Recession and its aftermath that has affected young people in particular. Rather, it is high because young workers always experience disproportionate increases in unemployment during periods of labor market weakness—and the Great Recession and its aftermath is the longest, most severe period of economic weakness in more than seven decades (Italics mine).
  • The vast majority (65.8 percent) of people age 24–29 do not have a college degree. Access to good jobs for these individuals is especially critical, as stable employment allows them to build a career or pay for further schooling.
  • In addition to the unemployed (jobless workers who report that they are actively seeking work), the underemployment rate also includes those who work part time but want full-time work (“involuntary” part-timers), and those who want a job and have looked for work in the last year but have given up actively seeking work in the last four weeks (“marginally attached” workers).
  • For young college graduates, the unemployment rate is currently 5.6 percent (compared with 5.5 percent in 2007), and the underemployment rate is 12.6 percent (compared with 9.6 percent in 2007).
  • For young high school graduates, the unemployment rate is 17.9 percent (compared with 15.9 percent in 2007), and the underemployment rate is 33.7 percent (compared with 26.8 percent in 2007).

Now we are hurtling into the worse recession since the Great Depression, and the results of the following boom period will be more egregious than the pathetically weak economic expansion after the Great Recession, which lasted from 2009 to late 2016 or early 2017. Income inequality is the big culprit in this explosion of poverty in the midst of plenty because your government actively works to redistribute income from the 99 to the 1 percent via such things as trade agreements, which are really income redistribution agreements.

Click on the following link for the complete EPI study.

The Class of 2016: The labor market is still far from ideal for young graduates

for more on the EPI study.

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College graduates are facing a life time of indentured servitude to the one percent. That’s what the student loan scam is all about, and that’s what free trade treaties are all about. When the government ships jobs overseas via free trade treaties, the difference between the old wages here and the new wages there go into the pockets of the one percent via higher corporate profits, rising dividends and soaring share prices. In other words, these treaties are a bunch of income redistribution scams. So are student loans.

The Associated Press reported that the job outlook for college graduates in 2012 is bleak. One out of two will be underemployed or unemployed. The report doesn’t mention why. The reason is simple. The jobs have been shipped overseas. The list of jobs gone or going away via free income redistribution treaties is long; jobs in manufacturing,computer programming jobs, engineering, call center jobs, and way more.

It’s easy to understate what we lose with the loss of manufacturing jobs. Every seventy jobs making stuff with your hands supports about thirty other kinds of jobs, like management, accounting, book keeping, attorneys, computer programmers, engineering, etc…. You ship away seventy manufacturing jobs and that means you ship away thirty other jobs that usually require a college degree. That doesn’t count all the engineering and computer programming jobs not directly associated with manufacturing employment. Those jobs are being shipped away, as well, at least a fair percentage of them.

This means the federal government is redistributing much of the tax base from working people to Wall Street and the wealthy by shipping away the jobs that support public services. This is why there are routine and continuous cut backs in education (teachers), librarians, nurses, counselors, accountants, lawyers, public administrators and other jobs that require college degrees. That’s what free trade does; it freely redistributes income and wealth, turning the rich into parasites and the 99 percent into the hosts.

The kids getting out of college today not only have dim job prospects, but they also have a ton of debt via student loans. The government wants to offer students more loans rather than grants. The reason is simple. The loans are bundled the same as home mortgages, and are then sold to Wall Street brokerages like Goldman Sachs. Investment firms slice and dice the government guaranteed loans, and then issue bonds backed by the loans. When students make their payments, most of it winds its way into the pockets of the bond owners, which are almost always members of the one percent. Remember, because the US government guarantees student loans, the bonds backed by student loans are also guaranteeing large profits to the one percent, with absolutely no risk of loss. None. Zero. That’s a pretty good scam.

He who has the gold makes the rules. That’s why grants are limited nowadays more so than in decades past. Student loans are where the money is. There is more student loan debt outstanding than total US credit card debt. And that pile will continue to grow.

One of the reasons for this continued growth are free trade treaties. As more free trade treaties are enacted, more of the tax base will be shipped overseas, state governments will be forced to raise tuition, which will force students to take out more student loans, which will force them into ever longer periods of indentured servitude to the wealthy, who have more money to buy politicians, who then enact more free trade treaties, which force state governments to raise the price of tuition, and hopefully by now you see all the interacting relationships.

On other point needs to be made; student loans have nothing to do with providing an educated work force. They’re all about redistributing income from the 99 percent to the one percent. Just like free trade treaties. They both financially weaken the 99 percent to strengthen the one percent.

And that’s why every member of the ninety-nine percent should call their congressmen and senators and oppose the largest free trade treaty since Nafta, the Trans Pacific Free Trade Agreement. That’s a treaty being negotiated by the US government to continue to redistribute income and wealth from the 99 percent to the one percent.

Associate Press Report on the Job Propects for College Graduates

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