I’ve been doing some data-grubbing for textbook revision, and found myself looking at employment data on young (<24) college graduates, which is provided by the BLS in Employment and Earnings. And I came up with a particular number that shows just how devastating the job slump has been and continues to be for the young.I think this is evidence enough that the boom and bust cycles, created by Federal Reserve manipulation of interest rates and money supply, are extremely destructive beyond the cycle itself.
Here’s the question: of college graduates with a bachelor’s degree who aren’t enrolled in further schooling, how many have full-time jobs?
In December 2007, on the eve of recession, the answer was 90 percent.
By December 2009, it was down to 72 percent.
As of December 2010, it had recovered only slightly, to 74 percent.
To me, that’s a tale of young lives blighted, not just in the short run but perhaps permanently: failing to get a job when you get out of school colors your whole career. And it’s still happening.
Thanks for pointing this data out, Paul.
"I think this is evidence enough that the boom and bust cycles, created by Federal Reserve manipulation of interest rates and money supply, are extremely destructive beyond the cycle itself."
ReplyDeleteKrugman doesn't make this insinuation in the slightest.
Correlation does not equal causation. Whoever is running this website really needs to sit through an economics 101 course.
We need more government to solve this problem.
ReplyDeleteUm, BTW, what do these unemployable graduates study? Krugman Economics?
BTW his 90% figure was wrong. He updated his post.
ReplyDeleteEconomic Bust does not cause unemployment? Did you go to public school?
ReplyDeleteI have a feeling that if you dig deeper you will find that well over 30% of college students should have never been in college to begin with.
ReplyDeleteCould it be that financial aid without any academic requirements produces graduates no worth hiring?
"Economic Bust does not cause unemployment? Did you go to public school?"
ReplyDeleteNot the bust causing unemployment... the notion that the financial crisis was caused by the Fed. This is the notion Ron Paul is trying to promote as well... Krugman isn't supporting that notion at all, but this article insinuates that he is. Krugman is probably the last person in the nation that would support Ron Paul-esque economics.
Even before the recession, everybody knew that a college education didn't guarantee you a job in your field of study, or even a job at all.
ReplyDelete