Two related stories that clearly show that college students and recent graduates are likely to remain unemployed or underemployed in the continued “Obama Economy”.
Via The College Fix:
Polls show that young people, African-Americans and Hispanics voted for Obama by wide margins. Ironically, those groups are suffering more under the Obama economy than other Americans.
- The overall unemployment rate for 18-29 year olds for November 2012 is 10.9 percent (NSA).
- The unemployment rate for 18-29 year old African-Americans for November 2012 is 18.5 percent (NSA); the unemployment rate for 18-29 year old Hispanics for November 2012 is 12.5 percent (NSA); and the unemployment rate for 18–29 year old women for November 2012 is 10.5 percent (NSA).
- The declining labor force participation rate has created an additional 1.7 million young adults that are not counted as “unemployed” by the U.S. Department of Labor because they are not in the labor force, meaning that those young people have given up looking for work due to the lack of jobs.
- If the labor force participation rate were factored into the 18-29 unemployment calculations, the actual Millennial unemployment rate would rise to 16.4 percent (NSA).
When people think of the conventional battery of options the BLS applies to fudge the monthly payrolls number, the labor force participation is the first thing that comes mind: after all the thesis is that old workers are increasingly dropping out of the labor force and retiring. Nothing could be further from the truth as can be seen in this chart of workers aged 55-69, i.e. the prime retirement age. But perhaps a far more important secular issue is the complete lack of pickup in the prime worker demographic, those aged 25-54, which in November dropped by 400k to 94 MM. This is a level first breached in April 1997, in other words in the past 15 years not a single incremental job has been gained in this most productive and lucrative of age groups!
Furthermore, there is absolutely no demographic reason why America, which has a substantial natural growth rate across all demographics, should not see more workers from the younger age cohorts enter this age group. We are, however, confident one will promptly be discovered as this chart becomes prevalent in the mainstream media.
Contrast the above graph to that for workers 55 and older:
Screwed: Unemployment Reaches 10.9% for Ages 18-29 (The College Fix)