Is a College Education Worth the Cost? The Latest Employment Stats

Going to college is a requirement for great career and financial success, right? The answer may no longer be an obvious “yes.” While a college degree can definitely help you find a higher-paying job, there are some complicating factors, including education debt and the fact that it takes college graduates six months on average to find their first job.

Many college graduates today are struggling to find jobs in their area of study while many others are getting jobs that do not require a college diploma. Naturally, the global pandemic has also impacted employment prospects for a lot of people across the globe.

In 2020, the unemployment rate for college graduates with a bachelor’s degree or higher was a very low 2 percent. Interestingly, the underemployment rate—those who are underpaid or overqualified—for this group was greater than 50 percent, according to the University of Washington. Nevertheless, the difference in pay for a high school graduate versus a college graduate is nearly 75 percent—meaning that degrees do pay off in the end.

Certain college and trade school degrees are more employable than others: While liberal arts and mass media graduates face higher unemployment rates, the college majors with the lowest unemployment rates include medical technicians, theology and religion majors, and education. Trade school graduates reported an unemployment rate of just over 5 percent in 2018.

While a college degree is still the best way to launch a successful career, this path may not be for everyone, and it is important to take individual circumstances into consideration when it comes making key decisions on employment, careers and college.

Unemployment Rate Drops to 8.4 Percent While Payrolls Increase by 1.37 Million in August

With new hiring from government, retail, education and healthcare, August saw the unemployment rate dropping from 10.2 percent a month earlier to 8.4 percent while payroll increased by about 1.3 million during the month.

These hiring trends revealed that the economy is rebounding from the recent downturn spurred by the pandemic. In fact, the August unemployment rate was the lowest since the global pandemic struck the United States in March, according to the Labor Department.

Expectations from economists were that the unemployment rate would drop from 10.2 percent to 9.8 percent over the course of the month, so the 8.4 percent represented positive news. In addition, workers temporarily laid off declined to 6.2 million, a sharp contrast from more than 18 million in April. Permanent job losses increased to 3.4 million.

In particular, government hiring represented more than 340,000 workers – chiefly those working for the Census – and eight million more people reported getting off of furlough. Likewise, new retail positions represented an increase of nearly 250,000 workers and leisure and hospitality saw growth of close to 175,000 people. Warehouse and storage jobs added 78,000 positions and education and health services reported gains of about 147,000 workers.

Unemployment rates for diverse workers also decreased: The unemployment rate for Black people fell to 13 percent while the same rate dropped to about 11 percent for Asians and 10.5 percent for Hispanic workers – all representing month-over-month decreases.

On the whole, economic news is trending stronger, with positive bumps in real estate, retail sales, real estate, manufacturing and hiring.