According to a recent article in Salon, 53% of recent college grads are working full time while 21% are attending graduate school. That accounts for 74% of respondents and the results don’t sound too bad. Most grads either got a full time job or went on to an advanced degree. The number of graduates working full time jumps to 75% two years out, which is even better. Maybe things are looking up. Maybe.
Assuming all graduates were actively seeking full time employment, two years is a long time to wait for a full time job. And, the median yearly salary for 2009-2010 grads is just $27000. That’s less than the average for 2006-2007 graduates. Many in the 22-25 age range also reported getting financial help from family. Some reported still living with family. The cost of college continues to grow, but wages have done the opposite. The recession continues to take its toll, even for the educated.
But an article in Time puts things into perspective. In 2010, the average weekly earnings for a college graduate was just over $300 more than someone with only some college. College graduates had jobs with better benefits, too. In the same year, the unemployment rate was much lower for college grads—5.2% compared to 9.2% for those with only some college. Tellingly, a college degree had a very significant impact for lower income students and/or students from lower income households. Without a college degree, just 14% of the lower 1/5 of the economic spectrum makes it to the top 2/5. With a college degree, that number jumps to 41%.
A college education remains a good investment, but cost is an issue; it always comes back to that. For lower and even middle income families, college can be a financial burden and leaving with a high debt changes the way students have to view those starting salaries. Yet, it’s clear that college increases income and upward mobility.
It’s a rock and a hard place for a lot of people. The stakes can feel high if you don’t have a college fund and that’s sad. College shouldn’t have to be a gamble or the thing that costs so much you don’t notice the benefits.
