the recession s impact on the job market
Skip this Video
Download Presentation
The Recession’s Impact on the Job Market

Loading in 2 Seconds...

play fullscreen
1 / 25

The Recession’s Impact on the Job Market - PowerPoint PPT Presentation

  • Uploaded on

The Recession’s Impact on the Job Market. By: Jessica, Kelly, Jennifer, Natalie, and Jordaan. General Overview. In 2007, the worst recession hit since the Great Depression Ever since, college graduates have lived in fear that they may not find a job after graduation

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'The Recession’s Impact on the Job Market' - iliana-neal

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the recession s impact on the job market

The Recession’s Impact on the Job Market

By: Jessica, Kelly, Jennifer, Natalie, and Jordaan

general overview
General Overview
  • In 2007, the worst recession hit since the Great Depression
  • Ever since, college graduates have lived in fear that they may not find a job after graduation
  • This recession has affected the US job market in general and also the ability for college graduates to find jobs
  • As of the end of 2009, the recession officially ended; however, employment is the last factor to recover after a recession and it also takes the longest to recover
high unemployment rates
High Unemployment Rates
  • During the recession, thousands of qualified and capable people were laid of with years and years of experience
    • That means that even though hiring is starting to pick up again, graduating seniors are forced to compete with these experienced applicants
  • According to the National Association of Colleges and Employers, employers expect to hire 22% fewer graduating seniors in 2010 than in 2008
  • The unemployment rate as of March, 2010 was 9.7%
high unemployment rates 2008
High Unemployment Rates- 2008
  • At the end of 2008, the unemployment rates for college graduates were at an all time high
  • In November of 2008, the Labor Department reported that the business and professional sectors cut 136,000 jobs, the largest amount of jobs cut in one month ever, according to an article published by Jessica Dickler in CNN Money (2008)
  • In September of 2008, 3.1% of college graduates with a bachelor’s degree were unemployed; while the overall unemployment rate rose to 6.6%
  • Through November of 2008, the labor Department reported that a total of 1.9 million jobs were lost
high unemployment rates 2009
High Unemployment Rates- 2009
  • In April of 2009, the rate of jobless college graduates was 4.3%
  • According to the National Association of Colleges and Employers, 2 million college graduates were unemployed at that time due to hiring freezes most companies were implementing because of the severe recession
  • One area of employment that was thriving was governmental positions
high unemployment rates 2010
High Unemployment Rates- 2010
  • Employers that attend job fairs do not have as many entry-level positions as they normally have and they come mostly to recruit summer interns
  • Going to be a competitive and difficult job search
  • Graduates may have to settle for a job rather than their dream jobs
job placement
Job Placement
  • Not only have students accepted non-major related jobs and lower paying jobs, but many have also been required to search longer for their jobs
  • Students are led to believe that companies will want to hire them after they have completed a degree
    • Shaken by unsteady economic conditions
  • Graduates who find jobs during the poor economic conditions may earn significantly less than similar graduates who found jobs before the economic problems
job placement cont
Job Placement cont.
  • The benefits of earning a degree still outweigh the costs
  • According to the Wall Street Journal article the March unemployment rate for graduates with a bachelor’s degree is 7.2% compared to the rate of 21.9% for high school only graduates
  • Graduates may have difficulties finding employment related to their studies
    • Graduates’ qualifications will enable them to find temporary work while they wait for the economy to recover
job placement cont1
Job Placement cont.
  • Recent graduate, Trina Thompson filed a suit against her college in 2009 because she is unable to find full time employment after three months
    • Monroe College, New York
    • She wants the school to require the companies on their e-recruitment list to contact students and provide more opportunities to those without a perfect grade point average
    • Thompson is suing for $75,000 to serve as compensation for her tuition and stress during the unsuccessful job search
the advantages of a college degree
The Advantages of a College Degree
  • Based on averages from the 2009-2010 academic year:
    • Average tuition for a public two-year college is $2,544
    • Public four-year university is $7,020
    • Private institution is $26,273
advantages cont
Advantages cont.
  • The median annual salary of workers with a high school diploma was $32,552
  • For workers who had completed some college or obtained an associate’s degree, the median annual salary was $37,752
    • Difference of just over $5000 for the higher educated workers
  • Survey respondents who graduated with a bachelor’s degree had a median annual salary of $53,300
    • Over $20,000 more per year than the salaries of those with only high school diplomas
    • Those with a four-year college education made 61.5% more than those with only a high school diploma
the loan situation
The Loan Situation
  • The average college debt after graduation for the class of 2007 was $22,700
  • Graduating with close to $23,000 in student loans may seem daunting for many students with the lack of jobs currently available
    • With large amounts of debt, securing a loan for a car or mortgage may be hard, if not impossible, if no step is taken to lessen the student loan debt
    • Not only do student loans hurt one’s credit, they also become more expensive to pay off when interest rates jump
    • With a poor credit rating, the desired mortgage may not be able to be obtained and retirement savings may need to be used in order to pay off debt
loans cont
Loans cont.
  • Ways to pay off debt:
    • 1) Students are used to living an inexpensive lifestyle so continuing this way of life for a few years while paying off debt will be beneficial for their futures
      • Living with a roommate will cut expenses.
    • 2) Continue to make the minimum payments until other, more expensive debt can be paid off
      • Consolidating loans into a 15 or 20 year repayment plan takes care of this, allowing students to tackle credit card fees and personal loans or car loans
    • 3) Set up retirement savings and an emergency fund
    • 4) Slowly increase payments toward loans
  • These steps are especially beneficial for students in today’s economy where jobs are harder to come across and pay scales are lower, yet loans still need to be paid off
alternative jobs in alternative markets
Alternative Jobs in Alternative Markets
  • Some industries are thriving
    • Health care
    • Education
    • Government
  • Alternative 1: Graduate schools
    • Many students are choosing this path straight out of their undergraduate schools
      • Number of applications is increasing and it is tougher to get into graduate programs
alternatives cont
Alternatives cont.
  • Alternative 2: Join one of many life-enhancing organizations such as the Peace Corps or Doctors without Borders
    • Added benefit of working for one of these organizations is that students can get receive aid on towards student debt payments
  • Alternative 3: Find a part-time or full-time internship to boost resumes and get a foot in with a company
    • Students ideally start as interns and then work their ways into full-time positions once the company has openings
grad school in the tough economy
Grad School in the Tough Economy
  • As long as a student remains in school, loans can be deferred until graduation
  • The debate of whether students should wait a few years before going to graduate school or whether they should go straight away is one that is frequently discussed
grad school cont
Grad School cont.
  • Pro’s
    • Being a student already comes naturally”.
      • Students do not need to reacquaint themselves with being a student
      • Student’s study skills will most likely be much sharper
    • Fewer obligations
      • In most cases, students do not have families, mortgages, or very expensive bills if they enter graduate school immediately after earning their bachelor’s degree
grad school cont1
Grad School cont.
  • Con’s
    • No real-world experience before going to graduate school
      • After having worked in the field for a few years, one will better understand what it is they truly want to do and get a degree in
    • Employer may be willing to pay for a portion, if not all, of the schooling, as long as they will come back to work full-time for them after graduating
are students switching majors
Are Students Switching Majors?
  • One popular topic of discussion when it comes to the poor job market is whether it is causing students to switch their majors to areas that they feel would be more safe and profitable
  • David Replogle, of the University of Virginia, identifies that certain majors are more profitable for future graduates but doesn’t suggest that they change majors
    • Students should look at degree programs in health care, technology, green energy and education suggesting that these jobs are recession proof
switching majors cont
Switching Majors cont.
  • Students are not switching their majors but taking great caution when choosing their majors in starting their degree programs
  • Students are hoping the majors they originally chose will be beneficial once they graduate and once the job market recovers
  • Aiding their decisions to stick with their majors is negative feedback from older peers that did switch and wish that they had not
  • Recession has had severe effects on college graduates over the last few years
  • The poor job market will take time to recover, meaning graduates in the next couple of years will also be effected
  • The economic downturn specifically in the job market has led to:
    • Extremely high unemployment rates for college graduates
    • Graduates accepting jobs outside of their degree and that offer lower pay
    • Students looking at alternative options.
Average College Costs on the Rise. (2009, October 22). Web.

Bureau of Labor Statistics. (2010, April 2). US Department of Labor. Web.


Curran, Shelia. (2009, October 18). 2009 College Graduates: Unemployed and Forgotten. Curran

Career Consulting. Web. .

Degree FAQ’s. (n.d.). Degree Directory. Web. .

Dickler, Jessica. (2008, December 5). Have Degree- and Pink Slip. CNN Money. Web.


Hale, C. (2010). "Grad School: Now or Later?" The East Carolinian. Web. 1 Apr. 2010. .

Jayson, Sharon. (2009, June 23). Recession Generation? Young Adults Embrace for Simpler Lifestyle.

USA Today. Web. .

Kessler, J. (2009, August 04). Alumna Sues College Because She Hasn’t Found a Job. Web.


Lattin, B. (2009). "A Graduate Degree In Debt -" - Business News, Financial News, Stock Market Analysis, Technology & Global Headline News. Web. 06 May 2010. .

Mattoon, L. (2009). "Recession, Education, and Tomorrow's Job Market | MyUsearch Blog." MyUsearch Blog. Web. 06 May 2010. .

Moore, J. (2009, May 28). US Grads’ Job Expectations on Hold. The Christian Science Monitor. Web.


Murray, S. (2010, April 03). College Grads’ Outlook Grim. The Wall Street Journal. Web.


Noguchi, Yuki. (2010, March 29). Finding a Job is Hard for Even the Most Educated. NPR. Web.


Priya, David. (2009, April 18). College Graduates Tackle Dismal Job Market. CBS News. Web.


Pugh, Tony. (2009, June 25). Recession’s Toll: Most Recent College Grads Working Low Skill

Positions. McClatchy. Web. .

Replogle, David. (n.d.)/ Recession-Safe Majors. The Real College Guide. Web.


Schonberger, C. (2008). "How Does the Recession Affect Your Job-Hunt? |" | Life After College | College Graduate | Grad Gift | Graduation Gift | College Grad | College Senior. Web. 06 May 2010. .

Should a Recession Affect the Major that a College Student Chooses? (2009, February 16.)

University Parent Connection. Web. .

Stueber, R. (2008). "Debt-squeezed Students Consider Graduate School as Short-term Fix - JSOnline." Milwaukee Journal Sentinel - Breaking News, Sports, Business, Watchdog Journalism, Multimedia. Web. 06 May 2010. .

Weston, L. P. (2010). "How to Blitz Your College Debts - MSN Money." Commentary Index - MSN Money. Web. 06 May 2010. .


p.s. Sorry to ruin your mornings.