Facing the most challenging job market in at least a generation, today’s younger workers are currently confronted with economic realities that have forced them to reconsider career choices that might have been foregone conclusions just a few years ago. Imagine looking for work if the unemployment rate jumped to 17.4 percent. Now, consider that is the actual unemployment rate for the age cohort of 16 to 24 year olds across the United States.
Once considered the key to greater economic freedom and financial success, the value of a college education is being called into question. In the wake of the recession, an outpouring of reports have cited increasing tuition costs, escalating student-loan debt burdens and diminishing job opportunities for recent college graduates as justifications for younger workers to forego college.
How can economics help today’s youth make an informed decision about what can fairly be described as one of life’s most important choices? Our analysis suggests that the decision of whether to attend college, pursue a technical degree or discontinue education after high school not only plays an important role in helping young people find a job, but also completely changes the trajectory of a prospective student’s lifetime earnings. With the constant growth of globalization and the shifting trends in the production of goods and services, we also consider the eternal question of passion versus practicality as it relates to pursuing a course of study. In addition, we survey the employment landscape to provide a snapshot of how different generations are staggered across the labor force and what that distribution means for younger workers seeking employment today, as well as how changing demographics will likely shake things up in coming years. Finally, we consider the role of fiscal policy and what federal spending cuts may mean for higher education in the years ahead.
Is College Still Worth It?
Today’s younger workers are currently grappling with the most challenging labor market for their age cohort since the Great Depression. The unemployment rate for workers between the ages of 16 and 24 is nearly twice the national unemployment rate, and participation in the labor force among younger workers has plummeted in recent years, compared to prior economic recessions in the 1970s and 1980s.
If you would like to read the entire report by the Wells Fargo Economics Group, click on the link below:
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