The end of the school year has arrived and graduates are looking for ways to pay the bills. Find out here about fresh grads and how that affects the job market.
According to the 2019 Employment Situation Report, almost half a million Americans stopped searching for jobs and became discouraged workers.
Discouraged workers are people who believe they’re just aren’t any jobs out there. Unsurprisingly, these workers place a lot of blame on recent college graduates for snatching up all those jobs.
But are fresh grads all bad for the economy and the job market? We’re answering that question here. And keep reading for ways to make sure you aren’t negatively affected by these changes.
How Recent College Graduates Affect the Unemployment Rate
So you live in a college town and you just lost your job. Worse, university graduation is just around the corner.
You’re worried about competing with a whole slew of fresh-faced job-seekers. Job-seekers who haven’t spent years navigating the disaster that is the US job market. And rightly so.
Fresh grads affect multiple aspects of the job market. To prepare yourself for the aftermath of college graduation, here are 4 changes to expect.
Fresh Grads Increase Job Market Supply
Like any other market, the job market is influenced by supply and demand. Employers create demand when trying to fill vacancies. But it’s job-seekers that serve as the supply.
After college graduation each year, the supply in the job market skyrockets. This leads to an increase in job competition.
Fresh Grads Increase Job Competition
When supply increases in the job market, the competition for positions goes up, too. This is especially true for fresh grads searching for a job in competitive markets such as:
News reporting, corresponding and analyzing
Petroleum, mining, and geological engineering
The more applicants employers have to choose from, the pickier they can be. But that also means they can get away with offering a lower rate of pay.
Fresh Grads Decrease Wages
The bottom percentage of recent college graduates are making less than half of what they might have made in previous years. But that’s no wonder when employers have so much supply, they can lower their pay rate and still attract top talent.
Underemployment is one of the biggest issues plaguing fresh grads today. In fact, nearly 300,000 US college grads work minimum wage or tip-based jobs.
Fresh Grads Increase the Unemployment Rate
The unemployment rate is determined by the number of unemployed individuals who are willing and able to work. When fresh grads hit the job market, the number of viable workers increases. At the same time, an overabundant supply of qualified workers means an increase in the unemployment rate.
High unemployment rates are dangerous for the economy, leading to stagnation, social upheaval, and loss of a comfortable lifestyle. With a current unemployment rate of 3.7% for fresh grads, the economy is in more danger of stagnation than it has been for 50 years.
How to Compete with Fresh Grads in the Job Market
Sometimes hitting the pavement with your resume just isn’t enough when the job market is so competitive. That’s where recruiting services like JSK Recruiting come in.
Looking for your perfect job or ideal employee? Contact us today to find out how our approach can help you stop searching and start paying the bills.