When Unemployment Happens to Educated People

After the graduation gifts and parties, comes the harsh reality of the current American workforce. Reality is that jobs are scarce, and that a college degree may, in some cases, not be worth the exorbitant student loans.
The Associated Press reports that over half of recent college graduates are either unemployed or underemployed.

What does underemployed mean exactly? It means having a college degree for a job that will never require one. For example, one in seven lobby attendants and ticket sellers are college graduates. Similar numbers apply for amusement park attendants with one in six having a diploma. One in five retail salespeople and one in eight taxi drivers have a college degree as well.

The underemployment rate now is at the same rate it was in the early 1990s. It was at an historical low in 2001, and had been on the rise since 2011.

To make matters worse, the average student loan debt has had a 58 percent increase in the last seven years. College students are looking at a loans with interest amounting to $34,429.

However, the return on investment of a college education still trumps not getting one, with college graduates making 85 percent more than those with just a high school diploma. But the catch is, only half of these graduates are landing jobs to begin with.

So college graduates be warned. It may take a few jobs before getting the one you deserve.

DNA’s Bianca Perez, Daniel Rivero, and Omar Michaud further discuss this issue and share their personal stories in the video above.