Nobody Loves Ya When You're Unemployed (And Educated)

Dorothea Lange

Breakdowns of unemployment statistics make it clear the more education you have the less likely you are to be jobless. For instance, the overall unemployment rate in November was 9.8 percent. For college grads it was 5.1 percent.

Hooray for education, right? Not if you're part of that 5.1 percent.

For one thing, the numbers show the more education you have the longer you will be unemployed. Over 45, a college grad and unemployed? The only part of that description likely to change in the near term is your age.

I recently read about a woman who demonstrated with numbers how her experience made her more productive than younger workers. Her boss said she didn't care because she could hire two new college grads to cover the same amount of work and still save money. The cash register rang and the older worker was out the door.

I've talked with small business owners who would never hire someone with a college degree for a job they perceived didn't require one. They reasoned that the over-educated employee will head out the door at the first glimpse of a job that is more engaging and pays them what they think they're worth. (They might want to rethink that: 42 percent of the jobless have been out of work for more than six months.)

The last census update reported 27 percent of Americans hold a college degree. Do the math and find 4 million literate, middle-class, unemployed people who find it harder to get a job than someone with a high school degree.

Hooray for education?

Photo: Dorothea Lange

Street Economics 2Q 2009

It's Revenge of the Parents Time for young people who assume they can move back in after graduation. Articles offering mom and dad advice on how to get rid of the kid are popping up all over the place.

Not so long ago I sneered at the extended adolescence of young people who assumed it was socially OK to live with the parents well into their 20s. Now, instead of emailing get-rid-of-the-kids stories to friends, I'm taking a more understanding tack.

After all, unemployment nationwide is at 9.4 percent and there are many states and regions with official jobless rates well into double figures. Also, multiple reports say a scant 20 percent of this year's grads have jobs lined up. Experienced workers are duking it out with them for entry level jobs. Even MBAs are taking hits in salaries and status.

So, at least until Q3, I will forgo eye-rolling when a young person ruefully admits to cohabitating with Mum or Da because it might not be their fault.

Besides, a bit of sympathy might get me a free drink.