The Bureau of Labor Statistics (BLS) has found a direct link between education level and the unemployment rate. The chart below is based on 2008 data.
Source: The Bureau of Labor Statistics (BLS). Note: Data are 2008 averages of full-time workers over the age of 25.
It may not be surprising to you that people who possess doctoral degrees make more money and have a much lower unemployment rate than those who did not graduate from high school. However, what is disconcerting about the above chart is what it means to the uneducated lower classes.
With the unemployment rate at 16.4% (as of May 2009), the above chart tells us that people with an education are far more likely to have a job during tough times than the uneducated or undereducated. As the unemployment rate goes up, people with degrees who previously held white collar jobs will undoubtedly move into the blue collar sector as corporations lay off workers.
I have a cousin who is a degreed journalist. He has been a sports writer for a newspaper, and as a sports fanatic, it has been a good fit for him. Having been recently laid off, he has been unable to find a job in his profession, so he is getting ready to take a job that is … well, just a job. He falls into the category of a degreed professional who is moving into a non-degreed job because of tightening market conditions. He is, of course, more qualified than non-degreed people to work in a call center, for example. That person who would have gotten the job in the call center gets pushed lower down the job ladder.
But what happens to people on the bottom rung of the job ladder as market conditions constrict the employment market? Your guess is as good as mine. Some of these people will turn to grey market activities (mowing lawns for cash and not paying taxes, for example), others to black market activities (selling steroids — or worse), still others will become liabilities (living with family, for example).
Like mom and dad always said, it’s a good idea to stay in school. The BLS data shows that in tough market conditions, people with an education will be able to procure some type of employment, although not necessarily in their preferred line of work. Unfortunately, it’s a tough time to be a person who didn’t go to college.
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It shows that more help is necessary. It seems that a lot more people don't have college degrees than those that do. That's why we need to continue to have programs that are able to help everyone. Just because you were not able to attend college doesn't mean that you shouldn't be able to own a home; have a nice car; life; etc. We will pull out of this backwards economy, but we all need to help out where we can.
Is this really a surprise to anyone? Employers often nowadays even refuse to consider most people unless they have a bachelors degree. Regardless of whether degrees hold any meaning these days or not.
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These statistics really aren't much of a surprise, but you are right to raise questions regarding where the future will take us. On another interesting note, however, I have read that there are several skilled labor positions – such as welding positions – that employers are struggling to fill because people have focused so much on attending college rather than vocational schools after graduating from college. So, there are blue collar positions available, but you have to have a certain level of experience to qualify for those positions and people with degrees can't fill those positions either.
It is very hard to get your foot in the door if you do not have a Bachelor's degree even if you do have years of “real life work experience”. Which slightly bothers me simply because I have met many people along the way that just graduated college but seemed so far behind in skill level versus the candidate that has been working hard since they graduated high school. I think every one is different and college is not for every one. Why set the bar for failure just because there is no Bachelor's degree?
Jobs are not available, college or not.