An improving job market for the Class of 2012

Lately, the first few weeks of May have proved a popular time for reporting on the job market, student-debt, and the rising cost of higher education. Since 2008, the news has been mostly bad: "Ninety-four percent of students who earn a bachelor’s degree borrow to pay for higher education — up from 45 percent in 1993," reported Andrew Martin and Andrew Lehren in The New York Times two days ago(link). "For all borrowers," they cite from a report by the Federal Reserve Bank of New York, "the average debt in 2011 was $23,300, with 10 percent owing more than $54,000 and 3 percent more than $100,000." Coupled with a national unemployment rate that remains stubbornly above 8%, many believe student loan debt (almost $1 trillion) for higher education could be the next debt-bubble to pop.

Fortunately, there is good news. As reported by the Associated Press in this morning's newspaper, "This year's college seniors are seeing more job opportunities than graduates in the previous three classes."

In some ways this should come as no surprise, since employment has been growing (however slowly) for the last year and a half. "3.1 million jobs,"according to the report, were created in that time, compared to the loss of 6.9 million jobs "between September 2008 and August 2010." 

For a number of reasons, it is believed this year's class will have a better (but by no means easy) chance of finding a job. For one thing, the class of 2012 spent the worst years of the recession in school. This meant they were more protected from the down-turn than those already seeking work or trying to get by while repaying loans. In addition, the Associated Press report suggests that the class of 2012:

 "...used their college years to prepare for the brutal realities of the job market that would await them. They began networking for jobs much  earlier, as freshmen in some cases. They pursued summer internships not simply as resume boosters, but as gateways to permanent jobs. And they developed more realistic expectations about landing a job in the ideal place and at the ideal salary." 

In short, the student loan problem remains a major issue, but adapting students and improving labor markets together offer hope that a major crisis can be avoided. Let us hope that a growing economy, better loan counselling, and greater public-university cost-reform will help graduates and society continue to benefit from quality higher-education.

Happy Monday, friends :)