College grads making $3,200 less than in 2000
Today's new graduates earn 8.5% less than they would have just over a decade ago, making it even harder to pay off their increasing debt loads.
Stories abound about the tough job market awaiting newly-minted college graduates. But even those degree holders lucky enough to find work are earning much less than they used to, a new study shows.
The average hourly wages for college graduates aged 21 to 24 have plunged by 8.5% since 2000, according to the Economic Policy Institute (EPI). In dollar terms, that means getting a degree today will net fresh graduates an annual income that's $3,200 less than what they would have made just over a decade ago, the study says.
The big hit can be blamed on the two recessions that hindered the U.S. economy since 2000, with wages especially crimped during the Great Recession, according to EPI economist Heidi Shierholz.
"The wage declines since 2000 stand in sharp contrast to the strong wage growth for these groups from 1995 to 2000," Shierholz noted. "During that period of low unemployment and overall strong wage growth, wages rose 19.1% for young college graduates."
At the same time, college tuition and fees have almost doubled since 2001, according to the Bureau of Labor Statistics. So, basically, if you graduated in the 21st century, tough luck: You likely paid more to earn less.
That's borne out by other recent studies of the challenges facing recent graduates. As my colleague Jason Notte wrote on Tuesday, the country employs 284,000 college grads in minimum wage jobs. That's 70% more than a decade ago.
In 2012, young college grads earned an average hourly wage of $16.60 an hour, or about $34,500 a year. In 2000, however, the average wage topped $18 per hour, according to the EPI.
Female college graduates are even in worse shape, with the average young woman with a college degree earning an hourly wage of just $15.64, the study found. Male grads earned an average hourly wage of $17.81.
Regardless, the drop in pay for new college grads may make it even more challenging for them to establish themselves financially while paying off student loans.
While recent grads are getting paid less, their debt loads continue to rise. The average U.S. student loan debt topped $27,000 last year, a jump of 58% in just seven years, according to Forbes.
Or, as George Carlin said "...they call it the American Dream, because you have to be asleep to believe in it."
A college grad used to be paid more. What happened?
Could it be that employers no longer needed as many of them?
Or could it be that there are too many college grads than the job marketplace can absorb?
Perhaps employers realize they could get a college worker for cheap if there are enough of them fighting to get a job?
There is your answer.
Being a recent College Graduate. I got my degree in Environmental Science, and with a little determination and working hard to prove myself. I have moved into an Environmental Specialist role. I started at the bottom, but you have to walk before you run. My advise for this years upcoming grads is to pick a company with growth potential with entry level openings. Once you get in youcan move fast. Also be willing to relocate it increases your odds greatly.
well here we go the companies saying the ceo needs more money time to cut the pay of the worker
It's not cause of Obama or the Republicans or the gays or whatever else people like to complain about these days, it's simply American culture shifting toward the idea that any college degree is mandatory and worthwhile for everyone, when that isn't the case. People need to research which degrees are marketable in the workforce, or which schools place graduates into good positions.
Alright Sheeple. I have a story that I would like to share. I grew up in a farming community. Any person could make a liveable wage if they were willing to go out and work in the fields either detasseling corn or cutting shattercane. At the time minimum wage was under $4 per hour. Doing a mindless, hard working job like this paid around $8, almost twice minimum wage. This $8 could buy you a gallon of milk, 5 gallons of gasoline and still have enough money to get a big mac, fries and a coke.
Today, corporations pretty much own the farms around the town I lived in. The price they are willing to pay for someone to toil in a field for an hour is less than minimum wage. Of course if you ask anyone in the United States, hey will you come tend my field in mid summer for $7.25 per hour? I would hope the answer is NO! Well the answer was no. So corporations can now petition the government to hire migrant workers to work in the fields and take jobs from U.S. citizens because the CEO needs to make 14 million a year while paying his workers minimum wage.
It was only a matter of time that corporate leaders who have no idea how to actually make something, would be taking our college educated Americans and find a way to pay them like field hands as well. Now, the United States Government is allowing most of our good paying jobs, that we are supposed to giving to our educated people, be outsourced. Then they tell us that it is our fault because we don't produce enough qualified students and we should spend more on education.
Our middle class, the union workers, teachers, police, firemen and the technically educated people are now in the poor house. Our upper class, the doctors, the lawyers, the engineers, the professors are victims of corporate greed and barely make our middle class. Our corporate leaders and politicians now have more money than they will ever need and the only thing they really know how to do, is make the sheep walk in a straight line.
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