284,000 college grads making minimum wage

While the number of degree holders working the lowest-paying jobs has fallen a bit since 2010, it's still up 70% in the past decade.

By Jason Notte Apr 2, 2013 7:06AM

Image: Fast food worker (© Creatas/PictureQuest)Watch that minimum wage debate carefully, college students: It's your first job people are fighting over.

 

While Congress and the president squabble over giving workers an extra 2 bucks an hour, The Wall Street Journal reports that 284,000 Americans with college degrees worked minimum wage jobs last year. That's down from a 2010 high of 327,000, but it does mean that 70% more college grads are earning minimum wage than a decade ago.

 

With art-school students and MBAs alike crushed by debt and even Ph.D. students seeking food stamps in increasing numbers, it's understandable that folks would write off college education as an expensive waste in the current economy. Yet a college degree is just about the only way young Americans benefit from the sluggish economic recovery.

 

From 2010, when the job market bottomed out, to 2012, workers with bachelor's degrees saw their employment rate increase by 5%. Those with advanced degrees fared even better: Among workers with master's, doctoral or professional degrees, about 1.1 million more reported having a job in 2012 than in 2010. According to the Labor Department, that 6.7% increase represents the fastest employment gain of any education level during that span.

 

Unfortunately, people without an advanced education are getting pushed out of the labor market altogether. The 36% of American workers older than 25 with a high school education or less started losing jobs in 2007 and haven't stopped. About 767,000 fewer of them reported having a job in 2012 than in 2010, and 2 million workers in that demographic left the job market altogether during that span.


It doesn't help that the college kids are sucking up just about every job imaginable. The U.S. economy has recovered 5.7 million of the 8.7 million jobs shed during the recession. Roughly 65% of those regained jobs have been of the low-wage variety, though the National Employment Law Project says nearly 60% of all jobs lost during the recession paid middle-income wages or better.

 

As a result, The Center For College Affordability and Productivity reported that nearly half of the college graduates from the class of 2010 are working in jobs that don't require a bachelor's degree. A full 38% have taken gigs that don't even require a high school education. According to The Associated Press, that has dropped the median wage for college graduates significantly since 2000.

 

That's a lot of parchment behind the counters at Starbucks (SBUX), Panera Bread (PNRA) and Wal-Mart (WMT), but it's not going to stop a flood of overqualified applicants from stuffing Costco's (COST) inbox when the company says it supports boosting the minimum wage. To student loan providers, cash from big-box store paychecks looks just the same as that doled out by the payroll departments at Goldman Sachs (GS) and JPMorgan Chase (JPM).

 

More on moneyNOW

447Comments
Apr 2, 2013 11:20AM
avatar

As someone who supervises college students as interns on a regular basis, one thing I have noticed is the unrealistic expectations of today's youth.  Many of them expect to start out making more than I make with an advanced degree and twenty years experience.

Apr 1, 2013 3:11PM
avatar
Maybe they need degrees in skills USEFUL to employers?   Do I really need history, literature, art, liberal arts majors?   How about engineers, IT people, and people with accounting skills?


Apr 2, 2013 10:09AM
avatar

No one thing or person to blame, but the colleges themselves are guilty for allowing students to borrow massive amounts to pursue useless degrees. I'm thinking Sociology, Psychology, Graphics Arts, and so many more.

 

Want a great job: Carpenter, Plumber, Air Conditioning, Electrician, the trades go begging. Some of these trades make great money, trust me, I did their taxes for years.

 

I'm a CPA and it ain't a bad way to make a living. Yes, it's college and the test is a son of gun but worth the effort.. Everybody has an accountant. I've worked in many businesses. Semi Retired now and still working part time at home in my pajamas or out on the deck.

 

Last year I spoke with one client graduating in Law Enforcement who couldn't find work. At the time our brilliant Government cut essential Police & Fire employment to save money rather than any really wasteful program.  I told him to join the Air Force, which is the cleanest living and best of the services, But the Army & Navy has cops too. He is now a 2nd LT running a squad of Air Police. He can do a career or muster out. A Vet with experience is a valued employee almost anywhere. He'll have a whole new world when he gets out.

 

Yea, I'm a USAF Vet and Uncle Sugar paid for my college! No college loans here!

Apr 2, 2013 11:17AM
avatar

I graduated from UCF in December with a Bacehlor's in Accounting and I had a job waiting for me before I even graduated. I CHOSE a degree I knew would be marketable and an easy sell to employers. All these students with pointless degrees end up really hurting themselves because noone cares that you have a communications or arts degree. You end up graduating in debt and with a degree thats about as useless as a GED. And people who blame it on experience, how about you get some before you graduate. I found an internship at Siemens during school because I searched diligently for one and didn't give up. If you want something bad enough you can EARN it. All these students go to college to party and expect to just fall into a great job after school. It's a rude awakening for the simple minded.

Apr 2, 2013 11:37AM
avatar

What the article DOESN'T say is many of these kids come out with a GPA of 2.0- 2.2.

Many go to a crappy school , too.

A college degree from Western CT U (Example) with a 2.0 means nothing !

They also post stupid pictures of themselves smoking joints or other, middle fingers extended , etc on Facebook. Rant about school or a professor.

 

My daughter is the director of Human Resource for one of the largest commodity companies in the world.

All hiring goes through her.

Although math skills are highly needed in this field , these kids send resumes with a 2.6 GPA and a 2.0 in Math.

Now , you want to get hired in the financial field ?

She looks at Facebook , Twitter and anything she can find on the internet about the person.

Mostly what she finds , hurts the candidates!

They never get called.

 

 

Apr 2, 2013 11:29AM
avatar

Number one, college is not for everyone. A lot of people would have been better off in a trade school.

Number two, a college education does not necessarily make you employable.

Number three, most people have an idea they are worth more than they actually are to an employer.

Number four, it is not up to your employer to furnish you with insurance. It is a perk if they desire to do so.

Apr 1, 2013 3:33PM
avatar

The real problem is that college students are stuck in the experience-degree catch 22. Jobs require some level of experience -- even for entry level jobs -- but they also want a degree to match. Students are pressured to remain full-time, which increases their work loads and tuition fees to the point that they cannot afford to have part-time college jobs (which may or may not increase their experience in their field). Colleges and Universities that offer semester internships take away another semester of courses that may or may not be available the following semester due to funding/scheduling. Colleges often do not have any openings for on campus jobs due to funding cuts and, in some places, there are no off-campus locales to offer jobs either.

 

This isn't completely about "useless" degrees. My friend has an MBA in Finance but could not find a single job -- not even an internship -- for 8 months after graduation. Target wouldn't even take him for a part-time job because he was "overqualified" to be a cashier or security guard. He's since gone back to school to waste more money on more undergraduate and graduate level courses to get another degree in Mechanical Engineering -- with which he's hoping to have more luck. I have a BA in History (typically characterized as a "useless degree") and, had my current employer not taken a chance on my inexperienced skills for my position, I would be stuck at my previous part-time job where I held barely 12hrs/wk. Other job postings for my position in my area want 5-7 years experience and a degree in the field for an entry level applicant. The experience-degree problem is going to continue putting college students into debt and employed at the lowest wage jobs they can convince to take them.

Apr 2, 2013 11:46AM
avatar

The other part , as others have pointed out is the parents all tell these kids they are special ! From birth.

They never lose a game as a kid ,because there are NO winners or losers in sports according to the loony lefty brain.

 We are ALL equal (but your kid is MORE equal)

You can be ANYTHING you want !!.Iit was the teachers fault that your grades suck.

 

 The kids take that tude when they go off to college and surprise , the real world doesn't work that way . There actually are winners and losers in the real world !

People actually are prcks

People will actually screw you !

 

 

Apr 2, 2013 11:27AM
avatar
I own a software company.  I employ 88 skilled programmers, network technicians, system analysts, etc.  I used to hire recent college grads for junior-level positions but stopped.  Geez, what a sorry bunch of idiots these liberal colleges are producing nowadays.
Apr 2, 2013 11:36AM
avatar
So a kid with a Masters degree in "Basket Weaving" doesn't understand why he doesn't deserve a six figure position in corporate management?   WOW!!
Apr 2, 2013 11:18AM
avatar
My nephew got a pretty useless degree from a prominent university.  There is just no job market for the things he studied.  He is now planning to go back to college for a degree in engineering.  My young son is an engineer and is working, but his wife is a high school English teacher and can't find a job anywhere.  She works two minimum pay jobs and is now pursuing a masters in teaching.  I don't know if a masters would help since she already can't find a teaching position.  I don't think some young people think it out when they  pursue a degree - that you have to get a marketable one these days, especially with today's job market being so tight.
avatar
The one thing I have noticed about job seekers is the lack of wiliness to relocate. I have actually assisted young people in receiving job offers who turned the offer down because they did not wish to live in a particular area of the country.
Apr 2, 2013 9:47AM
avatar
Obama pushing college degrees, on taxpayer funded student loans, that they can't pay back making minimum wage. Just another Obama train wreck waiting to happen.....
Apr 2, 2013 11:20AM
avatar
Obama has/had no intention of raising the minimum wage.  Keeping wages low through high unemployment is a necessity to maintain low interest rates, keeping debt expenditures under control, and enacting the New One World Economy.  Amazing how many folks do not get the unscrupulous actions of politicians.  How do you folks think we got into the positions we are in today?  Because Politicians actually mean and do what they say?  Stupid people make the rest of us victims as well.  JMHO
Apr 2, 2013 10:02AM
avatar
A couple of weeks ago, Bernanke's continuous feed into the stock markets produced 300,000 new and useless millionaires. Decide your future, folks. Best to end paper and button pushing administrators and sever ties with organized financial tyranny. Neither can float without us bolstering them. Every youth at Minimum Wage guarantees a Senior will finish life impoverished and without the ability to do much about it. We are so far away from Actual America that it isn't funny or sunny.
Apr 2, 2013 10:20AM
avatar
I know, offer universal healthcare that companies are forced to pay for and that will make it easier for people to get full time jobs!

I mean, Europe does it, and they're doing great, right?
Apr 2, 2013 11:28AM
avatar

Sucks to be a Liberal Arts major.

I chose to get a degree in something useful, so my salary has gone up by a hair over 50% since the recession started.

Apr 2, 2013 9:34AM
avatar
A President and an administration that have a lick of sense about economics is the only way to alleviate this, and other job problems for our country. Even the entry level jobs at fast food restaurants are getting their hours cut due to the stupid Obama-insana-care rules. 
Apr 2, 2013 9:57AM
avatar

Hmmm, maybe getting an liberal arts "education" wasn't a good idea afterall!  Like voting for the dummyrats.

Apr 2, 2013 12:43PM
avatar

Everyone here seems to act like everyone can just jump into Accounting or Computer Programming and zip along to a great job. I'm sorry, but not everyone can attain those skills. If we could, don't you think we'd all be flocking to those industries' salaries? Could everyone here just magically be able to learn the higher level science and math skills those jobs require? Because I know I couldn't. I'm a great student, but I know when I'm not picking something up. Not everyone can do that kind of work, just like most people can't make movies or some can't be in the military. For some of us, soft sciences are where our brains are the most useful, and despite the flagging job market I think there's still a lot of demand for these jobs, it's just that the older population is still working rather than retiring because of the bad economy.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The stock market finished the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains.

The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly.

Stocks began the trading day with modest gains ... More

MSN MONEY'S