A profile of the plight of recent college and high school graduates as they search for full-time employment in the recession era

1. Unfulfilled Expectations of Recent College and
High School Graduates in the United States
Carl Van Horn*
Professor and Director
John J. Heldrich Center for Workforce Development, Rutgers University
Presented to the Conference on Long-Term Unemployment,
hosted by the National Association of State Workforce Agencies,
World Association for Public Employment Services,
and Organisation for Economic Co-Operation and Development
February 20-22, 2013
Washington, D.C.
* Author of Working Scared (Or Not at All): The Lost Decade, Great Recession,
and Restoring the Shattered American Dream (Rowman & Littlefield, 2013)

2. Unfulfilled Expectations of Recent College and High School Graduates
2
Education and Employment Status of
Young Workers in the United States
 U.S. ranks 15th in proportion of adults with
postsecondary degrees among OECD
nations in 2009
 U.S. ranks 8th in proportion of adults with high
school degrees among OECD nations in 2009
 72% of young people who begin high school
graduate

3. Unfulfilled Expectations of Recent College and High School Graduates
3
Education and Employment Status of
Young Workers in the United States (cont.)
 50% of young people who begin college
obtain a BA/BS degree
 Unemployment rate for 16- to 19-year-olds in
January 2013:
Overall: 20.8%
Black or African American: 37.8%
Hispanic or Latino: 26.5%

4. Unfulfilled Expectations of Recent College and High School Graduates
4
Recent High School and College Graduates Struggled
to Find Full-time Jobs During the Recession Era
Employment Status College High School
Unemployed and looking for work 6% 30%
Unemployed and not looking for work 5% 14%
Working part time, not looking for full-time work 6% 8%
Working part time, looking for full-time work 6% 15%
Employed full time 51% 27%
Attending graduate school, not employed 6% -
Attending graduate school, employed part time or
full time
14% -
Military 3% 2%
Self-employed 0% 3%
Volunteer 3% 1%

5. Unfulfilled Expectations of Recent College and High School Graduates
5
Recent High School Graduates, 2006 to 2011
 Only 27% were employed in full-time jobs
 Twice the level of unemployment 10 years
ago
 Median hourly wage was $9.25 — $2.00
above federal minimum wage
• Wages of high school graduates declined
by 11% in 10 years

6. Unfulfilled Expectations of Recent College and High School Graduates
6
Recent High School Graduates,
2006 to 2011 (cont.)
 Of those who were working:
 Most believe they will need additional
education, but 40% reported they could not
afford to attend college
• 75% in temporary jobs
• 60% in part-time jobs
• One in ten received health care and
retirement benefits

7. Unfulfilled Expectations of Recent College and High School Graduates
7
Recent College Graduates, 2006 to 2011
 Only half of recent college graduates were
employed full time
 Combined unemployment and underemployment
rate is the highest level in more than a decade
 Median earnings: $30,000 before recession;
$27,000 thereafter
• 15% worked part time
• 20% in graduate school
• Wages of college graduates declined by 5.4% in
the past decade

8. Unfulfilled Expectations of Recent College and High School Graduates
8
Recent College Graduates, 2006 to 2011 (cont.)
 40% are working in jobs that do not require a
college degree
 More than 75% worked full- or part-time jobs
during college years
 Average student debt: $20,000 — more for
those who attend private colleges
 Most of those enrolled in graduate school are
borrowing additional funds

9. Unfulfilled Expectations of Recent College and High School Graduates
9
Young Graduates are Not Sure they are
Well Prepared for Work
How well did your college/high school education prepare you...
16% 12% 14% 15% 17%
24%
10%
18% 16%
24%
23%
18%
24% 24%
27%
37%
46%
33% 32%
16% 16%
5%
7%8% 9%
0%
25%
50%
75%
100%
To look for a
full-time job
(college
graduates)
To get a full-
time job
(college
graduates)
To be
successful in
your full-time
job
(college
graduates)
To get a full-
time job
(high school
graduates)
To be
successful in
your full-time
job
(high school
graduates)
Not appropriate Not well at all Not very well Pretty well Extremely well

10. Unfulfilled Expectations of Recent College and High School Graduates
10
Young Graduates Doubt they will do Better
than the Previous Generation
People in your generation will have...
(compared to the generation before you)
High School vs. College Graduates
56% 61%
30% 21%
14% 17%
High school graduates College graduates
Less financial success About the same financial success Greater financial success

11. Unfulfilled Expectations of Recent College and High School Graduates
11
Potential Policy Directions
 Increase completion rate — degree
attainment
 Integrate academic, financial, and career
information and advice
• Transparency

12. Unfulfilled Expectations of Recent College and High School Graduates
12
Potential Policy Directions (cont.)
 Prepare high school and college students for
jobs and careers
 Greater alignment between educational
preparation and employers' needs
 Better preparation of students in core
competencies
• Increase internships and cooperative
education programs

13. Unfulfilled Expectations of Recent College and High School Graduates
13
Sources
 National surveys of recent high school and college
graduates, 2006 to 2011, conducted by the Heldrich Center.
 C. Van Horn, C. Zukin, and C. Stone, Chasing the American
Dream: Recent College Graduates and the Great Recession
(New Brunswick, NJ: Heldrich Center for Workforce
Development, Rutgers University, 2012).
 C. Van Horn, C. Zukin, M. Szeltner, and C. Stone, Left Out.
Forgotten? Recent High School Graduates and the Great
Recession (New Brunswick, NJ: Heldrich Center for Workforce
Development, Rutgers University, 2012).
 C. Van Horn, Working Scared (Or Not at All): The Lost
Decade, Great Recession, and Restoring the Shattered
American Dream (Rowman & Littlefield, 2013).

14. Unfulfilled Expectations of Recent College and High School Graduates
14
Contact Information
Carl E. Van Horn,Ph.D.
Professor and Director
John J. Heldrich Center for Workforce
Development, Rutgers University
www.heldrich.rutgers.edu
vanhorn@rutgers.edu
732.932.4100 x6305