As in past recessions, young people just out of school face long-term negative job impacts
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Economists predicted that the Great Recession would have lasting effects on the careers of people who graduated early in the downturn. According to the National Association of Colleges and Employers, hiring projections for new graduates fell by 22% in thAs in past recessions, young people just out of school face long-term negative job impacts
Economists predicted that the Great Recession would have lasting effects on the careers of people who graduated early in the downturn. According to the National Association of Colleges and Employers, hiring projections for new graduates fell by 22% in the spring of 2009. One in two people who graduated then were underemployed in the first couple of years after leaving school, holding jobs that didn't require degrees, according to a Federal Reserve Bank of New York study. Normally, that figure is one in three. When the economy picked up, recession graduates had to compete with newer graduates for entry level positions. The longer it takes for young people forced to delay getting their careers underway, the worse their long-term prospects will be, whether or not they have obtained a higher education. Citing studies of earlier downturns, Till von Wachter, an economics professor at the University of California, Los Angeles, said it can take 10 to 15 years for recession graduates to catch up. These graduates typically start at lower-paying companies when they do find a job, he said, and then move to bigger ones with better compensation when the economy gets better. But moving up at those larger employers can take several more years. The same situation now faces Pandemic Recession graduates, reports Bloomberg News. Click here to get involved in phonebanking, textbanking or other crucial volunteer activities needed for the FINAL DAYS to deliver Pennsylvania for Democrats. Read more