Graduate unemployment, or educated unemployment, is unemployment among people with an academic degree.
Investment riskCollege and Universities cost thousands of dollars a semester not including books, room, and board. Tuition has gone up 1,120 percent in the last thirty years. Students have been given the impression that employers are looking for people who through test and grades, have showed that they are high achievers. In many recent surveys, that has been proved otherwise. Employers are looking for people who have learned to learn and have gained substantial communication skills as well as critical thinking abilities. Graduates aren't meeting the employers needs. Students are also strongly struggling with paying off their student loans. Without the desired and needed jobs, graduates are building debt and struggling to pay back their debt. 15 percent of the student borrowers default within the first three years of repayment. Many resort back to living at home and having to work multiple part-time jobs. Loans averaging about twenty to thirty thousand dollars. Higher education becomes an investment in which students are expecting to find a job with enough income to pay off the loans in a timely manner.
Graduate unemployment by geography
United StatesIn June 2013, 11.8 million persons were unemployed, putting the unemployment rate at 7.6 percent. The economy is a large contributor to these numbers. After 9/11, the unemployment rate had skyrocketed to 4.9% , even higher than it was in June 2013. The lack of jobs available and skills desired by employers are beginning to prove to be another major cause for graduate unemployment in the U.S. Graduates are completing school with a degree and a head full of knowledge, but still lack work experience to impress white-collar employers.
Educational attainment in the United States, Age 25 and Over (2009)Education Percentage
High school graduate 86.68%
Some college 55.60%
Associates and/or bachelor's degree 38.54%
Master's degree 7.62%
Doctorate or professional degree 2.94%
ChinaThe markets for China's graduates share much in common with those of other countries. China's recent upsurge in graduate unemployment relates to a number of things. One important aspect is its education policy-making and economic development as well as reforms in the economy and in its higher education. Recently, the annual growth in the numbers of new graduates, estimated at 7 270 000 for 2014, and in the rate of young unemployed graduates should logically bring about a withdrawal from higher education. Because with 8% annual growth, the Chinese labor market may well generate about eight million jobs, but these are mainly ones in manufacturing requiring low-level qualifications. Th ids rising enrollment made employment an issue and a serious challenge for China.Adding the graduates who are not employed last year,the number of the graduates can reach 8,100,000. However, there are 67,000 Chinese private business failing in the first half of 2014 which ever employed 34.2percent of the graduates in 2011. In 2013, it was estimated that at least 600,000 graduates from the prior year had yet to have found employment. This is adding to the approximately 7 million students who are leaving their universities with most want to enter the workforce immediately. According to the "2010 Chinese college students employment report" survey said, 15 professional to become a professional of the highest unemployment rates in china. The examine in enter oneself for an examination, must choose carefully. Law. Professional. The survey said that, from the 2007 -2009, Law major for three consecutive years to become one of the highest unemployment rate in bachelor's degree professional professional. Computer science and technology. The unemployment rate for three consecutive years the highest professional and computer science and technology. English. In many professional China University, English has become a high unemployment rate of professional. This tendency is still going on during 2010 to 2013.
Education policy-makingFrom 1900 to 1911, China abolished the civil service examination system and established a modern schooling system based on Western models.
- In 1922 China adopted the American model, and this dominated the Chinese higher education system until 1949.
- In 1952 all the higher education institutions, were brought under the jurisdiction of the communist government, and the Soviet model was adopted to restructure China’s higher education system, in order to serve the manpower needs for building a socialist China.
- In 1958 China made its first attempt to expand the higher education sector by establishing more than 23500 after-hours part work, part study colleges, in order to make possible an ambitious economic growth plan, the so-called Great Leap Forward for Socialist Construction.
- After 1978, with the end of the Cultural Revolution of 1966-76, China restored its higher education system and started educational reforms along with the move to a market-oriented socialist economy.
- In 1985 the central government announced its reform plan, and embarked upon a decentralization process which gave the local government and higher education institutions more autonomy.
- In 1993 the government launched further reform measures to increase accessibility to higher education, and a “user-pays” system was implemented along with fundamental changes in the job assignment system.
- From 1993 to 1998, higher education developed on the basis of numbers being controlled and limited, and quality being improved. The unduly low proportion of students in the tertiary sector brought out the negative impact on Chinese economic growth.
- In 1998, the Declaration of the World Conference on Higher Education organized by UNESCO in Paris made the Chinese government aware that a rapid increase in the enrollment figures in higher education would be a way to respond to the needs of opening up and the requirements of economic and social development.
- In 1999 the government decided to accelerate the pace of expansion, and enrollments in higher education institutions increased dramatically and continuously. The enrollment number in 1999 is 1678000 which has bean increased 47% by 1998 and in 2004 the number is 4473400 with the rate of 17,05% Student numbers climbed from 7.23 million in 2000 to 9.31 million in 2001 and 11.46 million in 2002. The figure of 2004 was almost four times as many enrollments as in 1998. And according to Bai, the establishment of the elite universities project called "211" achieved large amount of government funding,as the consequence,non-elite college found it difficult to survive. This caused increase of tuition fee and affected the quality of higher education,which, in turns influence the employment of graduates.
Economic developmentSince 1978, the government has been reforming its economy from a Soviet-style centrally planned economy to a more market-oriented economy to increase productivity, living standards, and technological quality without exacerbating inflating, unemployment, and budget deficits.
China’s economy regained momentum in the early 1990s. The Asian Financial Crisis of 1998-99 influenced economy slowing down of growth fell as a consequence of which experts submitted proposals to state organs to stimulate economic recovery. This involved increasing student numbers and intensifying the com-modification of education as a way of stimulating internal consumption.
The unemployment rate of graduatesIn 2008,the unemployment rate of graduates more than 30 percent. In this year the unemployment rate of graduates from top universities was 10%.
In 2009, the employment rate of graduates who have bachelor's degree ranged at 88 percent.
In 2010, the employment rate of college graduates rose 3.2% in 2009 reaching 91.2% .
In 2012, Prime Minister Zhu has warned that increased foreign competition brought by China's entry into the World Trade Organization could lead to a doubling of the official urban unemployment rate over the next few years from 3.5% to 7%, or around 30 million people.
In 2013,data released by the Chinese government indicated that the rate of graduate unemployment is 33.6%.
In 2014, based on official Chinese date, roughly 15% of the new grads are unemployed six months after graduation. However, Cheng, professor of political science states the authentic unemployment is a whisker away 2.3 million which means the rate is around 30%.