|Posted by Jerrald J President on March 3, 2018 at 8:45 AM|
Janelle Jones is a Research Associate at the Center for Economic and Policy Research, in Washington D.C. John Schmitt is a Senior Economist at CEPR. A College Degree is No Guarantee
The Great Recession has been hard on all recent college graduates, but it has been even harder on black recent graduates.
This report reviews evidence on the labor - market experience of black recent college graduates during and after the Great Recession. Key findings include:
In 2013 (the most recent full year of data available), 12.4 percent of black college graduates between the ages of 22 and 27 were unemployed. For all college graduates in the same age range, the unemployment rate was 5.6 percent.
Between 2007 (immediately before the Great Recession) and 2013, the unemployment rate for black recent college graduates nearly tripled (up 7.8 percentage points from 4.6 percent in 2007)
In 2013, more than half (55.9 percent) of employed black recent col lege graduates were “underemployed” – defined as working in an occupation that typically does not require a four - year college degree. Even before the Great Recession, almost half of black recent graduates were underemployed (45.0 percent in 2007).
Black re cent college graduates in science, technology, engineering, and mathematics (STEM) majors have fared somewhat better, but still suffer from high unemployment and underemployment rates. For example, for the years 2010 to 2012, among black recent graduates w ith degrees in engineering, the average unemployment rate was 10 percent and the underemployment rate was 32 percent.
In part, these outcomes reflect the disproportionate negative effect of economic down turns on young workers and , in part, they reflect on going racial discrimination in the labor market. A college degree blunts both these effects relative to young black workers without a degree, but college is not a guarantee against either set of forces.