WHAT’S HAPPENING TO RECENT COLLEGE GRADUATES IN TODAY’S

ECONOMY?

Carl E. Van HornProfessor and Director

John J. Heldrich Center for Workforce Development

March 2012

What’s Happening to Recent College Graduates in Today’s Economy?

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Unfulfilled Expectations:

Recent College Graduates Struggle in a Troubled Economy

A Heldrich Center for Workforce Development

Work Trends Report

by

Carl Van Horn and Cliff ZukinRutgers University

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Goals of the Survey

To explore the connections between college and initial jobs in the workforce

To understand the experiences of recent college graduates as they search for a job

To examine how recent college graduates have been affected by the recession

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Who We Surveyed

National Random Sample of 571 graduates

Who graduated in the years 2006-2010 with a four-year college degree—All Majors included

Between the ages of 22-29

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Where are these Graduates Now?

53% are employed full time

21% are attending graduate school

• 14% are looking for full-time jobs

• 16% are not employed in any fashion

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What We Asked About

College Experience

First Job

Current Job

Financial Shape

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College ExperienceMost students needed (government) help to pay for college

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Work Experience During College

Most students worked while in school

83% worked while in school

23% worked full time

50% said the jobs they held while in school were related to their academic major

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Paying for College Over half graduated in debt

The median amount of

money owed was

$20,000

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Assessing the Value of College

75% believed their college education prepared them to be successful in their first job

61% believed their college education prepared them to get their first job

Only 42% believed their college placement or career guidance office prepared them well to look for a job

Generally students felt their education prepared them for the workforce

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What Graduates Would Have Done Differently

Many would do something different if they were to do it again

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Was College Worthwhile?Most believe their education to be worthwhile

But 62%believe they will

need more education to have

a successful career

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College Graduates’ First JobMost students found a job related to their field of study

Only 52% said a four-year degree was required for

their job

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Opinions about the First Job Many graduates see their first job as a stepping stone to a career

But only 27% are firmly started

on a career

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Adjusting to Labor Market RealitiesMany had to make accommodations to get their first job

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First JobGraduates were more satisfied than dissatisfied

with their first job

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First Job SalariesThe recession affected salaries, so did…

Median Pay for Recent College Graduate

Median Salary

All Graduates $30,000

Pre-Recession 2006-07 $30,000

Recession 2009-10 $27,000

Did Internship $34,680

No Internship $28,000

Male $33,150

Female $28,000

Worked in grad area $34,510

Didn't work in area $28,000

First job very/somewhat related

$35,000

First job not very/not at all related

$25,000

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Stuck on TrackTheir current jobs are not much different than their first

jobs

Job Statistics First Job Current Job

Job Salary-Median $30,000 $32,000

Job is full time 97% 93%

Job requires a college degree 52% 53%

Job paid hourly 50% 54%

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Stuck on TrackTheir current jobs are not much different than their first

jobsJob’s Relation to Education First Job Current Job

Very closely 44% 37%

Somewhat closely 26% 21%

Not very closely 13% 20%

Not at all closely 17% 21%

Total 100% 99%

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Financial ShapeMany graduates have debt

42% currently have financial debt

other than student loans, a

mortgage, or rent

35% of those 22 to 25 report being in debt,compared to

51% of those 26 to 29

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Getting Help to Pay the BillsMany accept financial help from their parents to pay for

living expenses

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Expectations about Financial Success

Most think their generation will be less financially successful than their parents

48% believe they will be

more successful than their parents