The Employment Rate Of College Graduates Has Decreased Dramatically Since 2007

Nobody is surprised that college graduates have a lower unemployment rate than those with less education.  Some argue that our current high rate of unemployment is due to a skill mismatch between the demand for skilled labor and the supply of skilled workers.  That is, we would have lower unemployment if we had more college graduates.  The graph below tells a different story.  The employment rate of college graduates has fallen significantly since 2007.  The decline in the employment rate of college graduates is similar to the decline in the employment rate of high school drop outs.  The supply of college educated workers is growing faster than the demand for college graduates.  The US has a job growth problem and not a skill shortage problem.