A good summary of the job situation for young Americans. Their unemployment rate is much higher than the average, and many have jobs that do not require a college degree. There are more young people with college degrees than the available number of degree requirement jobs. This is not unlike the situation described in an earlier post about education and the economy in China. We have a growing service sector with many low paying jobs, and China has a growing manufacturing sector with low paying jobs. Demand for higher paying, knowledge intensive jobs is not growing as fast as the labor supply. Another major difference, however, is that our college graduates have an average student loan burden of $24,000.
One of the proposed remedies to this situation is to stimulate demand in high tech solutions for the "green economy" that will require government subsidies to make it cost effective for businesses to undertake. This will be a hard sell to those who believe that our "college elite" is not part of the real America.