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The unemployment rate for newly graduated academics is getting worse



<p class = "canvas-atom canvas-text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "New data from & nbsp ; New York Fed & nbsp; highlights how the graduates 'job situation is deteriorating. "Data-reactid =" 15 "> New data from the New York Fed highlights how the graduates' job situation is deteriorating.

While the rest of the labor market trends are favorable, graduates are likely to be unemployed than the base American working population. That has not happened before in the New York Fed data dating back to 1990.

While unemployment for all academics aged up to 65 (blue line) is trending lower – currently near the lowest level in this current economic cycle – the market for graduates (red) is bucking the general trend.

Based in a robust US labor market, this is "an important and worrying trend to look at because it never fell to previous cycle lows," DataTrek's Jessica Rabe wrote in a note. "Although those who graduate from college usually get hired before less-educated workers."

(Source: New York Fed)

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The rates are calculated as a 12-month moving average. Newer academics are defined as those between the ages of 22 and 27, with a bachelor's degree or higher.

The picture above shows how unemployment for newly graduated students has risen, from 3.8% in May to 4% in September. In contrast, unemployment for total employees was 3.6% in September.

The reason the red line "wandered upward" was due to lack of expertise, said chief economist Joe Brusuelas, RS of Yahoo Finance.

We are late in the business cycle, so it has caught everyone's attention, ”he explained. "There is some concern about unemployment … [but] that may have more to do with the level of experience and difficulty finding entry-level work right now for the educated class."

Fresh candidates are having difficulty because of the lack of experience and relevant education, according to Brusuelas. "There is a mismatch between the skills," he noted. "[And] It might weigh employment in that year."

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – -sm Mt (0.8 em) – sm "type =" text "content =" Moody's Analytics Chief Economist Mark Zandi & nbsp; previously told Yahoo Finance & nbsp; that the trend also "probably partly reflects greater caution in businesses given the waning economy and uncertainty created by the trade war. "data-reactid =" 48 "> Moody's Analytics chief economist Mark Zandi previously told Yahoo Finance that the trend also" likely reflects in part greater caution from companies given the declining economy and uncertainty created by the trade war. "

Yet, despite bleak prospects, "is there a risk to the economic outlook? Certainly not at this time," added Brusuelas.

Arizona State University graduates are seen in the seats during their graduation in Tempe, Arizona. (Photo by Joshua Lott / Getty Images)

<h2 class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text "content =" Student debt crisis could get worse "data-reactid =" 70 "> Student debt crisis could get worse

Unemployment is much more important when taking into account the level of student debt of new graduates.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "te xt" content = "Borrowers currently have almost & nbsp; $ 1.5 trillion in outstanding student loans . Fresh graduates owe an average of $ 29,200 in debt, according to a report from the & nbsp; Institute for College Access & Success. " data-reactid = "72"> Borrowers currently have nearly $ 1.5 trillion in outstanding student loans. Fresh candidates owe an average of $ 29,200 in debt, according to a report from the Institute for College Access & Success. [19659027Nearlyonequarterofthecontacteddirectlywithintheircorrectcorrectlyandcontinuedofthecontinuedofthecorporatereport

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = " The borrowers endured, have inspired a number of solutions, from reforming the & nbsp; existing system & nbsp; to forgiving & nbsp; student debt completely . "data-reactid =" 74 "> The financial difficulties these borrowers endured have inspired a number of solutions, from reforming the existing system to forgiving student debt completely.

And if crime and delinquency were to increase, it could possibly affect the broader US economy.

“Debt has served as a long-term drag on the demand for housing and cars. It has a real macroeconomic component, ”Brusuelas said. "At some point this has to be addressed."

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Aarthi is the author of Yahoo Finance. She can be reached at aarthi@yahoofinance.com Follow her on Twitter @aarthiswami . "data-reactid =" 84 "> Aarthi is the author of Yahoo Finance . She can be reached at aarthi@yahoofinance.com. Follow her on Twitter @aarthiswami .

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Read more: "data-reactid =" 85 "> Read more:

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8 cm) – sm " type = "text" content = " Follow Yahoo Finance on Twitter Facebook Instagram Flipboard SmartNews LinkedIn YouTube and reddit . "data -reactid =" 91 "> Follow Yahoo Finance on Twitter Facebook Instagram Flipboard SmartNews LinkedIn YouTube and reddit .


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