Case Analysis of Unemployment among College Graduates (Essay Sample)

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Case Analysis of Unemployment among College Graduates
In principle, a college education has been viewed as a critical investment that serves to benefit the individual for a lifetime. However, the Great Recession that hit in 2007 to 2009 left the labor market crumbled. Therefore, with its sluggish recovery college graduates are finding it hard to find a job (Abel, Deitz, and Su, pg. 1). In essence, they are forced to either stay unemployed, work part-time or accept lowly paying jobs that do not match with their qualifications.
In 2010, during the recovery period of the Great Recession college graduates’ unemployment rates peaked at approximately 5%. However, recent graduates’ unemployment rates were more than 7% hence, supporting the claim that college graduates who just ventured into the labor market found it hard to secure a job (Abel, Deitz, and Su, pg. 2). Furthermore, recent research carried out in 2013 showed that newly graduates’ unemployment rate stood at 4.3% compared to 2.9% for college graduates in general.
In essence, unemployment amongst the newly graduates is caused by the increase in an unpaid internship. According to Forbes magazine internships, have been diluted from serving their original purpose that in the past was the apprenticeship. Significantly, companies considered to be highly prestigious started offering unpaid positions and as a catalyst well-qualified candidates were willing to battle for free (Stone and McCraw, pg. 70). Moreover, the today’s reality is that the entry level for applicants with a college degree does not meet the standards set outside. Therefore, the experience such candidates’ posses do not qualify them for the given positions out there. On a similar note, the rate of retirement among the aged is little meaning very few are living the labor market to create room for the newly graduates.
In principle, the Keynesian theory of unemployment describes unemployment as something that is involuntary. Therefore, according to the theory college students are victims of factors in the labor market that they cannot control (Fischer and others, pg. 49). However, the permanent income theory explains that employers analyze the economy’s depression or boom and adjust labor intake to meet price change in the economy hence, the rise in unemployment during the Great Recession.
Conclusion
In essence, the labor market is under the laws of demand and supply. Therefore, to reach a state of equilibrium the rate of retirement should increase in the sense that an age limit of 50 years should be put in place. Similarly, unpaid internships should only be for the apprenticeship that should only last for three months. Moreover, college stude...