“On Friday, David Leonhardt pointed out that the increase in the unemployment rate in November understated the weakening of the job market because many workers have given up looking for work. This is an important and ominous development in the economy. There is even more to the story.

The gap between declining employment and rising unemployment is greatest for college graduates because they are leaving the labor force at a rapid rate.

Last month, the number of college graduates who were working fell by 282,000, while only 2,000 more college graduates were classified as unemployed. Why this gap? Laid off college workers, who are unaccustomed to unemployment, may feel a stigma if they report themselves as actively looking for work, so they are uncounted among the unemployed.

Additionally, many nonworking college graduates may retire or return to school in response to weak job prospects.
Since March 2008, college-educated workers have been abandoning the labor force while high school dropouts have been joining it. Over the same period, the unemployment rate has risen more than twice as much for high school dropouts as for college graduates. “

the following was an excerpt from The Job Market for College Graduates By Alan B. Krueger

On a personal Note, I often am concerned at the information that is provided with regards to the job market. Rather than looking at the Most Important Criteria, which portrays a more accurate indicator of the economy — Payroll Per Thousand – many have consistently researched the unemployment numbers, which Extremely Understates the developing problem with regards to employment

The Labor numbers do not recognize the most Valuable numbers that define the Economic Stance of the country, they do not count the Long Term Unemployed, the Under Employed, the drop of wages and hours.. All which are stringent Indicators of the Misery Index.

We unfortunately for many years were mislead re the economy, as were told that the economy was doing well, and unemployment was consistent around the 4.3 – 4.7 mark for near 5 years, even though Long Term Unemployment for the past 5+ years was at historical Levels ; wages were continuing to drop, and we saw misclassification of “employees” grow at exhorbant numbers, and discrimination lawsuits were at an all time high. All indicators of the economic and employment stress that was coming our way

Unfortunately due to the misinformation we accepted that there was a looming war for talent and ignored that the CEO’s of companies were cheapening themselves out of labor and jobs.. Focusing on a Short Term reward, rather than a long term benefit for the company and the employees.. and today we see what happens when Reaganomics In Reverse takes effect
Karen Mattonen