by calculated risk May 12, 2024 08:21:00 AM
The first graph shows the unemployment rate by four education levels (all groups are 25 and over) through April 2024. Note: This is an update to a post from several years ago.
Unfortunately, this data only goes back to 1992 and includes only three recessions (2001 stock/tech bust, housing bust/financial crisis, and 2020 pandemic). It is clear that education matters when it comes to unemployment rates, with the lowest rate for college graduates at 2.2% in April and the highest rate for those without a high school degree at 6.0% in April.
All four groups were generally on the decline before the pandemic, and are now close to pre-pandemic levels.
Click on the graph to see a larger image.
Note: This says nothing about the quality of the work. As an example, a college graduate working for minimum wage is considered “employed.”
This poses an interesting question. What is the composition of the workforce by educational background, and how is it changing over time?
Below is data on the U.S. labor force by educational attainment since 1992.
Today, more than 64 million people in the U.S. workforce (age 25 and older) have a bachelor’s degree or higher. This is more than 44% of the workforce, up from 26.2% in 1992.
This is the only category that is trending upwards (although it has leveled off a bit recently). “University level,” “high school,” and “less than high school” are on the decline.
Based on recent trends, half of the workforce will probably have at least a bachelor’s degree by the next decade (2030s).
Some thoughts: Unemployment rates are generally lower for workers with bachelor’s degrees, so rising educational attainment will likely be a factor in lowering overall unemployment rates over time.
I also think that more education reduces the turnover rate, and education is a factor in lowering the weekly bill.
A more educated workforce is good for the future.
