Unemployment

Think 10.2% is bad?

Consider 17.5%. That is the unemployment rate when those who have given up looking for employment or are working part time and looking for full time employment are included as unemployed.

Supposedly the unemployment rate for college graduates fell to 4.7% from 4.9%. It certainly does not feel like it from my perspective. Interviewing for an entry-level attorney position, the interviewer suggested that because of the economy the firm would be able to offer a salary in the low $40K range and attract a qualified law graduate. This is in metro Boston, with the average law graduate over $100K in debt and making substantial other payments (rent, utilities, etc).

The problem is, even if an attorney accepts the low wage, he/she will continue to look for employment. This essentially keeps the attorney in the 17.5% of unemployed/underemployed and does nothing for the economy, as his entire salary is paying off his education. And no matter whether the college graduate unemployment rate is 5%, 15% or 0%, unless the 17.5% rate comes down, salaries will keep going down.

It could be worse though. The teenage unemployment rate is 27.6%. At least for their sake, many of them don't have monthly expenses of adults.