Millenials May Be Destined for Dead-End Jobs, Says Study
As news of a potentially disastrous effect that record amounts of student loan debt could create on the economy continues to emerge, the Wall Street Journal is reporting that things are looking even worse for Millenials in terms of job prospects, saying that even an improvement of the economy could still have recent college grads working low-pay, unskilled jobs, or simply unemployed.
The Journal points to a paper released by the National Bureau of Economic Research on Monday that found that at this point of the Information Age, fewer people are needed to create and install new technology systems for American businesses, making hi-tech majors, considered by many college students to be the one assurance of employment in today’s economy, increasingly less in-demand.
Paul Beaudry, an economist at the University of British Columbia and the author’s paper, explained that this turn around, which he has dubbed “The Great Reversal,” is the result of technology becoming more self-sufficient.
“Once the robots are in place, you still need some people, but you need a lot less than when you were putting in the robots,” said Beaudry.
Beaudry’s research points to how the mentality of the Dotcom bubble in the late 90′s has carried over to today, as the number of graduates with degrees from the entire spectrum of technology fields, including both technical workers and managerial professionals, has continued to rise despite a steady decrease in the number of available jobs.
Worse, the abundance of these skilled laborers and the increase in competition has lead to less-skilled workers, or those who simply lack up-to-date training, being pushed out of the job market altogether.
The news is a further blow to a generation which has become famous for being “under-employed and over-educated” by sporting the most extensive education in American history while receiving the least amount of payoff, making the sight of graduate school alumni stuck in menial food service positions increasingly common.
An earlier report by the Center for College Affordability and Productivity found that 48 percent of college grads worked jobs that did not require a college degree, while 38 percent were employed in positions that don’t even require a high school diploma.
As Millenials have long heard that a college degree is the only savior from a life of poverty and unemployment, Beaudry’s research suggests that the sheer abundance of college grads competing for limited jobs has done the opposite, leaving record numbers of college graduates with unparalleled amounts of student loan debt.