College graduates entering favorable labor market

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This spring's crop of college graduates should have plenty of options. New graduate hiring is projected to increase 31% in 2022 compared to 2021, according to recent data from the National Association of Colleges and Employers.

New graduate hiring is projected to increase 31% in 2022 compared to 2021, according to recent data from the National Association of Colleges and Employers."Hiring a mid-career professional is going to cost a business much more than it would to hire a new college graduate," said Shaun Dougherty, Ph.D, an associate professor of public policy and education at Vanderbilt University's Peabody College of Education and Human Development.

Only 67% of bachelor's degree recipients found a job in 2020, compared to 74% in 2021 and 76% in 2019. "There's a limited supply of workers with more experience," Dougherty said."Early-career workers offer an opportunity to hire motivated, skilled individuals, and to do so at a lower cost." "There's research that shows early career earnings and earnings growth can have a long-term impact," Dougherty said."Getting hired into a weaker labor market and having lower initial wages, growing at a slower rate, can show up twenty years down the line in the form of lower earnings."

 

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