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Friday, June 14, 2013

The Value of a College Degree, Around the Globe


 


Last week's U.S. jobs report was about as expected, with employers adding 175,000 jobs in May, according to the U.S. Department of Labor. And again, one group stood out: college graduates.

Amid the debate about college costs and the value of a university degree, in May, 7.4% of high school graduates were unemployed, while just 3.8% of university graduates were without a job, according to seasonally adjusted data from the US Bureau of Labor Statistics (BLS). That trend — of almost double the unemployment rate for high school grads compared with college grads — has largely held steady even amid the U.S. recession. Those with no high school degree were the worst off, with an unemployment rate of 11.1%.

Kathleen Kingsbury writes for BBC Capital that the trend isn't one limited to only American workers. Workers with a university degree are more likely to be employed in many countries across the globe, she writes in "How crucial is a degree around the world?"
 
"A university education, for instance, offers Europeans a significant boost. In 2012, the 27 countries in the Euro zone had a total unemployment rate of about 10%, according to data from Eurostat, the EU agency that tracks statistical data for member states located in Luxembourg. Yet for college graduates, unemployment was about one-third lower, at 6%," Kingsbury writes. 

Even in a country like Spain, where unemployment is expected to stay above 25% through 2016, university graduates have an advantage, with a jobless rate of 17%.

There are exceptions to the overall utility of a college degree when it comes to joblessness — for instance, when an economy is booming or when high school prepares people better for jobs. In these cases — like in Germany or in Japan — university graduates barely get an edge.

And there are some stark contrasts between younger graduates and more experienced university degree-holders. For instance, back in Spain, "45% of university graduates aged 16 to 24 are unemployed, according to the country’s national statistical office, far higher than the overall unemployment rate for university graduates," Kingsbury writes. The BBC took a deep dive into the plight of the young and jobless at the end of 2012 — including a look at various measures around the world to help young people find work.

But the story points to evidence that even for those young grads, the degree is worth it down the road. Read more here

What do you think? Even with the current state of unemployment among young degree holders, particularly in Europe, does this bigger picture of employment of college grads versus high school grads, impact your perception of the value of a degree?

(Photo: Getty Images)
Originally Posted on: Linked In by: Jennifer Merritt

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