During any economic rough spot, studies of previous downturns and recessions start popping up all over the place. Sometimes they offer a little light at the end of the tunnel, but some new studies show just the opposite for recent graduates. Entering the worst job market in 25 years isn’t the only cross to bear for these recent grads, studies are showing that the effects of the recession could last for 15 more years before getting back to normal.
The example offered by the Wall Street Journal is sobering:

For example, a man who graduated in December 1982 when unemployment was at 10.8% made, on average, 23% less his first year out of college and 6.6% less 18 years out than one who graduated in May 1981 when the unemployment rate was 7.5%. For a typical worker, that would mean earning $100,000 less over the 18-year period.

The article is filled with other, spooky statistics, but the point is pretty easy to grasp: Unemployment climbs because fewer jobs are available. Layoffs plus fewer jobs available means a glutted job market, which leads to people snapping up jobs wherever they can. As relevant experience can be difficult to come by in tough times, recent graduates are turning towards internships and entry-level positions that are less than desirable.

Over Qualified? No Problem.
My local schoold district saw an incredible jump in the number of substitute teachers this past year. Two years ago, teaching students were being strongly encouraged to pick up sub positions. Schedules were rearranged, extra credit was given–there was a district-wide shortage of substitutes. Schools had to juggle available staff just to get through the day without teacherless classes. Today, on the other hand, there are so many substitute teachers that few are able to make a living on the scant openings. This is good for schools, because they don’t have to put up with some of the terrible subs that were the only option before, but awful for education students trying to make ends meet while gaining experience.

It’s happening across the country and across the board. Recent graduates are getting stuck with sub-entry-level positions, hoping to move up or at least have something to put on a résumé. The positions that were once going to the recent graduates are now being filled by candidates with years of experience.

But What About My Student-Loan Debt?
The default rate on student loans is skyrocketing because of this situation. There are more students with more debt coming out of our universities than ever before, and they can’t get jobs that pay enough to pay off their debt. When the economy was doing well, the student-loan debt issue was bad enough. Today, we’re left wondering what will come of it all. The Gen-Xers may be just finishing paying off their debt, but Generation Y is facing a far greater challenge.

Steps are being taken by the new administration to change the face of financial aid, but how many classes are going to fall through the gap before these new plans take effect?