Job Losses in U.S. Spreading to Workers With College Degrees

In this recession, not even an education can shield you from losing your job.
The unemployment rate among workers with college degrees rose to 3.8 percent, the highest level since records began in 1992, the Labor Department reported today. The rate for workers with some college or an associate’s degree also climbed to a record, at 6.2 percent.“This particular recession is hitting workers with more levels of schooling harder than past recessions have hit them,” said Heidi Shierholz, an economist at the Economic Policy Institute, a Washington research group typically aligned with the labor movement. “It’s just a deeper recession, it’s more widespread, its tentacles are reaching everywhere.”According to EPI data, the level of unemployment among people with college educations is the highest since January 1983. With banks merging and manufacturers like Caterpillar Inc. eliminating management positions, the ranks of college-educated unemployed may continue to grow, economists said.“This is a deeper recession and it has really accelerated over the last several months,” said Christine Owens, executive director of the National Employment Law Project. “There will be income losses throughout the economy.”Consumer spending, which accounts for about 70 percent of the economy, dropped 3.5 percent in the fourth quarter, following a 3.8 percent fall in the previous three-month period. It was the first time decreases exceeded 3 percent back-to-back since records began in 1947.
Job Losses
The U.S. lost 598,000 jobs in January and the total unemployment rate soared to 7.6 percent, the highest since 1992, from 7.2 percent in December, the Labor Department said today.According to today’s report, 45.2 million workers, or 30 percent of the civilian labor force, have at least a bachelor’s degree. That was the biggest share of civilian workers.President Barack Obama today said rising U.S. unemployment shows the urgent need for government action on the economy and any delay of his stimulus plan in Congress would be “inexcusable and irresponsible.” He also announced the formation of a panel of advisers, led by Paul Volcker, a former chairman of the Federal Reserve.