English
I. Introduction
Many countries worldwide vary in their rates of educated joblessness or underemployment. Some have increasing rates of underemployment and unemployment among college graduates while others have recurrent records for having so. Various causes and effects showcase why college graduates end up without jobs or do not land on jobs in line with their chosen career path are also many to enumerate and elaborate. For instance, although private companies and government agencies contribute to providing jobs for those who earned college degrees, there are many reasons why educated unemployed and underemployed individuals still are many. Hence, the biggest obstacle college graduates have to overcome includes underemployment and unemployment. In this essay, not only will I discuss the causes and effects of the said phenomenon based on research findings, but also offer some measures on how to resolve the problem.
II. Body
First, the reason behind unemployment and underemployment is a not-so strong economy for the influx of graduates each year and graduates the previous years that search for work and yet remain jobless or underemployed. As years pass by, cumulatively, there is a narrowing of the bottleneck among graduates who find it hard to find permanent position according to their chosen specialization. Institutional economic inefficiency and ineffectiveness is the cause of the unfortunate plight of many graduates. As such, some graduates prefer being underemployed, given the chance, rather than unemployed; hence, they work in odd jobs or service industries until such time they already have experience and opportunities to find work related to their chosen field. Realty dictates, however, that inadequate job openings are many compared to the ratio of graduates.
Second, mismatch between the academic and industry needs is another reason. Many employers select and hire college graduates based on a number of criteria. Other than education and specialization, they also want those with outstanding on-the-job training performance and recommendations. When graduates do not meet some of the criteria (such as, experience, training), employers tend to choose from their pool of applicants. Because there are many prospective applicants to choose from who have different job competencies and skill sets while there are only a few vacant jobs or openings, the remaining college graduates or job applicants are at the losing end in such a specific scenario. In some cases, there are high-level job positions that are vacant but there are graduates who do not possess the expertise required for the job.
Third, some graduates are either overqualified or under-qualified for the position they are eyeing for. Hence, these prospective educated workforces find it elusive to land on jobs they majored in because they have insufficient continuing professional training, work experience, inter alia. Hence, even when there are available jobs or employment vacancies for many educated individuals, they prefer instead to voluntarily become unemployed because they do not want to work. Other than college graduates being choosy to apply for a particular job (that is, given their educational background), they expect high starting salary and proximity in their family’s residence. Similarly, if the college graduates have no outstanding student loan debts and are not the family’s breadwinners, they can delay themselves having jobs at the moment. However, a 2014 study conducted by Aaronson and his co-researchers implies that greater slack in the labor sector was one of the factors prior to the 2008 recession.
Fourth reason for college graduates’ joblessness and underemployment is a combination of the aforesaid reasons and other related or non-related causes. Not only is there no job opening in the chosen career path of graduates but because it is a low-paying job, they do not have the interest to work. They are not the breadwinners of their family and they can depend on their parents who have wealth. Additionally, although a company has high-paying vacant job position, insiders or current employees are the ones who fill them up. Hence, college graduates do not have the initial opportunity to advance later in their career unless they start out at a lower-level and low-paying work designation.
There are other reasons why college are unemployed or underemployed, such as superannuated skill sets, use of advanced technology by industry that displaced workers, to mention a few. Nonetheless, as college graduates face one of the biggest challenges in their life, the effects of unemployment and underemployment may be devastating to them – mentally, emotionally, socially, and economically.
First, college graduates who cannot land on jobs they want, due to a weak economy, experience mental, emotional or simply, psychological distress. Whether fresh from college or unemployed or underemployed for sometimes, they have mixed feelings about their current plight and future. Worse, if they have no other individuals they could depend on, they feel sorry concerning their present state. If they already have a family of their own, such as a spouse and children, the more they would most likely use social ties and support to reduce the effect of unemployment on them (Bucaite-Vilke). They are still fortunate should they have caring parents who are affluent where they can stay unemployed or even underemployed just to show to themselves that they can fulfill their obligations, anyway.
Second, the effects of unemployment and underemployment resulting from a mismatch between talent pool and business demands not only sets off changes in the well-being of educated graduates, but also other aspects of their social and economic life (Young). They have to look for jobs while maintaining their image of being self-sufficient. If they could confide to someone their predicament, other people (such as friends) could most likely help them to find a job. However, in case their college friends, for instance, are also unemployed or underemployed, they become a bunch of the socio-economic burden. It is good if they have capital to start their own business. But in case they have no financial means to put up their own income-earning venture, they have just to wait for the process of being employed to materialize.
Third, a college degree or over-education is not a guarantee to secure a high-paying job. Many graduates, who remained underemployed for some time, still look for better jobs that would align with their field of specialization. Given the time to continue with their professional education or training, they later become overqualified for an entry-level position in their chosen career path. Over time, they cannot get the desired job that they want because employers require that a prospect for a high-level position should come from within the company and not someone who is a newbie or who has no proven track record yet within the company. Having said that, jobless or underemployed college graduates have diminishing satisfaction over time because their motivation also was affected, or worse, overwhelmed by their future bleak prospect.
Fourth, high unemployment and underemployment rates due to insufficient jobs and inadequate skills have negative effects not only on college graduates and their respective families, but also to society as a whole. The economy suffers when there is a high unemployment rate, not to mention underemployment. In many part of the globe, crime rates are also on the rise when people have to make ends meet (Andresen). Consequently, college graduates are likewise affected, as well as, other sectors of society. When there are low profits among enterprises, businesses, tourist spots, inter alia, the governmental and private sectors lose revenues and profits. With fewer taxes for the public coffers, fewer jobs are being generated. Some investors will just course their money in other countries where there is a bright future for them to open up businesses or invest more.
Other than efficacious monetary policies, the government should enhance more its fiscal policies such that there are cut on taxes and increase government spending. When it comes to tax cuts or reliefs, it should be instituted among the key economic drivers, such as small businesses. In terms of government, private companies and consumer spending solutions, it should be on cost effective solutions through education, construction jobs, mass transit, and other public work projects – and less on military spending where less number of individuals benefit. Consequently, the economy would become stimulated once fiscal policy changes are passed, effected, and executed. With increase government spending, people would be persuaded to spend for greater demand and a much better tomorrow. As more and more consumers use their money, businesses would grow and would lead to more businesses, which means hiring of more college graduates.
Besides monetary and fiscal policy innovations, the government should continuing improving its standard or rule-based policy concerning unemployment benefits so that the unemployed, specifically, will have the impetus to recuperate or extricate themselves from their current or recurrent situations (Toler). When a portion of government funds is allocated to the unemployed, such unemployed individuals would most likely spend their money for their basic needs (such as food, clothing, etc.). Because of the flowing cash around, manufacturers, wholesalers and retailers will have to catch up meeting the demands. As such, businesses have to hire more workers, purchase more raw products, and offer more services. A dynamic micro-economy would later affect the macro-economy as more jobs are created and there is less dissatisfaction among citizens.
There are other ways the government can help resolve unemployment as its use its financial reserve and other resources. It can reduce the grants, gifts and incentives it provides to large corporations to avoid unfair competition against small scale enterprises and businesses. Additionally, it can cease from mandating unjust regulations and amend laws that will be beneficial for the most number of disadvantaged and marginalized sectors of society. Within a certain period, the number of unemployed and underemployed would be lessened as more job opportunities are offered to constituents. Likewise, the government and its agencies should have a federal and state level database for storing the credentials of its citizens so that updates are provided in real time and concerns of college graduates who are underemployed and jobless are evident among policy makers, politicians, local sectors, and so forth.
Individually, college graduates who are currently challenged by underemployment and underemployment should never lose hope. There many ways to counter life’s pressing problems, no matter what the economic and social conditions are. College graduates should continue to look for their dream jobs as entrepreneurs or company staff. They can enlist themselves using online job search databases so that job hunting specialists can help them find work. Likewise, college graduates should also seek redress from their academic institutions and the government regarding job generation. It is high time to turn unturned stones by taking the initiative to offer grievances and concerns to the people who know best how to solve employment problems. Given that there are many individuals around the world who are underemployed and unemployed, isn’t it the right time to create an online database for the unemployed and underemployed? I think it is not mainly the fault of college graduates to remain idle in their lives given that they want work and there is lack of opportunities for them to use their abilities, values, attitudes and knowledge. Anyway, one of the best solutions to unemployment and underemployment is to have oneself self-employed.
III. Conclusion
Worldwide, each year and for the past decades or so, unemployment and underemployment among college graduates are no longer in passé. As more and more people value education and academes do not keep constantly updated with the demands of the corporate world, there will always be a mismatch. When the government focuses on military rather than citizens’ spending, monetary and fiscal policy issues will stay. As college graduates do not have the initiative to help employ themselves, they will remain idle. Even when they update their skills, training or education, but are not motivated enough to perform at their best, underemployment and unemployment among the next batches of college graduates would increase even more. A highly lucrative job is not an assurance that a college graduate who become employed later will remain satisfied with his or her current employment. Personal and interpersonal characteristics (such as positive attitudes) are necessary for the educated graduates who are unemployed or underemployed to rise above any challenges.
Works Cited
Aaronson, Daniel, et al. “Declining Labor Force Participation and Its Implications for Unemployment and Employment Growth.” Economic Perspectives 38.(2014): 100-138. Academic Search Complete. Web. 26 April 2015.
Andresen, Martin A. “Unemployment, GDP, and Crime: The Importance of Multiple Measurements of the Economy.” Canadian Journal of Criminology and Criminal Justice 57.1 (2015): 35-58. Academic Search Complete. Web. 28 April 2015.
Bucaite-Vilke, Jurga. “Can Unemployment Restrain? Community Action, Social Support Networks and Public Participation.” (English). Culture and Society: Journal of Social Research 5.2 (2014): 37-60. SocINDEX with Full Text. Web. 27 April 2015.
Toler, Emily. “Without Good Cause”: The Case for a Standard-Based Approach to Determining Worker Qualification for Unemployment Benefits.” Washington Law Review 89.2 (2014): 559-601. Academic Search Complete. Web. 27 April 2015.
Young, Cristobal. "Losing A Job: The Nonpecuniary Cost Of Unemployment In The United States." Social Forces 91.2 (2012): 609-634. Military & Government Collection. Web. 28 Apr. 2015.
