Tuesday, August 02, 2011

Hiring for Professional/Business Workers is Strong

A CD post yesterday highlighted the huge differences between workers with a college degree and those without a high school degree, in terms of employment levels and jobless rates.
  
Here's more evidence that might support the idea that college graduates are doing much better in the labor market today compared to workers without a high school degree.  The chart above shows that there has been more hiring activity for the job category "Professional and Business Services" than for hiring activity overall (data are from the BLS' "Job Openings and Labor Turnover" division).  

Since the recession ended in June 2009, hiring for "Professional and Business Services" has increased by 39%, which is more than three times the rate of overall hiring (12.4%).  Assuming that most jobs for "Professional and Business Services" require a college degree, the increased hiring activity for this group of workers would support the notions that a) it's the less educated workers that are struggling in today's job market and b) the jobless recovery is affecting college educated workers much less than workers without a high school degree. 

Thanks to Juandos for the idea.  

4 Comments:

At 8/02/2011 5:50 PM, Blogger AIG said...

And yet, aren't half the people who comment on this blog claiming that college degrees are "useless" and that there is a "bubble" in higher education, etc etc? Doesn't look like it to me. I'd say that some college degrees...are under-priced!

 
At 8/02/2011 6:38 PM, Blogger cluemeister said...

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At 8/02/2011 6:41 PM, Blogger cluemeister said...

I think you're assuming people are being hired because of their college degrees.

I think it has everything to do with the lack of construction employment. For instance, McDonald's has been hiring like crazy.

If you factor out the devastation in the construction economy, (no degrees required) what does your chart look like?

 
At 8/02/2011 11:03 PM, Blogger AIG said...

But college grads also have considerably lower unemployment numbers, as well. And higher wages. So again...where is this notion that "college ain't worth it", coming from? Or that it is "overpriced"? I'd say it is very underpriced, especially in state schools.

 

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