People without college degrees are experiencing one of their lowest unemployment rates of the past 20 years, according to a new analysis from the Burning Glass Institute. The reason? Supply and demand, says Chief Economist Gad Levanon: "There’s a rapidly growing supply of people with a bachelor’s degree, and you have a rapid decline of people who don’t," particularly tradespeople. On an absolute scale, though, college grads still have a significantly lower rate of unemployment — around 2.7% for the year ending in July, versus 4.7% for those with just a high-school diploma.
Americans without college degrees are having one of the best job markets in years.
In fact, the unemployment rate for workers ages 22 to 34 who never graduated from college has rarely been lower in the past two decades, according to a new analysis by labor-market think tank Burning Glass Institute.
Now, though, just as job hunters without degrees are having one of their best runs, those with college educations are having one of their worst. And those with advanced degrees or in fields such as science and technology are having an even harder time than usual.
That divergence of fortunes is a departure from what the U.S. economy has seen for years, and much of it boils down to supply and demand: There aren’t enough skilled tradespeople to go around, for example, as older generations retire and immigration drops.