College Graduates Face Tough Job Market

Its that time of year for another class of college graduates to celebrate the success of a completed diploma.

Unfortunately for many graduates, the transition from school to the working world might not be as pleasant as it has been for Americans in the past. Nominal wages are flat across the entire economy, and versus inflation that really indicates that wages are down relative to the cost of living. Entry-level wages are down in nominal terms, which means they're significantly down in real terms. Graduates in investment and financial sectors might not find many job openings after the recent string of layoffs, mergers, and cost-cutting in the banking sector. Real estate continues to slow down as well...But demand remains strong in medicine, education, and the sciences.

There's a risk of increased defaults on student loans, as the loans were issues when students were expected to enter an ever-increasing labor/wage market. Students without much debt can adjust consumption, costs, and expectations, but if they're loaded with loans already they may not have any way out of the cycle at this point. Unfortunately, this is just going to create an additional drag on financial sectors and lending companies!

Enjoy the graduation, the ceremonies, the parties. Don't get upset if you're not rich as soon as you graduated, its definitely not your fault that the economy is slowing down and under the weight of heavy public debt. Imagine, things would probably only be worse trying to secure a job without that degree.

Make use of all resources available, from online job searches to campus placement programs. It might not be too late to take on an internship if you can live at home for a few extra months. Jobs at the upper level of institutions will be opening up in the coming decade as more baby-boomers retire from the work-force.