Recent College Graduates Slacking in Income Growth
Time to throw out all the brochure-based projections. Recent college grads now have lower income growth rates than the general public. Isn’t the whole point that, yes, you deferred earning for 5 years and, yes, you start at a lower wage rate than your friends who’ve been working for the past 5 years and getting raises and, yes, you’re drowning in debt… But you’re going to catch up to those non-college suckers fast? Well, the most recent economic data says that last part isn’t true.
“From 2007 to 2014, the median weekly earnings of full-time U.S. workers rose 15%. Over the same period, the earnings of recent college graduates with full-time jobs rose just 5.9%. Both figures are unadjusted for inflation.
““With few exceptions, wage growth has been limited in all occupational groups for recent graduates,” the economists wrote, presenting “a clear pattern of low earnings growth for most categories.” The wage gap has been larger and more persistent than in past recessions, which they attributed to underlying weakness in the economy.”