Why the Class of 2015 May Actually Get Good Jobs
Not only are there more jobs available for 2015 college grads, there are more good jobs available to them, according to a new analysis by economists with the Federal Reserve Bank of New York.
The New York fed found that the underemployment rate for recent graduates—which had risen steadily with the exception of a fleeting dip in 2011—has finally started to fall. It has dropped about 2 percentage points since last June to 44.6.
That trend, coupled with a continued decline in unemployment for recent college grads, offers reason for hope for the class of 2015. Job postings for college graduates have increased by about 10 percent since last summer.
Related: The 10 Best Cities for New Grads to Launch their Careers
“While the demand for college graduates appears to be picking up, significant labor market slack remains,” write authors Jaison R. Abel and Richard Dietz. “So continued strong growth in the demand for college graduates may well be necessary to make a more serious dent in the underemployment rate.”
A separate study released last month by the National Association of Colleges and Employers found that employers expect to hire nearly 10 percent more new college graduates this year than last year.
The ease with which students can find jobs will depend not only on their major (those with degrees in engineering, business and computer science are the most in demand), but also on their location. A recent report by WalletHub ranking the nation’s largest cities from best to worst places to start a career found showed that cities in Texas and California have the most opportunities.
Small Business Owners Say They’re Raising Worker Pay
A record percentage of small business owners say they are raising pay for their workers, according to the latest monthly jobs report from the National Federation of Independent Business, based on a survey of 10,000 of the group’s members. A seasonally adjusted net 35 percent of small businesses say they are increasing compensation. “They are increasing compensation at record levels and are continuing to hire,” NFIB President and CEO Juanita Duggan said in a statement accompanying the report. “Post tax reform, concerns about taxes and regulations are taking a backseat to their worries over filling open positions and finding qualified candidates.”
The US Is Running Short on More Than 200 Drugs
The U.S. is officially running short on 202 drugs, including some medical staples like epinephrine, morphine and saline solution. “The medications most vulnerable to running short have a few things in common: They are generic, high-volume, and low-margin for their makers—not the cutting-edge specialty drugs that pad pharmaceutical companies’ bottom lines,” Fortune’s Erika Fry reports. “Companies have little incentive to make the workhorse drugs we use most.” And much of the problem — “The situation is an emergency waiting to be a disaster,” one pharmacist says — can be tied to one company: Pfizer. Read the full story here.
Chart of the Day: Could You Handle a Sudden $400 Expense?
More Americans say they are living comfortably or at least “doing okay” financially, according to the Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2017. At the same time, four in 10 adults say that, if faced with an unexpected expense of $400, they would not be able to cover it or would cover it by selling something or borrowing money. That represents an improvement from 2013, when half of all adults said they would have trouble handling such an expense, but suggests that many Americans are still close to the edge when it comes to their personal finances.
Kevin Brady Introduces Welfare Reform Bill
The Tax Policy Center’s Daily Deduction reports that Rep. Kevin Brady (R-TX), chair of the House Ways and Means Committee on Friday introduced The Jobs and Opportunity with Benefits and Services (JOBS) for Success Act (H.R. 5861). “The bill would rename the Temporary Assistance for Needy Families (TANF) program and target benefits to the lowest-income households. Although the House GOP leadership promised to include an expansion of the Earned Income Tax Credit as part of an upcoming welfare reform bill, this measure does not appear to include any EITC provisions.” The committee will mark up the bill on Wednesday.