Wages Fall For Young Workers
Although the National Association of Colleges and Employers reported that college grads were receiving higher starting salaries for the first time since 2008, a Forbes report finds these numbers may not be true. The average of $50,034 a year that NACE finds is slowly slipping away and each month, the millennial generation of college graduates is seeing smaller and smaller pay checks.
Forbes reports that researchers with the Economic Policy Institute discovered the average hourly wage for male college grads from 23-29 is down more than 11 percent from 10 years ago to $21.68 in 2011. Although female college grads are seeing a lower drop, with gender wage differences, they’re still losing out big time. Young women are seeing a 7.6 percent decrease from 10 years ago to $18.80.
The report noted the situation of one 28-year-old advertising assistant who still lived with his parents due to his stalled salary. He had starting working in 2007 at $35 and his pay raise only recently jumped past $40,000. A Wall Street Journal report noted that one 2010 college graduate was obligated to take a position for less than $30,000.
It paints a difficult reality for many young workers struggling to work and pay back student loans. Lower salaries leave them with less income to pay down their debts and actively participate in consumer spending.
Despite the lower salaries, many of these millennials are simply relieved to have found work. Pew research observes that 37 percent of 18-29 year olds are still out of work.
There is some good news to the numbers, the report states that the average age-adjusted hourly wage for production and non supervisor positions has risen 3 percent across age and education levels.