For those keeping on top of the latest news, signs and proclamations of economic recovery abound. It is important to keep in mind however that the ‘economy’ is a tremendously complex network of labor, capital, distribution, transportation, entertainment and on and on. In short, while parts of the economy may be improving, the sections of the economy that pertains to students are not showing signs of recovery. When it comes to the student economy it appears the pinching has only just begun. From huge hikes in university tuition rates to reductions in admissions the hurdles for acceptance to university just got higher. In addition, high unemployment among recent university grads demonstrates that success in college may not carry over into the workforce.
Welcome to the new student economy.
Of course university tuition has been rising for years, but no year can compete with this year as universities across the country unveiled 15 to 30% hikes in tuition and ancillaries fees. (Source). In addition, universities are also slashing enrollments (Source) in order to reduce expenditures on materials and data processing. For students graduating from university the job market is quite bleak, currently post graduate unemployment is much higher than general unemployment (Source) something for students to seriously to consider when deciding which schools and degree programs to apply for.
Today’s students had little to nothing to do with the recent financial crises, but the effects of this economic downturn touch students in very important ways. Recognizing that higher tuition rates and smaller admissions sizes are the way of the future can help students better prepare their applications. Understanding that a tough labor market lies ahead after graduation should prompt students to see the benefits of co-opt programs and internships. In short, understanding the new student economy will help todays students better prepare for the road ahead.