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With 1 out of 2 new grads either unemployed and underemployed, what does this mean for the economy, this year's graduates and beyond?
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Now how -- should open doors but 2012 college grads may only get doors slammed in their faces.
-- just simply are not enough jobs the numbers are absolutely staggering right now more than half.
53%.
Of recent college graduate -- -- jobless or underemployed.
-- experts say it's a double whammy a record number of graduates are also buried in debt.
Fox -- Elizabeth MacDonald -- nice to see you -- tell me how that how.
How Grimm is this.
It is pretty grim they -- a -- -- with college grads.
Is at its highest in eleven years does he just pointed out and it's -- because these college grads are coming into our workforce where we're seeing a full unemployment rate.
Where somebody layoffs have been already been hitting the US economy.
Full on a -- is that 15% so -- these college grads are taking hub basically.
Jobs that will not be able to cover.
The costs there to wish him.
Which continues to -- -- getting jobs says cashiers are part tenders or retail clerks and this comes at a time when college tuition Greta.
It's up about five times since 1999.
When household incomes are basically staying stagnant.
Yeah so wonder what they -- at look at visa numbers for.
College tuitions and -- -- this unbelievable that cost of the -- some of them have a request a lot of the big university isn't the only university of beta like Stanford Yale Harvard they have endowments in the billions and analyzing -- like about 25 to thirty billion dollars me so that they're sitting on money while they charge is exorbitant.
Tuition rates.
Yeah that's right -- and you know you're right they endowments that decides the size of Wall Street hedge funds.
And you know they've tuition rates art and essentially gouging American families and what is -- tuition go to cover it goes to cover.
You know basically.
Donald Trump style real estate empires college administrators.
You know basically are running at their colleges on the level of hotel economics they've got they're paying for five star cafeteria -- Or Yale College laying like NFL style college football stadiums or even more what do you more bureaucrats that are needed.
The ratio of administrators to students is now around forty to one whereas when it comes to teachers to students -- just fifteen to one.
And so I think parents are reacting the parents are starting to get the picture there understanding that it's not worth it that -- there is a college tuition bubble.
And the value of the drink that degree just isn't worth it anymore it and when we talk about how.
To wish him is rising state schools -- in California.
Often do it in lockstep at one school raises tuition the rest of them that they would and one of them bills and NF still sought NFL -- college football stadium.
The other will do it and then the tuition goes up to cover those expenses.
Well I mean we're -- we're not terribly distressed at this eight point 2% national unemployment rate.
And then when you look at the number that of college BA holders under the age of 25 now lured jobless -- underemployed.
Number is 53 point 6%.
When you look at that that's the -- -- C -- workforce those are the ones are supposed to really rev up the economy get going expanded -- the great thinkers of the future and and and when there's -- -- sit on the sidelines.
And buried in debt.
Yeah that's right and so what's happening as as you point out you know they've done a -- -- -- eleven years ago was around 41%.
And right now this is an election year issue it's becoming an issue for the congress and for the White House.
And for Republicans for both sides of the -- because interest rates and -- loans are set to double.
This July if the government doesn't move to stop it but -- -- argument is you -- loan rates were so easy to come by.
That they would basically since piled into these cheap loans when they may be should.
-- -- And what really couldn't get jobs and it couldn't I don't -- Then I'd like take a -- and go to school and try to get -- -- and did try to get a job because of those at this -- they're no jobs and their latest sit around and had their parents' home open a branch of cash in their back their they have 401 -- early before the -- and the government -- taxes it would take some but think that they assuming.
-- here's economics here's what the colleges are thinking.
We're gonna raise tuition and then we'll get more aid to the student which justifies raising.
Tuition so there in this collective flight from reality and they've they've caught the American family in a vicious cycle of their own making.
So this has -- it has to be broken somehow.
Where the marketplace and I think is something you're seeing the canaries in the coal mine right now for the college tuition bubble.
Already Community Colleges are seeing -- enrollment.
Down we're seeing the for profit colleges and -- down by 45%.
At a spot checking missing college -- -- down in some places like Ohio Illinois Nevada some places -- California not just because of economic downturn.
Because they're deferring going to college because it's so expensive or you know -- just choosing not to -- I immediately Latin do you blame the 53% -- and all of our -- to -- but a huge unemployment -- I'm not sure makes a lot of sense to goes a lot money and college just to be.
Unemployed with a bigger debt than unemployed would no doubt yeah that's true -- and you know what it is so once.
-- that.
Colleges sit on these endowments and not do enough to lower tuition.
Yes I understand that people donate money and they want it basically by an eight on the donors want to buy a -- And some kind of academic line of -- teaching there instead of funneling that money tortured -- tuition.
But the colleges can do more I read one statistic that only 9%.
A college endowments go toward lowering tuition the rest goes towards all sorts of other expenses that -- -- help.
These students at these colleges and universities.
Liz thank -- sure.
