EDUCATION

1 in 2 new college graduates are jobless or underemployed

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Bledsoe, currently making just above minimum wage, says he got financial help from his parents to help pay off student loans. He is now mulling whether to go to graduate school, seeing few other options to advance his career.

"There is not much out there, it seems," he said.

His situation highlights a widening but little-discussed labor problem.

Perhaps more than ever, the choices that young adults make earlier in life - level of schooling, academic field and training, where to attend college, how to pay for it - are having long-lasting financial impact.

"You can make more money on average if you go to college, but it's not true for everybody," says Harvard economist Richard Freeman, noting the growing risk of a debt bubble with total U.S. student loan debt surpassing $1 trillion. "If you're not sure what you're going to be doing, it probably bodes well to take some job, if you can get one, and get a sense first of what you want from college."

Andrew Sum, director of the Center for Labor Market Studies at Northeastern University who analyzed the numbers, said many people with a bachelor's degree face a double whammy of rising tuition and poor job outcomes.

"Simply put, we're failing kids coming out of college," he said. "We're going to need a lot better job growth and connections to the labor market, otherwise college debt will grow."

By region, the Mountain West was most likely to have young college graduates jobless or underemployed - roughly 3 in 5. It was followed by the more rural southeastern U.S., including Alabama, Kentucky, Mississippi and Tennessee.

The Pacific region, including Alaska, California, Hawaii, Oregon and Washington, also was high on the list. On the other end of the scale, the southern U.S., anchored by Texas, was most likely to have young college graduates in higher-skill jobs.

The figures are based on an analysis of 2011 Current Population Survey data by Northeastern University researchers and supplemented with material from Paul Harrington, an economist at Drexel University, and the Economic Policy Institute, a Washington think tank.

They rely on Labor Department assessments of the level of education required to do the job in 900-plus U.S. occupations, which were used to calculate the shares of young adults with bachelor's degrees who were "underemployed."

About 1.5 million, or 53.6 percent, of bachelor's degree-holders under the age of 25 last year were jobless or underemployed, the highest share in at least 11 years.

In 2000, the share was at a low of 41 percent, before the dot-com bust erased job gains for college graduates in the telecommunications and IT fields.

Out of the 1.5 million who languished in the job market, about half were underemployed, an increase from the previous year. Broken down by occupation, young college graduates were heavily represented in jobs that require a high school diploma or less.

In the last year, they were more likely to be employed as waiters, waitresses, bartenders and food-service helpers than as engineers, physicists and biologists combined (100,000 versus 90,000).

There were more working in office-related jobs such as receptionist or payroll clerk than in all computer professional jobs (163,000 versus 100,000).

More also were employed as cashiers, retail clerks and customer representatives than engineers (125,000 versus 75,000).

According to government projections released last month, only four of the 30 occupations with the largest projected number of job openings by 2020 will require a bachelor's degree or higher to fill the position - teachers, college professors, nursing aides and accountants.

Most job openings are in professions such as retail sales, fast food and truck driving, jobs which aren't easily replaced by computers.

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