Young workers without college degrees are benefiting from one of the strongest labor markets they have seen in decades, with unemployment near historic lows, according to a Burning Glass Institute analysis cited by the Wall Street Journal.
The Wall Street Journal reported Sunday evening that the data points to a particularly resilient job market for 22- to 34-year-olds who do not hold a diploma from a college or university.
The unemployment rate for that group is now approaching some of the lowest levels recorded since 2003, a sharp contrast with the experience of similarly aged workers who earned college degrees, the analysis found:
At the same time that workers without degrees are enjoying unusually strong prospects, college graduates are facing one of their tougher job markets. The strain appears even greater for people with advanced degrees or credentials in areas such as science and technology.
The split marks a notable shift from long-running patterns in the U.S. economy. Much of the change reflects basic supply and demand: employers need more skilled trades workers, while retirements among older workers and reduced immigration have tightened the available labor pool.
Meanwhile, more Americans have college degrees than ever, just as artificial intelligence is doing more of the entry-level work companies typically hire young graduates for.
The report comes days after an extremely strong jobs report on Friday, with the United States adding 162,000 jobs in August with unemployment holding at 4.1 percent, the same rate as in July. The report blew past economists’ forecast of just 55,000 jobs and an uptick in unemployment to 4.2 percent.
MORE STORY: Mexico Trial Opens in Killing of Australian Surfers, US Friend
As – News Economics and Finance Editor John Carney reported:
The private sector added 127,000 jobs in August, far more than the 53,000 expected. The prior month’s gain of 30,000 was revised up to 71,000.
Manufacturing payrolls rose by 16,000, above the 5,000 estimated. The July estimate was revised up from a gain of 5,000 to a gain of 14,000. Durable goods added 15,000 jobs in August after adding 24,000 in July and 13,000 in June.
Construction added 22,000 following an 18,000 gain in July. Construction has been increasingly in demand thanks to a data center building spree.
Leisure and hospitality unexpectedly added 62,000 jobs after contracting in July and June. Retail services added a slight 1,400 and wholesale added 7,800. Transportation and warehousing added 5,000 and utilities 2,500.
The jobs numbers come after revisions to both the June and July numbers, which together accounted for an additional 55,000 jobs.