Young adults 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.
In a Sunday evening report, the Wall Street Journal said the data points to unusually favorable hiring conditions for workers ages 22 to 34 who do not hold a four-year college diploma or another higher education credential.
The unemployment rate for this group is hovering around levels rarely seen since 2003, the analysis found, creating a sharp contrast with the job prospects of similarly aged workers who did attend college:
At the moment, workers without degrees are enjoying one of their best stretches in the job market, while many college-educated young adults are facing one of the toughest. The pressure appears even more pronounced for people with advanced degrees or backgrounds in areas such as science and technology.
That split marks a notable shift from the labor-market patterns that have defined the U.S. economy for years. A major factor is simple supply and demand: employers need more skilled trades workers, especially as older employees retire and immigration levels decline.
At the same time, the country has more degree-holding workers than ever before, while artificial intelligence is increasingly taking over some of the entry-level tasks that companies once assigned to newly hired graduates.
The analysis followed a surprisingly strong U.S. jobs report released Friday. Employers added 162,000 positions in August, while the unemployment rate stayed at 4.1 percent, unchanged from July. The results far exceeded economists’ expectations, which had called for just 55,000 new jobs and a rise in unemployment to 4.2 percent.
As 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.
