Tags: white collar | workers | college degree | employment

Yahoo Finance: College-Degree Worker Shortages Are Percolating At Last

By    |   Sunday, 08 February 2015 11:53 AM

Demand for white-collar workers with a college degree in the U.S. has left the runway and is gaining altitude quickly, according to some experts.

That assessment comes as government figures showed the economy added 257,000 jobs in January, in categories ranging from retail and restaurants to healthcare and manufacturing.

Guy LeBas, an analyst at Janney Capital Markets, predicted in a research note a shortage of those with some highly sought college degrees could be materializing.

“These educated workers are the most productive in our information economy, and at some point in the coming year, we’re going to risk running out of new, productive people to employ,” LeBas said. “That comment would have been unthinkable just 12 or 18 months ago.”

Yahoo Finance columnist Rick Newman noted that not every college degree is created equal.

“Grads who majored in one of the STEM fields — science, technology, engineering or math — might get multiple job offers, while other college grads work at low-paying jobs that don’t even require a degree, because it’s all they can find," he said.

“And some older college grads have drifted backward in their careers after losing one job and taking another that pays less. With obligations such as kids or a mortgage, any old job doesn’t necessarily cut it.”

Consulting firm McKinsey is forecasting a shortfall of 1.5 million college-educated workers in the U.S. by 2020.

“In some fields, such as technology, finance and accounting, the shortage could be more acute (and the pay eye-popping),” Newman said.

A better outlook for young college grads might be coming in the nick of time.

According to the New York Federal Reserve, almost 50 percent of all 25-year-olds live with their parents – up from 30 percent just 15 years ago.

“The main reason, in addition to a lousy job market, is a student-debt burden now close to $30,000 per borrower,” Newman wrote.

Reuters reported that over the past three months, more than one million jobs have been added to U.S. payrolls, the fastest such pace since late 1997.

The jobless rate still rose one-tenth of a percentage point to 5.7 percent as more Americans jumped into the labor force to look for work.

Reuters reported some experts are predicting the Federal Reserve now has a clearer path to a mid-year hike in interest rates.

"Employment growth is clearly on fire and it's beginning to put upward pressure on wage growth," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.

"The Fed can't wait much longer in that environment."

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Demand for white-collar workers with a college degree in the U.S. has left the runway and is gaining altitude quickly, according to some experts.
white collar, workers, college degree, employment
Sunday, 08 February 2015 11:53 AM
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