The College Bubble Has Popped

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Friday, May 10, 2013 The College Bubble Has Popped With the cost of tuition exploding higher, student loan delinquency rates on the rise, and wages for college grads going nowhere, young people are increasingly asking themselves if higher education is really worth it. While it's true that the unemployment rate is lower for the those with college degrees, data shows that labor market conditions are rapidly deteriorating for this demographic. Yesterday, we reported on a new eye-opening report from Goldman Sachs' Jan Hatzius who noted that the labor force participation rate for college-grads was tumbling.  This has been giving the appearence that the unemployment rate has been relatively stable. Hatzius took the employment rate as a percentage of the population for college grads and then for those with less than a high school diploma.  This provided a picture of the employment rate without having to address the changes in labor force participation rate. "The statement that college graduates are the only group to have seen employment gains also requires qualification," said Hatzius. "It is technically correct, but nevertheless misleading. As shown in Exhibit 3, the employment/population ratio has fallen just as sharply among college graduates as among high school dropouts since 2007; in other words, the growth in the absolute number of employed college graduates has been nowhere near enough to offset the increase in the size of the college-educated population." While Hatzius is mainly concerned with trends since 2007, the chart he provided goes farther back. As you can see since the early 1990's, the employment rate for college graduates has been tumbling while the employment rate for those with less than a high school diploma has trended higher. "The college bubble has popped," tweeted CNBC's John Carney in response to Hatzius' report. Read » Also On Money Game Today: MICHELLE MEYER: The Housing Market Isn't Developing Into A Bubble STOCKS INCH HIGHER: Here's What You Need To Know Advertisement CHART OF THE DAY: The Short Sellers Are Getting Destroyed CHART OF THE DAY: It Doesn't Take A Genius To See Something Fishy In China's Trade Data CHART OF THE DAY: Citi's Levkovich Sees Stocks Going A Lot Higher This Summer Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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