It’s an exciting time to be a college graduate.
The tight labor market is translating into one of the best hiring seasons for college grads in recent years. A new survey from the National Association of Colleges and Employers shows that the rate of hiring of college graduates in 2019 is up 11% from last year.
The class of 2019 will also enjoy higher salary prospects than in 2018 -- another indication of a good hiring market. It’s been nearly a decade since the end of the Great Recession, and unemployment in the U.S. has reached historic lows, giving workers the upper hand in the job hunt.
After several years of economic growth, wages are finally starting to rise. That's true for workers who switch jobs and those that stay in jobs, though the former set has typically seen larger salary increases.
In 2018, wages increased nearly $1 per hour across all industries, according to research, which analyzed payroll data from nearly one in six U.S. workers. Job switchers saw an average wage increase of 5.8%, or $1.90, while job stayers saw a 4.7% increase, or $1.34.
All this data paints a picture of a ripe job market with employers who are hiring and willing to pay well for qualified workers.
That’s good news for graduates with large college loans to pay off. 2018 Student Loan Debt Statistics show that 44.5 million student loan borrowers in the U.S. owe a total of $1.5 trillion. The average college graduate with a bachelor's degree left school with $28,446 in student debt in 2016.
Looking forward, once these grads have secured jobs and start new careers, in the era of the “shared economy,” college graduates will most likely fine-tune their spending to become the most capital-efficient generation of all time. And their income model may well change as well, with rising wages and the popularity of profit sharing in the workplace.
As Millennials age, their wealth will grow, and they will naturally become investors as well. And beyond the sheer amount of wealth they will be controlling, they will be markedly different in their investing activities than the generations before them.
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