College Graduates To Enter The Worst Job Market Maybe Ever

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Chris addresses the alarming job market for recent college graduates, citing Bureau of Labor Statistics data showing a 15.3% unemployment rate for four-year degree holders and 8.4% for advanced degree recipients, compared to just 2.1% for associate degree or vocational school graduates in their 20s. He attributes this to AI replacing jobs, declining college enrollment, and rising tuition costs, with student loan debt doubling to $1.7 trillion since Obama’s nationalization. Markowski criticizes universities’ focus on subsidies over outcomes, suggesting taxing their endowments or athletic revenues to reduce student loan balances, and warns of widespread hiring freezes fueling graduate frustration. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst and trader Chris Markowski.

Speaker 2 (00:16):
Jobless with a degree, These numbers are frightened, quite frankly,
for the first time in over forty years, recent college
graduates are doing worse and the job market than the

(00:39):
general population. Not the same worse. Yeah, AI is playing
a part of this. It is replacing many jobs, many jobs.
Seen this coming. I said, you know where it used
to take you know, five to six seven young college

(01:02):
grads to put together a prospectus a couple of weeks.
Maybe AI can do it lickety split and you have
one person check it over. When all is said and done.
College enrollment has been declining. More parents and students are
starting to question the value of degrees that can cost

(01:23):
obviously more than the house. Colleges keep raising tuition, they
keep adding expensive grad programs. You can get more federal subsidies,
never any concern about student outcome. This is from the
Bureau of Labor Statistics. The unemployment rate for recent associate

(01:50):
degree community college. The unemployment rate for kids with a
community college or vocational school degree people in their twenties
two point one percent. Two point one percent for associate

(02:14):
and vocational school graduates, that's the unemployment rate four year
college grads fifteen point three percent, advanced degree recipients eight
point four percent. You have a better chance of being
employed with a two year degree than a four year degree.

(02:41):
I saw this coming when Obama went all in and
had the government takeover student loans, one of the greatest
policy failures in history. We have a student loan balance
sheet right now that's one point seven trillion dollars. That's

(03:02):
double double what it was when Obama nationalized the industry.
Double as some of the student debt forgiveness that Biden
put into play, it would be over two trillion dollars. Yeah,

(03:26):
it's just to relie to these kids for a long time. Now. Granted,
there's a lot of BS degrees out there, and you've
got to be an intelligent borrow. And I understand the arguments.
You know, no one forced you to take out the loan,
especially ridiculous graduate degrees that go nowhere. But it doesn't

(03:47):
make the problem go away. Doesn't make the problem go away.
The conversation right now, and I haven't listened to it.
There was an interview with the president of Harvard. President
of Harvard, who I guess is explaining why he needs
government grants. I got to hear this. Much of their

(04:07):
endowment is in ill liquid investments. Again, that was their choice.
I guess they're having a difficult time unwinding these ill
liquid investments. How about how about this? Throwing this out there, Okay,
throwing this out there. You're going to eliminate the tax
exempt status on universities. Why not? Why not say all

(04:34):
of the I don't know all of the taxes that
are collected on these universities, and make no bones about it,
no bones about it. You're going to see schools go under.
You're you're going to see it. Were's already been seeing
schools have to, you know, close up shop, can't afford
anymore the taxes that they collect. Maybe use that to

(04:56):
pay down the student loan balance. Throw it out there,
throwing it out there again. I'm maybe use some of
the money again. They're obviously printing money. When it comes
to sports. They're able to pay student athletes millions of
dollars a year. Maybe have to take a percentage of

(05:18):
their athletic revenue basketball and football, and it has to
go towards paying down these students. I don't know what
to tell you, but these numbers are bad, bad, And
you think that these people are these kids that are graduating,

(05:39):
they can't find themselves a job. I'm telling you this
is everywhere. Okay, this is Wall Street. This I mean here,
there and everywhere. Okay, ain't hiring. They're not hiring. At
these point in time, these kids are going to be frustrated,

(06:01):
to say the least. It is going to be a
problem moving forward. And again I'm going to say it again, Okay,
you have a better chance of getting a job with
a community college vocational school degree than a four year
degree and or a graduate degree. Watchdog on Wall Street

(06:31):
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