Does education decrease unemployment?

By Economics Editor

According to the Department of Numbers, it appears that education does indeed pay in job stability. As the data illustrates in Table 1, those with less than a high school education had an unemployment rate of 7.1 percent for the month of May. In contrast, those with a bachelor’s degree or higher had an unemployment rate of 2.4 percent for the month of May.

Here’s the data for May 2016

Table 1 – Education and Unemployment Rate
Education Level May 2016
Bachelor’s Degree or Higher             2.4
Some College or Associate Degree             3.9
High School Grad/No College             5.1
Less than High School             7.1
Source: Department of Numbers

 
As the data clearly suggests, the greater the education a person obtains, the greater the job stability that person will have in the work force. And as this news site reported in a previous article titled Top 10 Paying Bachelor’s Degrees, there is a relationship between the type of degree, the skills demanded, and the amount a person will make in a year. This extra focus further adds to the job stability of a worker out in the market place.

These facts together could explain why those with a bachelor’s degrees have experienced such low unemployment rates, in general, going back to before 1996. Graph 1 makes this point crystal clear as it shows the strong employment of those workers with bachelor degrees.

 

Department of Numbers Education and Unemployment
Graph 1 – Some HS (blue), HS Grad (green), Some College (yellow), Bachelor’s or Higher (red) – DoN

**Remember, there is nothing more American than discourse. You are always welcome to post your comments, thoughts, and questions below. 

Copyright ©2016 – The Systems Scientist

 

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