Graduating in a Recession
The U.S. unemployment rate increased from 3.5% to 14.8% between February and April 2020, the highest rate, and the largest monthly increase in the history of the data. Though reopenings and stimulus packages have helped the labor market recover, the experience of previous recessions raises concerns that the downturn could have a long-lasting impact, especially on those who graduated college during this crisis.
In this episode of EconoFact Explains, we look at labor market scarring -- the persistent effect of past conditions on workers' current outcomes -- drawing on studies that chart the lifetime employment and wages of those graduating during previous recessions.
The Lasting Scars From Graduating in a Recession
The Long Shadow of Labor Market Scarring