Salaries have been flat for just about every one who isn’t the CEO or a major corporation–but it’s particularly bad for recent college graduates, according to a new study. [photo: Dan Kitwood/Getty Images]
The Federal Reserve Bank of San Francisco conducted a study of wages across the board and found an alarming trend among college graduates. Or, rather, the lack of a trend. It appears that wages have not budged for those who just got their college degree since the great recession of 2007. It’s so stagnant that it isn’t even close to the meager wage increases for the total workforce overall. The average medium wage for workers who finished school within a year when they started working between May 2006 and April 2007 was $653 a week. These days, it’s $692.
The amazing part is that the Federal Reserve Bank isn’t exactly sure why the medium wage has stayed so stagnant–even in the midst of lower unemployment and higher economic certainty. It’s possible that a lack of higher paying jobs has forced graduates to take lower paying jobs just to have some regular income while they wait for something better to come along. The other explanation is that companies and corporations have more freedom to set the wages they want to pay their new employees because job growth is slightly slower compared to the 2007 recession and workers have less freedom to challenge the wages offered them or find other employment options.
Man, it’s a good thing that student loan rates aren’t going through the roof, or even forcing college graduates to rely on their parents more and more to pay the bills. Oh wait, never mind.