Graduates job-hunting during recession must remain hopeful, according to Baker Institute expert

The consequences of graduating during a recession are large, negative and persistent, but graduates should not lose hope, according to an expert at Rice University’s Baker Institute for Public Policy.

Joyce Beebe, a fellow in public finance at the Baker Institute, addressed the topic in a new Baker Institute blog post on the impact of the Coronavirus Aid, Relief and Economic Security (CARES) Act on graduates attempting to enter the workforce. “For recent graduates, this is not the best time to be the newest hire or the least-experienced person at work,” she wrote. “These young adults’ short tenure usually makes them vulnerable to widespread headcount reductions.”

Credit: 123RF.com/Rice University

According to Beebe, such reductions push graduates into initial job placements in less-attractive, lower-paying positions — on average, it takes students who graduate into a recession 10 years to “catch up” with those who graduated in a better market.

The CARES Act, the federal government’s third legislative COVID-19 economic relief package, includes recovery rebates, student loan payment relief and unemployment compensation as well as provisions that incentivize employers keeping workers on payroll. The act also expands employer-provided education assistance to include student loan repayments and expands the eligibility of unemployment benefits to independent contractors such as gig economy workers and freelancers, according to Beebe.

“The moral of the story is that new graduates should not lose hope — there is no winner in the current pandemic,” Beebe wrote. “However, as long as one continues to strive for one’s best, the cream always rises to the top — hopefully faster this time.”