The Economic Perspective: “Will New Job Seekers Be Hurt by the Virus?”

Mary:  This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks if new job seekers will be hurt by the virus.  Mike, new college and high school graduates who are entering the job market are worried about two things.  First, will they be able to get a job in today’s coronavirus-caused recession?  And second, if they do obtain a job, will their pay be impacted?  What are your answers?

 

Mike:  Summary Answer

  • On first question, yes with jobless rates rising
  • If can hold off, wait – jobs should increase beginning later in the summer
  • On second question, research shows that people who begin their first job during or shortly after a recession lose lifetime income
  • Start job at lower salary, so consequently future salary increases are calculated on a lower starting base
  • Rarely do they catch up compared to if they began job during good economic times
  • I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.