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June 14, 2006

Education and unemployment

Education is keenly important in today’s economy, and it has an effect on unemployment rates. N.C. State University's Mike Walden explains.

"Let’s look at the most recent unemployment rate data that we have and look at how that rate changes by the level of education of the worker," says Dr. Walden, an economist with the North Carolina Cooperative Extension Service.

"Right now if you are a person who has no high school diploma, the class of folks that you are in has an unemployment rate of over 6 percent -– in fact, 6.6 percent.

"Now, if you are in a group of folks who has only a high school diploma –- you did graduate from high school but you’ve stopped there -- your unemployment rate right now is 4.4 percent – better, but clearly not where you want it.

"However, folks who have gone on and gotten some college education or they have an associate’s degree, the unemployment rate for those folks drops to 3.7 percent. And then if you are a person who has a bachelor’s degree from college or more, folks like you have an unemployment rate of 2.1 percent," Walden goes on.

"So you go from 6.6 for folks without a high school degree down to 2.1 for folks with college," he concludes. "That is a dramatic change."

Posted by deeshore at June 14, 2006 08:27 AM