The Calculus of Living

What do they live on, and where?
   
   It's been well documented that people with more education get better jobs at higher pay than those with less than a high school diploma. But consider some numbers:

   More than 3 million people graduate from high school in the United States yearly, according to U.S. Census surveys, and two-thirds of them go on to college. Another 3 million finish college -- half with bachelor's degrees, and the rest with doctorates, master's or associate degrees.
   Not to toss around too many numbers too quickly, but clearly that means at least 3 million well educated people joining the American workforce every year -- probably more.
   Meanwhile, less than half the people in the workforce age 19 to 29 are working full time, although the official unemployment rate for those with bachelor's degrees is 3.8 percent. This, however, counts all those degree holders age 25 and older. The unemployment rate for those age 16 to 19 is 23.7 percent, the Labor Department said.

   Now consider this: The average hourly wage nationwide is about $24, which means weekly pay of about $900. And a useful financial guideline is that monthly housing costs should be approximately that of a weekly income.
   Now try renting an apartment for $900 a month, assuming you make that much. In other words, one week's pay equals one month's rent.

   Real estate agents typically handle rental units in the mid- to high-end range, and an inventory of available apartment rentals would count only those units. A quick scan of housing ads indicates that a one-bedroom apartment would cost at least $800 monthly, depending on the neighborhood, with many others in housing developments going for a lot more, in some areas for as much as $2,000 monthly. Moreover, these apartments would be in suburban areas, within commuting distance of urban areas with higher-paying jobs.

   Here's another number: That average weekly pay of $900 means yearly income of $46,800. Sounds good, except that for many college graduates with teaching certification, their first job typically pays less than half that.

   Currently, with the austerity mongers demanding severe cutbacks in government spending, that means fewer teaching jobs available, and with recessionary forces still not defeated, companies are reluctant to hire. Result: America's roll of the unemployed totals 11.5 million people.
   So far, anger and bitterness among college and high school graduates unable to find work and gather the independence to leave their parents' roof has not sparked a serious problem in America. Many graduates, both high school and college, are opting to continue their studies and not enter the workforce, hoping that the recessionary storm will blow over while they hunker down in academia.

    Assuming, of course, that Mom and Pop still have jobs and can afford more school for the offspring.