Kimberly Hronek Camillo’s Post

A couple of years back, during my interviews with leading economists, I delved into the question of whether they see any issues with job automation and unemployment when societies are able to figure out effective redistribution and access to basic resources for all. Most economists didn’t see any issues with that. “If I get a basic income, I’ll just do something I like, one of my nice hobbies, and I’ll have a great time.” However, I find it difficult to accept this optimistic outlook, even under the assumption of perfect redistribution. When I researched the topic for my master’s dissertation, I found the issue more complicated. My research indicated that becoming unemployed is commonly associated with a notable decline in overall well-being. Based on six studies that estimate the effect of unemployment on people’s happiness using the life satisfaction measure, unemployment could cause a loss of 0.30 to 1.55 life satisfaction points (on a scale of 10). This estimate is likely an underestimate because the fear of job automation could already cause some loss of life satisfaction even before unemployment occurs due to anticipation of job loss, which has been shown in several studies. Unemployment could also have some scarring effect and could result in a loss of up to 2.10 life satisfaction points a year when considering all the effects. Of course, a lot of this loss of wellbeing comes from income loss, but I found that even when income is controlled for there is some life satisfaction loss. It’s not just income that matters, unemployment can damage individuals’ perception of self-worth and more. Anecdotally, it makes a lot of sense. For example, one of my family members, who worked in a mundane manual position and told me that the only reason they work is the income they receive from it, recently became unemployed. They were guaranteed to receive one year’s worth of salary when they were laid off. When I spoke with them, they told me that they now wake up late, have no structure in their lives and don’t know well how to spend their time, and don’t speak with colleagues anymore because there’s no reason to call. Despite having a job that is not intrinsically rewarding, they still lost some benefits from it such as structure, social network, and some purpose. Of course, they could rebuild these aspects elsewhere, but this necessitates effort and support, and not everyone is able to do that by themselves. Here’s my master’s dissertation if anybody is interested in the topic:

My first job out of college paid a whopping $17,500 a year. This was in ‘99, but that was still a pretty sorry salary for even a cub newspaper reporter. But I was pleased as punch. - I got to graduate in May like a normal college student and go straight to work. No gaps. - I got to gain daily newspaper experience. - I got to move out of my little hometown to a completely different state. I didn’t care about my salary. I didn’t care that I had no insurance. I didn’t care that I had no retirement plan. I cared only about those three things above. My focus was on learning and growing and bettering myself so that I could do the things I do today. I mean, I didn’t know specifically that’s what I was doing. 👀 But look. Here I am today, doing the things I do. So, I guess my plan worked. 🤷🏻♀️😉 My point is, if you’re starting out and “working for less,” you are gaining priceless experience. Don’t sweat a small paycheck. Eat more ramen. (I’m realizing now where my minimalism developed.) If we all started out expecting big pay - and just gave up when we didn’t get it, none of us old folks would be here. Keep on keepin’ on. You’ll get there.✌️ #jugglingfire #contentcreation #copywritingservices

Just graduated and entering the job market?🎓 Congratulations! But don't forget to plan your financial future! Check out our latest article for advice from financial advisors on how to navigate the real world. #FinancialPlanning #ProfessionalDevelopment #AnnArborMichigan

A bachelor’s degree continues to be a great #investment, Kevin Carey writes. Why do the media keep suggesting otherwise? https://lnkd.in/e6Hu4rrK “For half a century, many news outlets "have been feeding the anxieties of their well-educated readership by publishing stories about a crisis among recent college graduates,” Carey notes. “The precise details may evolve, but the formula is remarkably durable: Find some recent grads working humble jobs, quote them on how their lives are failing to live up to their aspirations, and cite an expert warning that this could be the new normal.” One recent story, “New #College Grads Are More Likely to Be Unemployed in Today’s Job Market,” typifies the trend, featuring a recent college #graduate who moved back home after failing to find a job. Although the unemployment rate for new college graduates has historically been lower than the overall average, it has been higher in recent months. “That sounds bad, particularly given how much money students borrow for college,” Carey writes. “But a closer inspection of the numbers reveals that the so-called sharp reversal isn’t sharp, and is barely a reversal. The new-graduate and all-worker unemployment rates have been moving pretty much in lockstep, within a percentage point of each other, for the past 10 years.” “There's a huge difference between short-term and long-term prospects for college graduates. In that difference lies the true value of a college degree,” Carey continues. “In the long run, college graduates are most likely to marry other college graduates, forming financially stable households that are more able to buy homes. They cluster together in financially vibrant metropolitan areas, giving them the most access to new partners, capital, and jobs. College degrees are still very valuable, which is why colleges have been able to relentlessly bid up their price.” Read more: https://lnkd.in/e6Hu4rrK 🎨: Matteo Giuseppe Pani. Source: Getty.

My latest post in Forbes looks at two recent reports that highlight a couple aspects of the same problem: degree inflation, or the slow creep of college degree requirements into jobs that have historically not required a degree. The first report, from The Burning Glass Institute and Strada Education Foundation, finds that 52% of recent college graduates are "underemployed" - that is, working in a job where a four-year degree is not necessary. Ten years after graduating, most initially underemployed college graduates remain in noncollege jobs. They pay a penalty for it: underemployed graduates earn $20,000 less than graduates in college-level jobs. The second report, also from Burning Glass and Harvard Business School, takes a closer look at the dawn of "skills-based hiring" - the pledges from many companies and state governments to drop bachelor's degree requirements from job descriptions. The researchers find that most employers haven't followed through on these pledges. After a company drops a degree requirement, hiring of people without degrees increases just 3.5 percentage points. That's not nothing, but it's far short of the progress we need to make. The reports paint a troubling picture. The average American worker must spend more time and money pursuing degrees to qualify for jobs that have not historically required them, and which often don't pay enough to compensate workers for the expense of college. Read my column for more details: https://lnkd.in/e4SGpnft

College pays off -- but the labor market is still difficult for many graduates. Many will be in jobs that don't require a degree after graduation. 🎓 BGI President Matt Sigelman recently spoke with The New York Times columnist Peter Coy to discuss the future prospects for the Class of 2024. 👩🎓 “I do believe that America benefits from having a highly educated workforce." Sigelman said, “Demand for talent is not fixed. The center of gravity of our economy is increasingly in the knowledge economy. Jobs follow talent.” While it's clear that in the short term, there may be more college graduates than available jobs, as highlighted in recent findings from The Burning Glass Institute and the Strada Education Foundation's Institute for the Future of Work's report, (view report: https://lnkd.in/e_FR3ddj ) the long-term advantages of a well-educated workforce are indisputable. In his 2023 report titled "Making the Bachelor’s Degree More Valuable," co-authored with Jeff Selingo (view report: https://lnkd.in/gmT-54eA), Matt Sigelman discusses how the value of a college degree still remains high. Despite short-term fluctuations, the bachelor’s degree consistently commands a significant wage premium—averaging 25 percent within a year of graduation, a trend that persisted over a 12-year study period. A special thanks to Stephen Moret, Heather McKay, Andrew Hanson, Carlo Salerno, Mels de Zeeuw, and Gad Levanon for their valuable contributions to advancing research on these crucial topics concerning the future of work. Read the full article here: https://lnkd.in/dMFVR9gp #colleges #economy #highereducation #jobs

Did you know that 80 % of students believe institutions should prepare them for a job they love? And do you know what graduating seniors want from their first post-college job? Here are some key 🔑 take-aways from recent Handshake data: ⚖ Job stability is a must - 76% 🗺 Location matters - 75% 🌟 Employer Reputation is key - 72% 💵 Money matters - 71% Great insights from Ashley Mowreader in this recent Inside Higher Ed article!

Little scientific note to add: Chose your metrics wisely... self-reported satisfaction, and self-reported confidence to find a job (of someone who JUST graduated and hasn't been through the hiring process yet) are NOT THE RIGHT METRICS to look at if you want to know whether college is worth it. Education is incredibly valuable (I was in school for 20 years I gotta like it) but in a place like the US where education is NOT free and puts people into massive shackles of debt, you have to be very careful weighing your options. I want to see the stats from people in their 30's who were asked the same questions we see below to get a better bird's eye view of "was it worth it".

Let's talk real talk—If you're not swimming in money, choosing the RIGHT major is crucial! The difference between a $35,000 and a $110,000 annual salary could hinge on your major choice. As a first-gen grad who knows the struggle, I'm telling you—money isn't everything, but it sure does help. Before you commit, do your homework: Head to @linkedin, check out your school’s alumni by graduating year, and filter by degree. See where they work and what they earn. This isn’t just about chasing dollars—it's about making informed decisions that align your passion with financial stability. Whether it’s Communications, Engineering, or anything in between, knowing the potential ROI on your education can steer you towards a future where you’re not just surviving, but thriving!

Every Sunday, it's a ritual in my house - to teach my daughter the value of money. How? We sit down and calculate the earnings. But how does she earn? Every week we create a chart for her were she accumulates stars – each one star represents a completed task. Now, before she goes through bed she has to complete all of those tasks. It's a simple system: reach 120 stars by the end of the week, and she earns a cool 100 bucks as pocket money. But here's the thing that got me thinking: When our kids are in the development stage, they have full potential to learn anything A-Z. So, that's about my daughter. But lately, at work, I've been seeing a trend with young applicants: I have felt a disconnect with them - they don't value the money, the offer they are presented with. Is salary the only thing that one earns in a job? What about learnings, expertise, soft skills that you develop. So, here's my question to all you fellow job seekers: ✨ Do you think money is everything that matters to you in a job? ✨ Don't you care about the learnings at the workplace? ✨ Don't you want to adapt to people skills? What do you think about this approach, tell me your thoughts in the comments. #valueofmoney #storytelling #money