Graduating during a recession: A literature review of the effects of recessions for college graduates
Javier Rodríguez S., Jared Colston, Zhixuan Wu, and Zi Chen
Center for Research on College-Workforce Transitions (CCWT)
University of Wisconsin Madison
Literature Review #4
The COVID-19 pandemic has caused a halt of the economy worldwide. The U.S. job market experienced an unprecedented downturn due to the pandemic-caused recession beginning in March 2020. As a consequence, thousands of jobs across industries now face wage cuts. The unemployment rate rose above 20% in April with a temporary layoff share close to 80% (Bartik, 2020; Cajner et al., 2020). The future of hundreds of thousands of college graduates transitioning from college to the labor market has thus become a matter of great concern for students, career advisors, higher education officials, and policy makers.
Research on the work trajectories of those who graduate during economic recessions can provide insights into how college graduates’ lives are affected by finishing school and starting their working lives in the middle of a weak economy. Additionally, available evidence about what has taken place in previous recessions can inform potential strategies for students, administrators, and policy makers to cope with the economic uncertainty and career search obstacles caused by the pandemic.
In this literature review, we present a summary of the main findings from this body of research, aiming to contribute to the conversation about what students can expect and do as they start their professional lives in these difficult times.
A document summary is also available: Highlights of the literature review on the effects of graduating during a recession for college graduates: main findings and practical implications