As the end of this semester approaches many students will find themselves in the same predicament as last year—without work or few job choices. Students are still trying to seek internships and some are still awaiting companies or organizations for job shadowing. However, those internships or job shadow opportunities seem to be few and far between. Many colleges have had to forego requirements for shadowing and internships because of the current job market—and it seems to be a continual problem.
Unemployment in our area is currently at 7.7 percent. Statewide unemployment is 9.7 percent. These are high figures and reflect those currently receiving unemployment benefits. What the figures do not mention are those that are still unemployed that have exhausted their benefits. This can only indicate that unemployment figures could be in the double-digits. As these figures remain the same so does the outlook for jobs, internships and observations.
Michael Walden, a professor in agriculture economics, mentioned in a recent media interview that he feels the economy in our area is improving. He said back in May 2010 that the economy would improve in three to four years but be a long and hard road.
I agree with Walden that the road to recovery will be difficult. I disagree that our economy is improving. We have been experiencing a downturn since 2008. Federal Reserve Chairman Ben Bernanke recently said, “unemployment is likely to remain high for some time.” While we may be digging our way out of a recession, the number of job cuts blended with government shortfalls only spells a recipe for disaster. Lack of confidence from consumers and businesses will maintain this flat economy. 6.2 million people have been looking for a job over the past two years. The U.S. hopes to create at least two million jobs this year. Last week the state Employment Security Commission reported that unemployment increased. This does not sound like the recipe for an improved economy.
Unemployment has been a thorn in the side of many students that have huge amounts of student loan debt. A lack of jobs with which to pay back those loans only creates further debt that digs a deeper hole where it becomes difficult to escape poverty by raising interest rates. Many in our area are still unemployed yet not receiving unemployment benefits, because they have exhausted their remaining benefits. These are called discouraged workers. Actually they are unemployed workers with little options for job choices.
Unemployment will remain high not because of discouraged workers. It will remain high because companies are learning that they can do without certain job skills, outsourcing is cheaper and companies are trying to reduce their bottom line. N.C. State has learned from past economic crises that they too can do without certain programs. The fact is many of those programs never returned to our University. The University recently published guidelines to further reduce degree programs and staffing needs. Those programs may meet the same fate as they did with past University cuts by never returning.
Jobs do not seem to be on the horizon for North Carolina. North Carolina ranks 41st in the nation in unemployment rates listed by the Bureau of Labor Statistics. Our unemployment rate 10 years ago was hovering at below two percent. Today that number is nearly in the double digits. Research Triangle Park is one of the most prominent high-tech places to work in the world. However, because of overseas outsourcing, decreases in research funding, a poor economy and failed banking and business RTP lacks its once prominent status and those tens of thousands they once employed. The same fate may be felt on our Centennial Campus. If grants, research efforts and business are reduced, so may the opportunities of our University. Internships and job shadowing requirements may be at risk for diminishing or slowly being phased out.