Grads face better job market — and mounting debt

Jill on Money

With the economy and the job market picking up steam, companies are hiring more college graduates this year than they did a year ago, an increase of 9.6 percent, according to the National Association of Colleges and Employers. More than half of employers are offering signing bonuses, the highest percentage in five years.

Of course, getting a job is easier with a college degree. While the national unemployment rate stands at 5.4 percent, it’s 4.8 percent for recent college graduates and 2.7 percent for all college graduates. A degree also increases earnings potential: The Federal Reserve Bank of San Francisco found that the average U.S. college graduate is likely to earn at least $800,000 more than the average high school graduate over her working years.

All of this good news about college comes with a caveat: Landing a good job out of college often depends on a graduate’s major. According to a report by the Georgetown University Center on Education and the Workforce: “Recent college graduates who major in arts, psychology and social work earn $31,000 per year, only $1,000 more than the average high school educated worker. By comparison, recent graduates who majored in engineering earn $57,000 per year, almost twice as much as the average high school graduate.”

What if your child is not interested in the STEM (science, technology, engineering and mathematics) majors? You can’t force college students to study what you believe is most prudent for them; however, if they are likely to head into a liberal arts field with a lower earning potential, you need to steer them into a cheaper undergraduate education (community