for bachelor ’ s is significantly under , at 140,000 .
While that gap between high school and bachelor ’ s unemployment has shrunk since COVID , it remains largely unchanged when compared to the pre-pandemic era .
Yes , the number of unemployed with a high school diploma is slightly lower than levels that existed coming into COVID , but this is reflective of the tight labor markets and the lack of an available labor force .
The contrasts between high school and bachelor ’ s cannot be clearer than by examining earnings differences .
In 2001 , bachelor ’ s degree holders earned an average of $ 916 a week , and high school holders earned an average of $ 512 . The gap in earnings stood at approximately $ 400 a week .
Coming out of the Great Recession , that same gap in earnings increased to $ 500 a week . Fast forward to the emergence from COVID , and that gap is now $ 700 a week .
Just before the shutdowns , that gap was $ 635 .
So , despite the narrative , which is often rooted in politics , the gap in earnings has accelerated since emerging from the pandemic . Average weekly wages for high school diplomas increased by $ 91 from pre-pandemic to the 2nd quarter of 2022 .
For college graduates , average weekly wages have increased by $ 165 over that same time-period . When you get past the rhetoric , usually from those who know better and have degrees themselves , the evidence is clear .
Earnings for bachelor ’ s degree holders clearly exceed those with high school diplomas , with the latest data showing bachelor ’ s degree wages are 85 % higher than those with a high school diploma .
All the above is based on what has happened in the past and current reality . What about the future ?
These trends will only intensify , and we are already seeing that with the earnings gap difference accelerating coming out of the COVID pandemic . Yes , lower skilled workers are enjoying higher wages , and that is an achievement that should be celebrated . This is more about the availability of workers , and not necessarily a preference for lower skilled workers . The surge in technology and software investments , automation , and artificial intelligence are just a few reasons why the wage gap between bachelor ’ s and high school will only increase .
College going rates are declining , but we are at a time in history where education attainment is perhaps the most critical . This is not the narrative always played out among various political circles , but the data suggest otherwise . Declining college going rates spell stagnant wages , higher unemployment , and weaker employment growth in years and decades ahead .
Dr . Uric Dufrene is the Sanders Chair in Business at Indiana University Southeast . He ’ s contributed economic analysis to several area publications including the News and Tribune and Southern Indiana Business Source . He can be reached at : udufrene @ ius . edu