What college grad unemployment means for the community

TERRE HAUTE, Ind. (WTHI) - A report shows 6.5 million U.S. young adults are neither in school nor in the workplace.  So what does that mean for our local community?   

They're facing high unemployment, depressed wages and loads of debt. And they're only in their twenties.   

The unemployment rate for young Americans is the worst it has been in 60 years. And unemployment rates are still high right here in the Wabash Valley.

"It worries me,” said Kevin Kelley, Indiana State University (ISU) student.

“Yeah, I think it’s just a lot of pressure. Going to college and not knowing whether you will get a job at the end,” said Katrina Branson, ISU student.    

Vigo and Vermillion Counties sit at an 8.7 percent unemployment rate, while Sullivan County is at 10 point 3 percent.  

Clay and Parke counties are around the 8.6 percent mark.   

If people are unemployed, production of goods and services falls off in the community.  

And simultaneously, the people who are unemployed lack the resources to purchase those goods and services.  

A new study shows widespread unemployment in neighborhoods reduces resources, which may result in inadequate, low-quality housing, underfunded schools and limited opportunities for employment.   

College-educated people are now scraping by in lower-wage jobs, which only contributes to the problem.

“(Are you worried about paying off your bills?) Yes. I actually am,” said Kelley.

“I don’t think I’m going to be making money when I get out,” said Conner Bridges, ISU student.     

Graduating in a bad economy also has long-lasting economic consequences. For the next 10 to 15 years, the Class of 2012 will likely earn less than they would have just a decade ago, making graduating college students unsure about their futures.

“I might move home for the first year,” said Kelley.

“I’m still going to be worried about it, no matter what,” said Branson.   

Which means our local economy could take awhile to heal.