Hi
I want to know where do people work when they get their college degree.
Like say each year there are thousands of accounting, engineering, etc. graduates. Do they find/fill accounting and engineering jobs in their major field.
What if say the jobs are not available for all the accounting graduate. For example, say there are 10,000 accounting graduates each year. and when you look for accounting jobs. there are 6,000 accounting jobs available. So 4,000 accounting graduates won't find jobs in their field. What do those 4,000 graduates do?
Do they work somewhere outside their fields?
Basically supply and demand theory. More accounting graduates, but less accounting jobs available. Where are the rest of the accounting graduates suppose to find jobs if they can't find jobs in their field?
Should they go back to college and get another degree or just find any job for now ?
(not picking on accounting majors, just using them as example.)
thanks Well, that's not what happens right away; but in the long-run, that is what will happen. At the end of the day, society needs accountants; the questions is simply how many. So, let's say that the U.S. needs 300,000 accountants. Now, let's say that 50,000 of those accountants are needed in New York.
New York has more than 8,000 accounting graduates per year. Is there a shortage? No! That's because there are already people working in the accounting profession, and most of those 50,000 positions are filled. But some will be open from time-to-time. Let's assume that in each particular year, 2% of the openings will be available for new graduates. That's 1,000 openings in the accounting profession for 8,000 graduates to fight over.
Here is what will happen; each graduate will have serveral interviews, and of the ones that are not "weeded" out of the selection process, let's say 4,000 will now have to bargain for a competative salary. In this case, they can expect a very low salary, since the market is saturated with accountants in New York. Now, some lucky graduates will get to be part of the 1,000 people who get a job; but we don't care about them anymore.
We are now concerned with what will happen to the remaining 3,000 people who were qualified, but still didn't get the job. Well, ask yourself what you would do in such a situation. You would determine a cost-benefit analysis of relocation versus re-specialization. Do you relocate to lets say Chicago where there are 50 ads trying to give as much incentive to people to come to Chicago for accounting; or will you take up the costs of re-specializing in some other field?
That will obviously depend on your situation. Perhaps you were interested in Tax, but only Auditing jobs are available in New York. It is worth it for you to respecialize, or to just move to a different location to find employment. In the end, society will have as many accountants as it needs in the positions it needs them to be. And that will go for any profession. These remaining accountants may end up teaching at a college/university, giving tax training programs, becoming state auditors (a job that nobody would otherwise do); or maybe drive a taxi cab or something.
The point is, that they will be taking advantage of thier next best alternative, which is the tool that economics has built into effeciency. If these people choose to not relocate, and rather respecialize into something completely different, then it must be the case that they are recieving a higher benefit from this alternative than they normally would recieve from accounting jobs in the state of the local economy at that particular point in time. When the economy changes, maybe it will become beneficial for some people to go back to accounting. This is why, in professions like accounting; individuals usually do accounting related work if they cannot fit into their exact specialty; and then wait for the economy to adjust.
The same goes for engineers, lawyers, doctors, etc. When people cannot afford them, jobs close, but they must remain in touch with the profession to be able to re-enter quickly when the economy improves.
I hope this was helpful, Best of Luck! |
