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The coronavirus has left millions of people out of work, which makes it more difficult for recent graduates. Approximately 4 million students have graduated during an economy with the worst unemployment numbers we’ve seen since at least the Great Depression. There is, however, some good news. While we have been on an economic downturn for the last three months, unemployment numbers look better now than what experts thought they would. During the month of May, 2.5 million jobs were created. So, it’s possible that we might already be through the worst of it.
Here are some tips on how recent graduates can navigate this difficult job market and what they can do to survive until things get better.
During times like these, it’s always good to gain some perspective. There have been many times when graduates entered the workforce during or right after a recession. More recent examples were the recession of 2000-2002 and 2008-2009. So while things might be difficult right now, this too shall pass. We might be in the deepest recessions we have seen in a long time, but it may also be the shortest. See it as an opportunity. And hopefully, we might be heading back up when it comes to the economy.
Many graduates are bent on finding a job that’s within their field of study. They want to get a certain job that makes a certain amount of money, but that’s not how it works. Find a job and do it. Gain some experience, and remember that it’s not the job you’ll be doing for the rest of your life. Don’t expect to make a six-figure salary right out the gate. So while it might be a “left turn” from the job you were hoping for, things will work out as the economy comes back.
Moving back in with Mom and Dad might be a good option if it’s available, but don’t spend all day playing video games. Take the time to figure out your finances, save up some money, and improve yourself. No one wants to move back in with Mom and Dad. But based on the current economy, it might be a good option.
A lot of people leave school with student debt. And because interest rates are low, it’s one of the best times to look at those fundamental factors that build wealth. Think about refinancing your student loans. And if you got a refund from college, put it toward eliminating debt or an emergency fund. Start your budget (regardless of how small) because tracking is the key. As you enter the workforce and start to make some real money, now is the time to work things out.
Instead of spending all day playing video games, use the time to improve yourself. Update your resume and your social media platforms. Take different courses, and get certifications in your field so you can expand your knowledge. Get into the workforce, and get some experience because things will work out in the end.
If you’re a recent graduate and need advice on how you can get a head start on your finances, feel free to reach out to Trevor Shakiba at Shakiba Capital.
With the 2017 Tax Cuts and Jobs Act, the federal government was able to create a wealth-building vehicle for investors by giving them access to opportunity zone funds. Trevor explains the pros and cons.
You might be wondering how you’ll be able to survive the current economic downturn, and it could cause you make a decision based on emotions (which are no doubt running high). There is a way out of this situation, but it requires a strategy.