Unemployed, educated and indebted: More Millennials seeking work outside U.S.

By Chase Pattison on June 13, 2011

by Cryn Johannsen

 

The post comes from our partners at USA Today College. Read more great posts in their blog.

Recent graduates, as well as those who will be obtaining their diplomas in coming weeks, face a brutal U.S. job market. Millennials, with or without higher education, have been hit the hardest by the recession and are struggling with what the former Director of the White House National Economic Council, Larry Summers, called a “jobless economic recovery.” A recent report published by the U.S. Labor Departmentshows that for every new job, there are four unemployed Americans for that position. That means that Millennials are competing for positions against more experienced candidates. Moreover, specific data on youth unemployment continues to paint a bleak picture. A briefing paper published on April 20, 2011 by the Economic Policy Institute states: “in 2010, the unemployment rate for workers age 16 – 24 was 18.4% – the worst on record in the 60 years that this data has been tracked.”

Although educated Millennials have a much lower rate of unemployment in comparison to their counterparts with high school diplomas, they too are struggling to make ends meet. That is because the vast majority of them took out student loans to cover expenses for college, the cost of which continues to increase exponentially (outstanding student loan debt is expected to hit $1 trillion by 2012). To make matter worse, the class of 2011 are the most indebted of all graduates. Even if educated Millennials are able to find employment, there is yet another serious problem: most entry-level positions do not offer wages that cover the cost of basic living and allow them to make their student loan payments on time. A study published by the Institute for Higher Education Policy (IHEP) in March of 2011, for instance, shows that delinquency on federal loan payments has increased at an alarming rate.

Looking beyond U.S. borders for more career opportunities

Indebted and unemployed (or underemployed), many educated Millennials are finding themselves making tough choices about their futures. For some, that means heading back home to live with mom and dad. TwentySomething, Inc., a consulting firm, recently carried out a poll and found that 85% of graduates are moving back home. While a large majority of educated, young Americans might be willing to accept their situation in the U.S., and explore ways to improve their resume while living under the same roof as their parents, others have decided that living at home and looking for work within the U.S. is less than desirable. Instead, they are looking for career opportunities beyond U.S. borders. In fact, there is a growing number of Millennials who are choosing to leave the United States to work and live abroad. There are several reasons why young Americans are able to seek job opportunities outside of the U.S. First, most Millennials do not have the responsibility of raising children, which allows them greater mobility. In addition, they are generally healthier than older workers, making the option of leaving the country an easier choice.

Where in the world are Millenials going?

While it is true that expat communities from the U.S. can be found all over the world, Asia has become a particularly popular destination for recent graduates. Asia offers young Americans the opportunity to teach and explore new cultural terrain. For Asian-Americans, it offers them an opportunity to become reacquainted with their cultural background or allows them to reconnect with relatives who never left their parents’ homelands.

But where in Asia do most expats go or have gone, and why? Japan and South Korea have long been preferred locations to teach and work for young, educated Americans. Wages in both countries, at least historically speaking, have been high, and the cost of living – at least in South Korea – has remained low in comparison to many parts of the United States. That allows individuals to save up money and pay off their student loan debt. However, China is another top choice, offering competitive wages as well. In addition, more individuals are finding opportunities to work in Southeast Asian countries like Vietnam and Thailand.

Regardless of the person’s age, ESL jobs in Japan have always been coveted by most expats heading to Asia. However, with the recent and tragic events in Japan, advertisements to teach there suggest that the country is now struggling to attract talented teachers. For example, an international recruiting agency recently posted an ad for one of their clients on Dave’s ESL Cafe, a popular forum for ESL instructors. Stating that one of their clients in Japan is seeking to fill 75 teaching positions, the agency added:

  • “Due to recent events a significant number of teachers have dropped out of the program, but as the situation in Japan stabilizes there is strong desire to bring back some routine and get the country moving forward in a positive direction. Children in Japan are craving the stability of the familiar, which for many includes ESL classes. For ESL teachers this is an opportunity to support a country they admire that is recovering from a devastating blow from Mother Nature.”

Sufficient data that substantiates the agency’s claim is not yet available, and it only highlights one client of this particular recruiting agency. So it remains to be seen whether or not the devastating natural disasters and nuclear crisis that crippled the country in March will have a lasting effect upon the ESL market in Japan. Moreover, countries like China and South Korea do not require formal ESL certification, making it easier for Millennials with no teaching experience or certification to land teaching jobs with relative ease. China’s hunger for ESL instructors has become voracious, and experts speculate that it might eventually become a serious competitor for Asian countries like South Korea and Japan.

With the U.S. economy remaining sluggish, opportunities to work and earn money abroad might become increasingly popular among educated Millennials. Corrie Hulse, a millennial who is returning to work in South Korea for a third time, represents this group of young, educated Americans who have chosen to enhance their careers abroad (the full interview with Hulse can be read here). She had this to say about the importance of her generation looking for careers abroad: “I think . . . for Millennials, right now, there is greater opportunity for us internationally. We were built for this international market. We are mobile, adventurous, tech savvy, and grew up knowing the world was at our fingertips. More importantly, the international market wants us!”


Cryn Johannsen is the managing editor for EduLender’s blog, EduTrends. She is also the founder & executive director of All Education Matters, Inc.

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