SectionsStudents prepare for recession
Versatility could be key if unemployment rises
Trysta Isenbletter
Issue date: 2/19/08 Section: News
Preparing to graduate requires a lot of attention and planning, and there is much to consider, like where to live, what job to take and whether to rent or buy a house.
But there is one thing that could affect all of those activities, and students don't usually plan for it: a recession.
Thomas Wyrick, an economics professor at Missouri State, said that although a recession has not been declared since the 2001 downturn, he thinks it is a "close call."
"A recession basically is when economic activity turns down," he said. "And I think the economy is definitely slowing down."
Ben Bernanke, chairman of the Federal Reserve, seems to agree with that.
He told a congressional committee on Feb. 14 that there are banking concerns over the strain in the market, which could begin to influence consumers.
"The softer labor market, together with factors including higher energy prices, lower equity prices and declining home values, seem likely to weigh on consumer spending in the near term," he said.
Wyrick said recessions are determined by the Business Cycle Dating Committee when there are at least six consecutive months of down-turning economic activity, but that it could be hard to identify.
"Even when the economy is doing fine, it is only growing 3 percent a year, and 3 percent is kind of hard to detect when you're not studying it," he said.
Recessions tend to have an adverse effect on the workforce, the housing market and on overall production within the country.
Wyrick said many companies stop hiring and total employment goes down, and although most people are not affected, it is something many fear.
"The unemployment rate might only go up from about 4 percent to 6 percent, but if we're talking 2 percent of 150 million people, 3 million people are out of work and competing with students in the job force," he said.
So how do students cope with that flood of competition?
Jack Hunter, director of the Career Center at Missouri State, advised students to become more versatile.
But there is one thing that could affect all of those activities, and students don't usually plan for it: a recession.
Thomas Wyrick, an economics professor at Missouri State, said that although a recession has not been declared since the 2001 downturn, he thinks it is a "close call."
"A recession basically is when economic activity turns down," he said. "And I think the economy is definitely slowing down."
Ben Bernanke, chairman of the Federal Reserve, seems to agree with that.
He told a congressional committee on Feb. 14 that there are banking concerns over the strain in the market, which could begin to influence consumers.
"The softer labor market, together with factors including higher energy prices, lower equity prices and declining home values, seem likely to weigh on consumer spending in the near term," he said.
Wyrick said recessions are determined by the Business Cycle Dating Committee when there are at least six consecutive months of down-turning economic activity, but that it could be hard to identify.
"Even when the economy is doing fine, it is only growing 3 percent a year, and 3 percent is kind of hard to detect when you're not studying it," he said.
Recessions tend to have an adverse effect on the workforce, the housing market and on overall production within the country.
Wyrick said many companies stop hiring and total employment goes down, and although most people are not affected, it is something many fear.
"The unemployment rate might only go up from about 4 percent to 6 percent, but if we're talking 2 percent of 150 million people, 3 million people are out of work and competing with students in the job force," he said.
So how do students cope with that flood of competition?
Jack Hunter, director of the Career Center at Missouri State, advised students to become more versatile.
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