As graduation approaches, many eyes are on the employment prospects for college graduates. The latest federal employment data paints a more optimistic picture for people with college degrees, but economists are weary of overgeneralizing the trend.

According to a U.S. Department of Labor report issued on Friday, the unemployment rate in April for college graduates is 3.9 percent, compared to the 7.5 percent average unemployment rate for all of the labor force above age 16.

According to UW economics professor Christopher Taber, although the unemployment rate has improved compared to four or five years ago, it is still high historically.

The unemployment rate is one way to measure the payoff of a college degree, but not everyone agrees on the reasons behind high employment rate for college graduates.

Some also argue the jobs created are low skill-demanding positions that do not require a college degree.

“Some would say given that the jobs are in short supply, even if you don’t need a college graduate to do the job, you will hire someone who has a college degree just because you can,” Taber said. “I haven’t seen clear evidence for that, but it’s one story. It’s plausible.”

According to the report, the unemployment rate for people with less than a high school education is almost three times higher than for college graduates.

The report said out of the total 165,000 jobs created in April, more than 20 percent were in food services and “drinking places.” Other fields that saw increases in employment are the professional and business services, retail trade and health care.

“I don’t think a college degree is necessary for certain jobs, but it helps people think in ways that make them do a better job even if you don’t need it,” Taber said.

Economists also looked at the income gap between college graduates and people who do not have a college degree in the report.

According to Taber, on average, every year of college education increases wage by eight percent.

“So when you add that up, 32 percent is a pretty big difference,” Taber said. 

Taber said the premium associated with a college degree showed resilience in the years of recession. He said college graduates were hit in the early part of the recession, but were able to recover better than lower-skilled workers.

Jennifer Buelow, the career coordinator for the economics department, said in an email to The Badger Herald the Wisconsin School of Business requires graduates to report their employment status.

The “Year In Review” issued by the Wisconsin School of Business said out of the business students graduating in December of last year, 59.7 percent accepted full-time employment and 17.4 percent decided to continue their education.

Buelow said employers continue to actively hire UW graduates.

“UW-Madison economics alumni reach out to me to find out how they can recruit more Badgers for their company,” Buelow said. “The most difficult factor for recent graduates to find a job is not having adequate experiences outside the classroom as an undergraduate.”

Although the latest data on unemployment rates suggests reason for confidence in the employment prospects for this year’s graduates, officials said college graduates who actively prepare themselves for the workforce have better chances of finding employment than those who do not.

Developing skills and experience through internships, part-time jobs and student organizations is imperative, Buelow said.