A college diploma or an advanced degree is a key to economic success; Federal Reserve Chair Janet Yellen stresses in a graduation speech at the University of Baltimore. On Monday, Ms. Yellen has emphasized the importance of education in economic success, saying a college degree is going to be increasingly significant to help laborers strive in a labor industry that is always devising means to replace humans with machines and crosses state borders.
Last Monday, Dec. 19, 2016, Federal Reserve Chairwoman Janet Yellen gave a speech to the graduating class of the University of Baltimore, pointing out the importance of completing a college degree to keep and get higher-paying jobs. Here are the important things about education or completing a college degree that she pointed out:
Completing a college degree is a key to economic success. Yellen said economists are not certain about many things, but they are quite sure that an advanced or college degree is a key to economic success, the Fortune has learned.
The Fed leaders also said she sees indications that wage growth is picking up, The Wall Street Journal has learned. The president-elect Donald Trump has announced that he'll cut taxes and improve innovation, which both according to Fed leader could have a good effect on the economy.
College graduates are more likely to get jobs after graduations. Ms. Yellen said in her speech that the jobs that globalization creates in the United States, serving a global economy of billions of people, are more likely to be filled by those who have secured the advantage of higher education. Department of Labor reported a 2.3 percent of the unemployment rate for college graduates in November, as contrasting to 4.9 percent for high school graduate who has never gone to college.
A good education enhances the ability of a person to adapt to an altering economy. Yellen told the graduating students that while people don't know till when technology will continue to advance; till when will globalization will carry on; how fast the economy will grow; how consistently and swiftly employment will expand, there is one thing that's for sure, that is success will continue to be linked to education, in part as education improves one's capability to adapt to a changing economy.
The Fed leader did not talk about monetary policy but instead focused on the theme which she has been very vocal about in latest weeks: the necessity to properly prepare and educate laborers for the future jobs. A 2015 survey has found out that young adults were more positive about their job prospects and that 61 percent of young adults had an optimistic viewpoint of their employment projections up to 45 percent in 2013.
