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When we grow up we often hear that education is the best investment that we can make.   Let’s answer the following question:  Is there a benefit relative to the risk of unemployment from more education?

The United States Department of Labor details the unemployment rate as a function of eduction.  Here are unemployment statistics from March 2008. 

Education Level                                     Unemployment rate
Less than a high school diploma                      9.5%
High school graduates, no college                   5.6%
Some college or associate degree                     4.1%
Bachelor’s degree and higher                            2.1% 

Table A-4. Employment status of the civilian population 25 years and over by educational attainment

The improvement in the unemployment rate is quite dramatic (up to 4X difference) as a person obtains more education.  The improvement from high school diploma to a bachelors degree and higher reduces the risk of unemployment by over 50%!   I think it’s important for younger people to be aware of the benefits of higher education beyond the obvious benefit of increased income.