The Kareem Filling

Rising unemployment rates

2009-03-16T13:48:00.000-07:00

As college graduates enter the job markets, they will be greeted with rising nationwide unemployment and a global economy in peril.

"Students who are graduating have not encountered a job market like this in recent memory," said Benjamin Passty, director of the University of Cincinnati Applied Economics Research Institute.

The unemployment rate currently stands at 8.1 percent nationwide, a 3.2 percent increase since the start of 2008. Roughly 12.5 million people are currently out of a job and 2.5 million more since the 2008 holiday season. These most recent numbers most resemble the economic downturn during the early 1980s. in 1982 the national unemployment rate ballooned from 8.6 to 10.8 percent, according to the U.S. Bureau of Labor Statistics. It is interesting to note that in 1983, however, the unemployment rate rebounded from 10.4 percent to 8.3 percent over a 12-month period.

Rabid unemployment is hitting metropolitan areas throughout the country hard. Unemployment rates were higher in December 2008 than a year earlier in 363 of 369 metropolitan areas and lower in just five areas, the U.S. Bureau of Labor Statistics reporter on Feb. 4.

More specifically, the Cincinnati-Middletown region reporter 8.2 percent unemployment rate, slightly higher than the 8.1 percent national rate. Within Ohio, Toledo posted the highest rate at in 2008 at 9.8 percent. Dayton registered the lowest at 6.2 percent.

The prospects for a turnaround, however, are murky as it's too volatile to forecast the global financial crisis.

"The common wisdom is that the stock market as about six months ahead of the economy; it's still very unstable."

There are a couple rays of light peeking through the dim employment environment for students. Graduating students and college-educated people do have a slight edge in the current market. Unemployment rates for the aformentioned are between 1 and 3 percent, according to Passty.

That is simply to hard to believe.

The Univesity of Cincinnati Career Development Center (CDC) - an organization geared to guide students through the labyrinth that is the job market - urges students to remain focused, understand that they are not only competing for jobs with their peers but also with workers that have previous experience in the industries they wish to get into, according to CDC Director Linda Parker.

"Students have to be flexible. Students have to think about what they want to do," said James Novak, assistant director at the CDC. "They need to think about what industry they want to go in and where they're willing to go."

There is, however, a sense of optimism throughout CDC for the future of the job market and services available at the CDC.

"For seniors and juniors that have not tapped into the CDC they are simply wasting dollars they have invested in quality education, they're just giving it away," Parker said. "If they're waiting for graduation, the majority of our employers are here fall quarter."

Both Passty and Parker urged all students to take a global perspective when searching for a job. It's imperative for students to understand that in today's global economy, there are job opportunities all over the world, according to Passty and Parker. Employers will always have interest in those that are driven, skilled and willing to contribute to their organization, Parker said.

"Students need to know they will be competing internationally," Passty said. " Now we're seeing international graduate degrees competing with American graduate degrees."

The industries of health care, technology, and energy have shown the most resiliency during this economic meltdown. The bedrock need for nurses, therapists and physical trainers are what make health care so resilient in addition to the physicians.

Bearcats Season in Photos

2009-03-16T13:17:00.000-07:00

A few selected images from the 2008-09 University of Cincinnati Basketball Team. The Bearcats finished 18-14 with a 8-10 conference record. Star guard Deonta Vaughn and the team failed to earn a bid into the NCAA Tournament. Under Head Coach Mick Cronin, the Bearcats have progressed each and every year looking to earn an NCAA Tournament berth next season.

Toyloy Put Back

2009-03-13T12:37:00.000-07:00

UC Forward Steve Toyloy throws down a put-back dunk against Arkansas Pine Bluff.

Image taken by Kareem Elgazzar

The Banks Project

2009-03-13T10:47:00.000-07:00

There are still some issues that I feel that need to be addressed, like Cincinnati's Bank Project. The painstakingly long, bureaucratic process plaguing this city finally has had some tangible process. On Wednesday, Feb. 25 workers began pouring concrete for the foundation - a seemingly endless process to get things moving.

The building site, located between Great American Ball Park and Paul Brown Stadium, is an 18-acre plot of land located on Mehring Way, adjacent to the Ohio River. This monumental project will cost almost $1 billion over the next 10 years.

This is money well spent.

It does seem like a chunky price tag to build to what would be the closest thing to an entertainment district in Cincinnati. The argument that this is not the time to be spending large sums of money on building projects if flawed as well. Bold action is what is required to stimulate our local economy and to inspire people about our city's future.

While people are the Cincinnati area flock to Newport for entertainment and recreation on the weekend, downtown is simply a ghost town. The Banks Project will provide a healthy competition for Newport's businesses.

Cincinnati Mayor Mark Mallory during his State of the City address touched on economic issues such as The Banks Project and streetcar lines. His overall tone was one of strapping conviction for the completion of both.

"We have done our homework and the benefits are clear," Mallory said. "We expect to see at least $1.4 billion in our neighborhoods all across the city. The benefits of a streetcar system are too significant to allow the naysayers to derail our efforts."

Mallory has the right idea. Investing in the city's sustainability and marketability will further ensure Cincinnati's future prosperity. I for one cannot wait 10 years to see how the Banks Project will turn out. I look forward to spending my time and money in Cincinnati, right on the river, instead of crossing it.

"The facts are clear," Mallory said. "Streetcars must be a part of Cincinnati's future, and we will fight to make it happen."

We could use more areas in Cincinnati like the Banks - a pedestrian-friendly area with shops, grocery stores and residential units all in one area. These kinds of areas will cut down the need to drive in this city, making Cincinnati environmentally more responsible.

The planners of this city completely mucked things up during the 1980s and '90s. Instead of planning for riverside development, this crack squad of motivated individuals found it beneficial to build shanty warehouses, coal depositories, and two new stadiums on valuable, desirable land.

Imagine if Great American Ball Park was built on the other proposed site of Broadway Commons? A ballpark built into the city would have established a friendly, intimate environment for the surrounding areas. People say," I don't want to go down to Over-the-Rhine to see a baseball game." For crying out loud, the whole area would have naturally been redeveloped to make it suitable commercial businesses.

That is the problem with this city sometimes: There is this elitist mentality that if a neighborhood happens to be in poor condition, nothing can be done to revitalize it. That's got to stop. It's inexcusable. I mean, if we are to regularly verbally bash Cincinnati, calling it names like "Cinci-nasty," then shouldn't we take a more proactive approach to fix our city?

Mark Twain once said," When the end of the world comes, I want to be in Cincinnati because it's always 20 years behind the times."

Let's prove him wrong Cincinnati.

State of the City

2009-03-13T10:17:00.000-07:00

Cincinnati Mayor Mark Mallory gives his State of the City address to a crowd at the Duke Energy Convention.

Image taken by Kareem Elgazzar

Cronin Gets T'ed Up

2009-03-13T10:14:00.000-07:00

Head Coach Mick Cronin receives a technical foul during the game against Notre Dame on Feb. 3 at US Bank Arena

Image taken by Kareem Elgazzar

Lance Durham Goes Deep

2009-03-13T10:07:00.000-07:00

UC first baseman Lance Durham crushes a solo home run against cross-town rival Xavier University.

Image taken by Kareem Elgazzar

Unemployment hits students hard

2009-03-13T09:13:00.000-07:00

Students across the country are quickly finding out you don't have to have millions invested to understand the magnitude of the nation's economic problems.

With markets and lending firms struggling to stay afloat, students may find it more difficult to obtain a loan for school. Several factors need to be taken into account to forecast the future of the student loan industry.

The one benefit students have on their side is that all student loan are federally backed. That is, is a student defaults on a loan, the government will pay most of the money back to the lender, according to Debashis Pal, a University of Cincinnati economics professor.

There are, however, several setbacks students may face as they search for loans. As the economy weakens and job losses increase, the unemployed gravitate toward universities in search of better skill sets and as a result, even more pressure is put on an already tight credit system, according to Pal.

And if that wasn't enough, concerned high school graduates are flocking to universities across the country for fear of failing to find a job, Pal said.

"Student loans are not like a house of cards," Pal said. "However, student savings accounts, which may be used to pay for school, have lost considerable value as of late and as a result they find it hard-pressed to obtain loans in an already faltering system."

Banks, on the other hand, have made many poor-judged investments recently, which reduced the amount of capital they are able to lend out, whether for private causes or for a student loan, according to Pal.

"This $700 billion bailout plan passed just before Bush left office is absolutely nothing compared to the bad investments [banks] have made," Pal said. "So they will be very reluctant to give loans to students because they might be able to get a better return lending to someone else."

So what does this mean? In other words, the combination of an overall weakening economy, rising unemployment and limited investments creates an atrocious triage - a fateful triangle. Limited capital resources doesn't bode well for current and prospective students.

There is, nonetheless, light at the end of the tunnel. There have been government initiatives to ensure there will be enough federal money to go around for higher education. On Oct. 6, 2008 New York Senator Charles Schumer sent a letter to then Treasury Secretary Henry Paulson requesting they keep in mind the plight of students.

In late September 2008, Department of Education officials urged Congress to add another $6 billion in new funds on top of the already appropriated $14 billion for the 2009 FY.

Earlier this year, the Bush administration signed legislation to ensure the uninterrupted flow of federal student loans, Pal said."

"This allows the government, specifically the Department of Education, to buy back some loans from banks," Pal said. "In effect making room for banks to give more student loans to students," Pal said.

There are a few things that students can do to steer their ways through this economic downturn.

"The number one piece of advice I can give to students is to try to start a business out of their dorm room," said Benjamin Passty, director of the UC applied economics research institute. "The human capital of trying to start a business early, is actually worth more than the difference between a "B" and an "A" in class, [but] I'm certainly not going to encourage people to not study."

2009-01-13T09:40:00.000-08:00

Image taken by Kareem Elgazzar | The News Record

Obama supporters cheer as then Sen. Barack Obama took the stage at Nippert Stadium on the campus of the University of Cincinnati.

A Little About Me

2009-01-13T09:36:00.000-08:00

My name is Kareem Elgazzar and I am a fifth-year journalism student at the University of Cincinnati. Currently, I am the Opinion Editor at the independent student newspaper at the University of Cincinnati, The News Record. In addition to my editing responsibilities, I am a news writer and sports photographer. Some highlights of my journalistic career are covering President-elect Barack Obama's visit to Cincinnati as well as shooting the 2009 Orange Bowl. My areas of expertise are in the realm of politics, social issues and economics.