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Labor market improves for new college graduates

At last, incomes for the latest college diploma-holders has risen to the highest level in more than a decade. And unemployment rates are falling quickly, according to a report from the Federal Reserve of New York.

The image of recent grads working in coffee shops is fading. But the data show that their experience highlights a growing divide in the U.S. economy between those with college degrees and those without.

Of course, graduates need the money. Most of them have huge college-education loans to pay off.

Richard Deitz, a senior economist at the New York Fed, and his colleague Jaison Abel, have developed data which answers the question of whether a college degree is worth the cost anymore.

The unemployment rate for college graduates has fallen from more than 7 percent in 2010 to just 4.9 percent recently. That is compared with a 5.3 percent jobless rate recently for all workers.

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