This new group of college graduates represent the new explorers who seek more flexibility in how they plan to work and live. Many are forecasted to become Individual Entrepreneurs.  

Compared with today, the past few graduating classes found “the opportunities were very plentiful,” said Guy Berger, director of economic research at the Burning Glass Institute, a labor market research group. “Employers were falling over themselves to hire them.” Since then, he said, “It’s gotten more challenging for sure.” More than 40% of these new college seniors said they planned to pursue freelance or gig work after walking across the stage, a recent survey by the job marketplace Handshake found. Almost a third expected to do so on top of a full-time role.

These new college graduates also have different motivations. They are already more focused on how life and work will balance. They realize that our financial position in life is always a major challenge for a significant percentage of the workforce. Perhaps they already understand the basic wealth accumulation principle …“Earn More than we Spend.” These new college graduates also realize that there are more choices available to them when it comes to developing an income.

The data we explore, provided by financial institutions, continues to reveal a very low average amount of savings for Americans aged 25 – 55. The Fed’s most recent numbers show the average savings for the age group that includes 25-year-olds is $20,540. The median savings is $5,400. Average Savings for Americans by age 40 is $41,540. The median savings is $7,500. These numbers reflect the challenges of many Americans, and our new crop of college students are paying more attention. In other words, they know the numbers, and the numbers represent what is perceived by them to be the result of the more traditional approach to living and working. New college graduates are already familiar with the impact of technology, the use of robotics and artificial intelligence and some have already engaged in opportunities to earn income working a side hustle while in college.

Some form of engagement in Individual Entrepreneurship/Gig Economy choices and possibilities are becoming the solution for a growing percentage of Americans. The gig economy was estimated to have over 65 million participants last year and the compound annual growth rate (most estimates) remains a robust 16% + per year through 2027. We continue to take the position that entrepreneurship is an uncommon freedom. This freedom is no longer reserved for a few as the Individual Entrepreneur has become a possibility for all… and the newest class of college graduates is apparently paying attention.