As students and recent graduates begin to enter the workforce, they are feeling the weight of rising inflation in everyday life.
According to the Consumer Price Index inflation calculator, inflation has gone up 6.85% since 2024. The U.S. Bureau of Labor Statistics reports that the average price of gas is $4.35 per gallon, an increase of 31.82% since 2024.
University of Texas at El Paso (UTEP) professor of economics and finance Thomas Fullerton, Ph.D., said students today face different economic challenges than students did a decade ago.
“Students in 2026 face more downside risks than students in 2016,” Fullerton said. “The job market also provides fewer job opportunities than was the case in 2016, further limiting student options.”
Fullerton attributed the challenges to what he described as a “no hire, no fire” phase in the national labor market. He also said employers’ experience requirements can limit opportunities for applicants.
“Inflation causes interest rates for consumer loans to be higher than what they would otherwise be and debt service costs reduce the financial flexibility of new graduates,” Fullerton said.
Fullerton said he believes increased international trade, increased immigration and a lower federal deficit would help lower both inflation and interest rates.
As students prepare to cast their ballots for the midterm elections next month, Fullerton also discussed factors he believes contribute to inflation, including supply chain disruptions and federal spending.
“Supply chain disruptions like the Iran War always raise inflation well above what it otherwise would be,” Fullerton said. “Large scale fiscal deficits make it extremely difficult to reduce inflation rates.”
Eduardo Ramos, a UTEP sophomore majoring in music performance, is one of the many students expressing concerns about rising prices as he steps into adulthood.
“I can barely afford to keep eating and paying for gas now, so how can rent, groceries, utilities and God forbid, emergencies be afforded?” Ramos said. “Even a higher wage like $20 an hour isn’t cutting it.”
He expressed his worry for uncertainty in the future with regard to wages and unaffordability, stating he is currently living paycheck to paycheck.
“My biggest concern is literally making a living at all and being able to afford my own place in the late future,” Ramos said. “Wages in the majority of employment are unable to keep up with the rising costs even now and they continue rising.”
Ramos also urged elected officials to consider the financial challenges students face when making decisions about college funding.
“Please do not cut the funds for majors that aren’t ‘making it financially,’ Ramos said. “We are already struggling enough, not even the ‘successful’ majors are getting by as smoothly as you believe.”
As the midterm elections approach, Fullerton’s economic analysis and Ramos’ experiences as a university student offers insight into the effect of inflation and market conditions for upcoming and recent graduates.
Vanessa Orozco is a staff reporter for The Prospector and may be reached at [email protected]