As students and recent graduates begin to enter the workforce, they are feeling the weight of rising inflation in everyday life.<\/p>\n
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.<\/p>\n
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.<\/p>\n
\u201cStudents in 2026 face more downside risks than students in 2016,\u201d Fullerton said. \u201cThe job market also provides fewer job opportunities than was the case in 2016, further limiting student options.\u201d<\/p>\n
Fullerton attributed the challenges to what he described as a \u201cno hire, no fire\u201d phase in the national labor market. He also said employers\u2019 experience requirements can limit opportunities for applicants.<\/p>\n
\u201cInflation 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,\u201d Fullerton said.<\/p>\n
Fullerton said he believes increased international trade, increased immigration and a lower federal deficit would help lower both inflation and interest rates.<\/p>\n
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.<\/p>\n
\u201cSupply chain disruptions like the Iran War always raise inflation well above what it otherwise would be,\u201d Fullerton said. \u201cLarge scale fiscal deficits make it extremely difficult to reduce inflation rates.\u201d<\/p>\n
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.<\/p>\n
\u201cI can barely afford to keep eating and paying for gas now, so how can rent, groceries, utilities and God forbid, emergencies be afforded?\u201d Ramos said.\u00a0\u201cEven a higher wage like $20 an hour isn\u2019t cutting it.\u201d\u00a0<\/p>\n
He expressed his worry for uncertainty in the future with regard to wages and unaffordability, stating he is currently living paycheck to paycheck.\u00a0\u00a0<\/p>\n
\u201cMy biggest concern is literally making a living at all and being able to afford my own place in the late future,\u201d Ramos said. \u201cWages in the majority of employment are unable to keep up with the rising costs even now and they continue rising.\u201d\u00a0<\/p>\n
Ramos also urged elected officials to consider the financial challenges students face when making decisions about college funding. \u00a0<\/p>\n
\u201cPlease do not cut the funds for majors that aren\u2019t \u2018making it financially,\u2019 Ramos said. \u201cWe are already struggling enough, not even the \u2018successful\u2019 majors are getting by as smoothly as you believe.\u201d\u00a0<\/p>\n
As the midterm elections approach, Fullerton\u2019s economic analysis and Ramos\u2019 experiences as a university student offers insight into the effect of inflation and market conditions for upcoming and recent graduates.\u00a0<\/p>\n