Young Job Seekers Hit Hard by Economy

The campus coffee shop has allowed Elise Manbert to help work her way through college at UCLA.

The only problem? She graduated five months ago.

"Both my parents had jobs when they left college and so I kind of always expected that was going to be the same situation for me," Manbert said.

What she didn't plan on was hitting one of the worst job markets for college graduates in a generation. Now, even as the economy begins to recover, job creation is lagging, reports CBS News correspondent Ben Tracy.

"A couple of my friends have unpaid internships, a couple are working at just part-time, a lot of them are in coffee shops," Manbert said.

Two years ago, the unemployment rate for 20 to 24 year olds with bachelor's degrees was just 2.2 percent. Now it is more than four times that at 9.3 percent.

Kathy Sims heads UCLA's Career Center and says this is the worst job market she has seen in her 32-year career. Next year could be worse.

"The class of 2010 will not just be competing with itself," Sims said. "It'll be competing with some of the class of 2008 and many of the class of 2009."

Compounding the problem is the huge amount of debt students have after they graduate. The average undergraduate credit card balance is $3,000 dollars, and the 60 percent of college graduates who borrowed money to get through school each owe an average of $23,000.

Kyle Voigt graduated a year ago hoping to get a job in advertising. He moved back in with his dad and has yet to find a job. Starting in November, he'll have to start paying back about $20,000 worth of student loans.

Voigt is considering joining the Navy. Meanwhile, Peace Corps, Americorps, and Teach for America received record numbers of applications.

Elise Manbert is still optimistic.

"I just feel like my personal luck has to improve," she said.

And that she can finally graduate to a full-time job.