On: 10% unemployment yet every startup in NYC struggli...

[phil]

That's not "basically full employment" -- it's the highest unemployment rate among college grads in the last 2 decades.

Here's a BLS report that shows that more clearly: http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?request_...

[charlesju → phil]

http://en.wikipedia.org/wiki/Full_employment

"The idea that the full-employment unemployment rate (NAIRU) is not a unique number has been seen in recent empirical research. Staiger, Stock, and Watson found that the range of possible values of the NAIRU (from 4.3 to 7.3% unemployment) was too large to be useful to macroeconomic policy-makers. Robert Eisner suggested that for 1956-95 there was a zone from about 5% to about 10% unemployment between the low-unemployment realm of accelerating inflation and the high-unemployment realm of disinflation. In between, he found that inflation falls with falling unemployment."

[achompas → charlesju]

You can't take the American labor force's NAIRU and apply it to college grads--historically, they have lower unemployment.