The great recession has been brutal for everyone. However it was particularly harsh for those fresh out of college. The unemployment statistics from the Bureau of Labor Statistics for persons 16-24 years of age, displays this stark reality. The employment rate for this age group is the lowest in the last 50 years :

Youth employment in July 2011

Does this mean that you should put off your grad school plans?

Not really! There is a strong evidence that education pays off. In fact, it pays off big in the long run. According to the Bureau of Labor Statistics, both employment level and wages are significantly higher if you have a master’s degree or above.

Education pays in higher earnings and lower unemployment rates

In short, you need to think of your grad school years as an investment that pays off in the long run. However you need to ensure that you go to the best school in your area of specialization and above all keep your costs of grad school down. This also includes keeping your cost of GRE prep down to a minimum.