College Graduate Unemployment Higher than Nationwide Joblessness
The unemployment rate for young people (22-27 years old), holding college degrees has reached its highest level in twelve years, not including the pandemic years. Young people’s unemployment rates are now higher than the overall unemployment rate in the country, reports AP News.
The rise in unemployment could mean that businesses are stopping or pausing new hiring because of the uncertainty stemming from tariff increases, increases that could slow or limit growth in certain sectors.
Joblessness rates may also be a result of the increased use of artificial intelligence—especially in entry-level finance and IT positions.
These rates have caused younger graduates to have increased concerns about the value of a college degree. 45% of workers have a four-year degree, this is up from 26% in 1992. Although these figures make having a degree less of a distinguishing aspect in a job application, holding a college degree still offers lifetime benefits according to economists. Graduates earn higher pay and experience much less unemployment throughout their lives.
The country’s overall unemployment rate is low at 4.2%. Job increases in professions with a larger number of college graduates, such as legal services, accounting, and IT have not increased in the past 12 months.
