More College Grads Struggling in the Job Market

As college graduation season arrives, many new graduates are facing an uncertain job market. Across the country, students are feeling the pressure as they step into a workforce that’s increasingly competitive and challenging.

Elena Holder, a recent computer science graduate, is one of many who describe the job market as “really, really bad,” even though she’s fortunate enough to have secured a full-time offer. “I had to do two years of work to be eligible for an entry-level position, which is just not entry level at all,” she shared.

Similarly, Mele Buice, a graduate with a background in business, is navigating a tough job search. “It’s crazy because so many people are graduating without having jobs lined up. It’s not something I expected from a place with such a pre-professional environment,” she said. Some of Buice’s peers have found jobs in competitive fields like banking and consulting, but others are still struggling, applying and networking with little success.

The job market challenges aren’t limited to these two graduates. Many recent college grads are feeling disheartened despite having the skills and tools to land their ideal job.

The Unemployment Issue

A recent report from the Federal Reserve Bank of New York highlights a concerning trend: the unemployment rate for recent college graduates has risen to 5.8%, a full percentage point higher than the overall unemployment rate of 4%. This shift is unprecedented, as historically, college graduates were more likely to find employment than those without a degree.

Olivia Healy, a labor economics expert, explains that the supply of college graduates has never been higher, meaning the competition for entry-level roles is intense. Additionally, the rise of AI and the ongoing impact of the pandemic have created a challenging environment for those entering the workforce.

As Healy notes, there is a growing need for higher education to adapt to the changing landscape. “There has been a shift from a focus on liberal arts to more professional preparation,” she said, pointing to the increasing popularity of degree programs that include on-the-job training.

The Underemployment Problem

Underemployment—when graduates end up in jobs that don’t require a degree—has also risen, with 41.2% of recent grads now in such positions. While this can reflect a mismatch between the skills required for certain roles and what education provides, Healy sees it as less of a concern for those who are using part-time work to gain experience in a new field. However, for others, underemployment can be a frustrating reality.

Healy suggests that addressing underemployment may require large-scale intervention and policy changes to increase job opportunities for recent grads and bridge the gap between education and industry needs.

A Ray of Hope

While the national job market presents challenges, there are bright spots. For instance, a report from myFutureNC found that eight out of ten college graduates in the state have skills that align with available job listings. Though this varies by region, it offers hope for many students who are able to find work in their field.

Healy has also seen success among her students, noting that success often hinges on more than just having a college degree. “It’s not just about the degree; it’s about making connections, building interview skills, and having a plan for further training or graduate school that sets students apart,” she said.

While the road ahead may be tough, these graduates are resilient, finding ways to make their way into the workforce and carve out their future.