Gen Z Job Market Trends: Data Reveals College Graduate Unemployment Rate Is on the Rise
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A college degree has long been seen as the ticket to better pay, career stability, and increased employment opportunities. But for today’s graduates, that promise is slipping away.
Research from the Burning Glass Institute found that unemployment rates for recent college graduates (ages 22–27) have climbed to their highest level in decades.
The gap between degree holders and workers with only a high school diploma is now the smallest it’s been in 30 years. This isn’t just about a weak economy; it’s a structural shift.
Employers are increasingly skipping over new graduates and reserving even “entry-level” jobs for candidates with three or more years of experience.
Key Findings
For years, higher education offered a clear economic edge, but that edge is fading fast. Here are a few key findings about entry-level roles and the recent graduate job market:
- Unemployment among young bachelor’s degree holders has risen sharply, closing in on rates for workers with a high school diploma, the narrowest margin in three decades.
- The steepest increases are in fields that once offered steady entry points for recent graduates, such as tech, business operations, and finance.
Underemployment Is Widespread
Even when young graduates find work, it often doesn’t match their qualifications:
- For the Class of 2023, 52% were underemployed one year after graduation, working in jobs that didn’t require a degree.
- The underemployment rate for college graduates is even rising in fields like engineering, where more than one in four graduates were underemployed.
Why it matters: Working outside one’s field early on can trap graduates in roles with lower pay and fewer advancement opportunities, delaying skill growth and career progression for years.
Layoff Risk Is Rising for Young Grads
Job stability is becoming harder to find for new degree holders:
- Layoffs among recent graduates have nearly doubled since before the pandemic.
- In AI-exposed sectors like tech and finance, layoff rates for young grads are higher than for older degree holders.
Why it matters: Job loss early in a career can create long-term setbacks, from resume gaps to stalled professional growth, making re-entry into a competitive job market even more difficult.
Entry-Level Postings Are Disappearing in AI-Exposed Fields
Are entry-level jobs disappearing? The data shows that the first step on the career ladder is vanishing in some of the fastest-growing industries.
Here’s how entry-level share has dropped between 2018 and 2024:
- Software development: 43% to 28%
- Data analysis: 35% to 22%
- Consulting: 41% to 26%
Total postings in these sectors stayed flat or increased, but senior-level jobs held steady, pointing to a shift in hiring preferences, not a freeze.
Why it matters: Without these early-career openings, graduates lose the chance to gain hands-on experience. The traditional “learn by doing” model is breaking down, leaving fewer pathways into skilled professions.
AI Is Automating the Learning Curve
Automation is changing what early-career jobs look like, and often eliminating them.
Entry-level jobs once gave new hires the chance to build skills through foundational tasks like research, drafting, and analysis. Today, many of those tasks are handled by AI tools, eliminating opportunities for on-the-job learning.
Why it matters: If graduates are expected to enter the workforce fully trained, many will struggle to meet the heightened skill requirements, thereby widening the gap between education and employment.
The Bigger Picture
The hiring challenges facing new graduates aren’t a temporary downturn; they’re part of a longer-term shift in the labor market.
The number of working-age Americans is projected to remain stable over the next decade, while the number of college-educated adults is expected to continue rising. By 2034, there could be 7–11 million more graduates competing for fewer degree-relevant roles.
Without structural changes to hiring, training, and career readiness, underemployment could become the default outcome for new grads, undermining career mobility, lifetime earnings, and the long-term health of the white-collar workforce.
For press inquiries, contact Nathan Barber at nathan.barber@bold.com.
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Gen Z Job Market Trends: Data Reveals College Graduate Unemployment Rate Is on the Rise
Jasmine is certified career coach and recognized expert in job search strategy. She is committed to helping job seekers navigate the job market and succeed in their careers.
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