The unemployment rate for college graduates ages 22-27 has hit its highest level in 12 years, excluding the COVID-19 pandemic, and currently outpaces the overall U.S. rate of joblessness, according to the Wisconsin State Journal. The gap between the two is also larger than it has been in over 30 years.
The rise in unemployment could signal trouble for the economy and suggests that businesses are holding off on hiring new workers due to uncertainty stemming from the Trump administration’s tariff increases, which could stymie growth. The growth of artificial intelligence could also play a role, eroding positions for beginners in white-collar professions like information technology, law and finance.
The higher levels of unemployment for young graduates have also reawakened concerns regarding the value of a college degree, although economists agree that graduates generally earn higher pay and experience significantly less unemployment over their lifetimes.
