This story was originally published on MyNorthwest.com.
According to a new study from the Burning Glass Institute, the unemployment rate for recent college graduates is nearly equal to that of those with only a high school diploma.
It’s the closest the two groups have been in terms of unemployment rates in 30 years, as the unemployment rates for recent college graduates have reached their highest point in decades.
Recent college graduates were defined as individuals between the ages of 22 and 27 who hold a college degree.
“Employers are increasingly skipping over new graduates and reserving even ‘entry-level’ jobs for candidates with three or more years of experience,” the study read.
The study revealed that, for 2023’s college graduating class, 52% were underemployed one year after graduation. Underemployment is defined as working in jobs that don’t require a degree.
Additionally, for recent graduates who did land a job in their respective field, layoffs have nearly doubled since before the pandemic.
Growth in AI a direct impact on employment
The study found that automation is changing entry-level roles, with artificial intelligence (AI) often eliminating those jobs altogether.
“Entry-level jobs once gave new hires the chance to build skills through foundational tasks like research, drafting, and analysis,” the study read. “Today, many of those tasks are handled by AI tools, eliminating opportunities for on-the-job learning. 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.”
While the number of working-age people is projected to remain relatively stable over the next decade, the number of college graduates is expected to continue increasing. The study cited that, by 2034, there could be 7–11 million more graduates competing for entry-level or similar jobs.
“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,” the study read.
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