Despite years of college, Gen Z graduates are now facing the same problem as people without degrees
Recent data from the Bureau of Labor Statistics shows that unemployment rates for recent graduates and those without college degrees were equal in March.
Despite the similar jobless rates, those with degrees saw higher earnings on average.
College graduates are supposed to outpace their less-educated peers in the job market, but new federal data shows Gen Z grads may not be much better off than Americans who never earned a high school diploma.
The trend appears to lend weight to worries about employment voiced by current college students.
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According to March 2025 figures from the Bureau of Labor Statistics that were compiled by the Federal Reserve, recent college graduates aged 22–27 faced a 5.8% unemployment rate—the exact same rate as Americans over 25 who have less than a high school diploma. The numbers call into question the long-standing assumption that a college degree guarantees job security.
In contrast, the unemployment rate for all college graduates, including older and more established workers, remains significantly lower at 2.7%. The national unemployment average for all workers was 4.0%.
The gap between recent and all graduates highlights the growing disadvantage faced by young Americans entering a job market shaped by automation, remote work, and political instability.
College students who spoke with Campus Reform this month voiced concerns about potential roadblocks to employment after graduation. Students cited the proliferation of artificial intelligence and other factors as difficulties endangering job opportunities.
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Despite similar jobless rates among young grads and the least educated Americans, college graduates are still earning more on average.
In 2024, the median wage for a recent bachelor’s degree holder was $60,000, compared to $40,000 for a high school diploma holder. However, even within the college graduate category, earnings vary widely: from $43,000 at the 25th percentile to $80,000 at the 75th percentile.
The findings raise questions about the return on investment for today’s college students, especially as universities continue to hike tuition and pour funding into non-academic programming like DEI initiatives.