College Graduate Unemployment Holds Steady at 5.6% in March

Unemployment Rate for Recent Graduates#

In March, the unemployment rate for recent college graduates stayed at 5.6%, the same as in December. This statistic comes from the Federal Reserve Bank of New York and specifically applies to Americans aged 22 to 27 who hold bachelor's degrees.

Underemployment Rates#

The underemployment rate, which includes those working in jobs that do not require a degree or are part-time when they want full-time work, has seen a slight improvement. It dropped to 41.5% in the first quarter of 2026, indicating that while many graduates are employed, a significant number are not fully utilizing their education.

Unemployment for Non-Degree Holders#

For young workers in the same age group without four-year degrees, the unemployment rate decreased from 7.7% to 7.2%. This decline suggests that job opportunities may be improving for those without a college degree, although they still face higher unemployment rates compared to their degree-holding peers.

Challenges in the Labor Market#

Despite these numbers, the New York Fed noted that the labor market remains tough for recent college graduates. They have been particularly affected by the current economic conditions. Additionally, entry-level jobs are increasingly competitive as companies adopt artificial intelligence (AI) technologies, which can change the nature of available positions and the skills required.