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Recent college graduates are facing a labor-market setback that marks a notable change in the history of available data. For the first time since the New York Federal Reserve began tracking the figures in 1990, this group is more likely to be unemployed than American workers overall.

Graduate unemployment remains above pre-pandemic levels

Unemployment among recent college graduates held at about 5.6% this year. That compares with a rate below 4% before the pandemic, showing that joblessness for this group remains elevated relative to its earlier level.

The comparison with the broader workforce is the most significant feature of the data. College graduates have traditionally occupied a distinct position in the labor market, but the latest figures show recent graduates experiencing a higher unemployment rate than American workers generally.

Why the data matter

The New York Fed's long-running series provides context for the shift. Because the current pattern has not appeared since tracking began in 1990, it represents an unusual change in the relationship between recent graduates and the overall workforce.

The figures identify the scale and timing of the change but do not establish why unemployment among recent graduates has risen. They do, however, show that entering the workforce remains more difficult for this group than it was before the pandemic.

For now, the latest data point to a weaker employment position for recent college graduates and a reversal in a pattern monitored by the New York Fed for more than three decades.