Key insights
- The unemployment rate for recent college graduates remained elevated at 5.6% in March, according to the NY Fed. Underemployment also remains high at 41.5%. The report suggests a challenging labor market for young degree-holders, potentially due to AI integration impacting entry-level positions. This could signal a future drag on consumer spending and economic growth, albeit a mild one.
Investing.com -- The jobless rate for recent college graduates held at 5.6% in March, matching the December level, data from the Federal Reserve Bank of New York showed Tuesday.
The rate applies to Americans aged 22 to 27 with bachelor’s degrees. The underemployment rate for this demographic dropped to 41.5% in the first quarter of 2026, the New York Fed said.
Unemployment for workers in the same age bracket without four-year degrees declined to 7.2% from 7.7% during the same period.
The New York Fed said labor market conditions remained challenging for recent college graduates at the start of 2026. Young degree-holders have been among the hardest-hit groups in the current labor market.
Entry-level positions have faced growing pressure as companies have moved to incorporate artificial intelligence into workflows.
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