It has been the prevailing belief for decades that a college degree is the key to career and financial success in the United States. Statistics continue to support this, indicating that college graduates are more likely to land high-paying jobs compared to those without a degree. However, the decision to pursue higher education is becoming more complex due to rising tuition costs, escalating student loan debt, and concerns over job placement after graduation.
In 2025, college graduate unemployment and underemployment remain critical issues, especially in the U.S. Over 50% of new graduates still end up in jobs that don’t require a degree, often remaining in such roles for several years. Racial disparities also persist, with African American graduates facing higher unemployment rates than their White counterparts.
How Many College Graduates Are Unemployed in 2025?
As of July 2025, the unemployment rate for individuals aged 22-27 with a recent bachelor’s degree was 4.8%, while the overall unemployment rate for all workers with a bachelor’s degree or higher was 2.7%. Meanwhile, those aged 22-27 without a bachelor’s degree faced a 7.4% unemployment rate. This highlights the continued advantage of holding a college degree, though recent graduates are increasingly struggling to find degree-appropriate roles.
According to a recent study by the New York Federal Reserve, about 41% of recent graduates are underemployed in their first jobs in 2025, meaning they are either overqualified or underpaid for the positions they occupy.
Quick Facts About Graduate Unemployment in 2025
- Average wage premium: Bachelor’s degree holders earn about 77% more than high school graduates.
- Recent graduates unemployment (aged 22-27): 4.8%
- Underemployment rate among new grads: 41%
- Overall unemployment rate for all college grads: 2.7%
- Unemployment rate for associate degree holders: 3.5%
- Unemployment rate for high school graduates (no college): 4.3%
Unemployment Rates by Year
U.S. Bureau of Labor Statistics Data for Bachelor’s Degree or Higher:
- 2020, January: 2.0%
- 2021, January: 3.8%
- 2022, January: 2.4%
- 2023, January: 2.0%
- 2024, January: 2.3%
- 2025, January: 2.6%
High School Diploma vs. Bachelor’s Degree: Unemployment Rates
- 2025, January:
- High school diploma: 4.3%
- Bachelor’s degree and above: 2.6%
- 2025, June:
- High school diploma: 4.5%
- Bachelor’s degree and above: 2.7%
Demographic Breakdown (2025)
By Sex:
- Male graduates: 2.6% unemployment
- Female graduates: 2.8% unemployment
By Race:
- Caucasian: 2.5%
- African American: 3.4%
- Hispanic/Latino: 3.1%
- Asian American: 2.6%
By Age (All Education Levels):
- 20-24 years: 8.2%
- 25-54 years: 3.9%
- 55+ years: 3.2%
Employment by Major: Highest and Lowest Unemployment Rates in 2025
Highest Unemployment Majors:
- Mass Media: 7.8% unemployment, 55.2% underemployment
- Liberal Arts: 6.7% unemployment, 58.4% underemployment
- Anthropology: 6.6% unemployment, 59.1% underemployment
- Philosophy: 6.2% unemployment, 50.9% underemployment
- Construction Services: 6.1% unemployment, 34.0% underemployment
Lowest Unemployment Majors:
- Theology & Religion: 1.0% unemployment, 46.9% underemployment
- Medical Technician: 1.0% unemployment, 50.9% underemployment
- General Education: 1.7% unemployment, 47.4% underemployment
- Public Policy & Logic: 1.7% unemployment, 62.8% underemployment
- Civil Engineering: 1.9% unemployment
Job Search Duration & Employment Rate
- Average time to first job: 6 months post-graduation
- Employment rate among bachelor’s graduates (aged 22-27): 76%
Wage Comparison by Education (2025)
- High school diploma: $749/week
- Associate’s degree: $874/week
- Bachelor’s degree: $1,281/week
- Advanced degree: $1,559/week
Conclusion
Despite the ongoing challenges, a college education still offers a pathway to higher income and lower unemployment. In 2025, the data continues to affirm the long-term value of a degree, even as recent graduates face a competitive and shifting job market. Factors like major, race, and field of study heavily influence outcomes, making it crucial for students to consider employability alongside academic interests.
Sources:
- U.S. Bureau of Labor Statistics
- Federal Reserve Bank of New York
- NCES (National Center for Education Statistics)
- https://www.newyorkfed.org/research/college-labor-market#–:explore:unemployment