Young College Grad Unemployment Hits 12-Year High Amid AI, Tariff Concerns

Young college graduates aged 22 to 27 are facing the highest unemployment rates in over a decade, surpassing the national average, due in part to economic uncertainties from tariff increases and the growing impact of artificial intelligence replacing entry-level white-collar jobs. This challenging job market has led many in Generation Z to shift away from traditional white-collar careers toward blue-collar and skilled trade jobs, which are seen as more resilient to automation and offer greater flexibility and independence. A significant portion of recent graduates report that their degrees have not led to careers in their field or sufficient earnings, prompting reconsideration of the value of a college degree. Additionally, recent graduates are struggling more than those from previous years to secure employment before finishing their studies, increasingly relying on LinkedIn and social media platforms for job searching. Economists and Federal Reserve officials express concern that these trends may be early indicators of broader economic issues. Despite these challenges, holding a college degree still correlates with higher pay and lower long-term unemployment rates compared to non-degree holders.