New U.S. college grads now have higher unemployment than the average worker

Recent college graduates now face higher unemployment than the average U.S. worker—the widest gap on record—despite overall economic health, a trend that began in early 2019 and predates both the pandemic and AI boom. Economists debate the cause, with the New York Fed attributing it primarily to remote work limiting mentorship opportunities for inexperienced hires, while Stanford researchers point to AI's impact on early-career employment, particularly in tech fields. Additionally, about 41% of employed new graduates are underemployed in roles that don't require a degree.