For the first time in recent history, young college graduates are experiencing rising unemployment rates at a faster pace than their peers without college degrees, according to a sobering new report from the Burning Glass Institute, a nonprofit workforce research organization.
The report, titled “No Country for Young Grads,” highlights troubling trends for bachelor’s degree holders entering the workforce in the post-pandemic era and amid the growing integration of artificial intelligence (AI) in the workplace.
Among the most alarming findings: 52% of the Class of 2023 were working in jobs that did not require a college degree just one year after graduation. Simultaneously, unemployment among young degree holders—those ages 20 to 24—has climbed by a full percentage point since the late 2010s. In contrast, unemployment has remained steady for high school graduates and associate degree holders in academic fields and has actually declined for those with career-focused associate degrees.
“Young grads are losing the edge that a bachelor’s degree used to provide in the job market,” said Matt Sigelman, president of the Burning Glass Institute and co-author of the report. “This isn’t about a weak economy—this is structural.”
The report also shows that layoff rates among young college graduates have nearly double since before the COVID-19 pandemic. These shifts, researchers argue, are not tied to a broader economic downturn. Instead, they reflect deeper changes in employer behavior and the nature of entry-level work.
The rise of AI is also displacing many of the tasks traditionally assigned to early-career workers. As automation takes over data analysis, administrative tasks, and even aspects of customer service, there are fewer roles left that require minimal experience but still offer professional growth.
Compounding the issue is a growing reluctance among employers to invest in training new workers. Sigelman said this mindset shift began during the pandemic, when companies were forced to operate with leaner teams—and discovered they could often do so effectively.
“Companies have learned they can function with fewer employees, and now they’re hiring accordingly,” he said. “They’re favoring experienced hires who can hit the ground running.”
The findings call into question long-held assumptions about the value of a college degree, particularly in the early stages of a career. As more graduates find themselves underemployed or unemployed, experts warn of the long-term consequences on earning potential, job satisfaction, and economic mobility.
Burning Glass researchers say the solution may lie in rethinking higher education and workforce development strategies—placing greater emphasis on real-world experience, internships, and skills-based hiring. It may also require employers to revisit their expectations for early-career workers and reinvest in onboarding and training programs.
“The bachelor’s degree still matters—but we can’t assume it’s enough,” Sigelman said. “We have to bridge the gap between education and employment more intentionally.”
The report adds to growing concerns about generational inequality in the labor market, and signals that without intervention, today’s young grads could be facing a prolonged and uncertain path to stable, fulfilling careers.