The Federal Reserve Bank of New York recently published data on labor market outcomes of recent college graduates. Using interactive tools, the data allows for comparison of unemployment and underemployment rates of recent college graduates to other graduates, and individuals in the workforce without a college degree [1]. Underemployment is defined as college graduates working in jobs that do not require a college degree.
Key findings include:
- In December 2019, the unemployment rate for recent college graduates was 3.9%.
- This rate is lower than the unemployment rate for young workers without a college degree (6.5%) but higher than the general unemployment rate for college graduates between 22-65 years of age (2.2%)
- Recent college graduates had an underemployment rate of 41% in December 2019.
- This rate is higher than the general underemployment rate for college graduates between 22-65 years of age (34%).
- 36% of underemployed recent college graduates were employed in good non-college jobs (jobs with an annual full-time wage of $45,000 or more). This rate is lower than the rate for college graduates who are 22-65 years of age (43%).
- 13% of underemployed college graduates were employed in low-wage jobs (jobs with an annual wage of $25,000 or less). This rate is higher than the rate for college graduates between 22-65 years of age (8%).
[1] Recent college graduates are defined as individuals aged 22 to 27 with a bachelor’s degree or higher. Young workers are defined as 22- to 27-years old without a college degree.
