Unemployment Rises Among Young College Grads

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While the overall economy is booming, with the Dow Jones Industrial Average crossing 50,000, new data shows that unemployment among college graduates aged 22 to 27 has risen to 5.6%, roughly the same level as during the 2009 financial crisis. This disparity highlights a tale of two labor markets, with older and less educated workers finding more success than young college graduates whose skills and experience are not aligning with employers' current needs.

Why it matters

The rising unemployment among young college graduates is a concerning trend that suggests a mismatch between the skills and experience of recent graduates and the needs of employers in the current economy. This could have long-term implications for the career prospects and earning potential of young workers as they enter the job market.

The details

According to data from the New York Federal Reserve Bank, unemployment among college graduates aged 22 to 27 rose to 5.6% in December 2025, roughly the same level as during the 2009 financial crisis. This is in contrast to declining unemployment for college non-graduates and a slight uptick for older college graduates, who are still faring better than the younger cohort on average.

• The unemployment rate for college graduates aged 22 to 27 rose to 5.6% in December 2025.
• In February 2009, during the financial panic, the unemployment rate for this age group was also around 5.6%.