42% of America’s recent college grads are working jobs that don’t need a degree. From Kathmandu to Paris, young people are taking to the streets
The New York Fed data measures "underemployment." One historian calls this “elite overproduction” — a final stage before social upheaval.
42% of recent college graduates in the United States are working jobs that do not require a bachelor's degree. This underemployment rate rose from 41.8% in May to 42% in June, then dropped slightly to 41.9% in November 2025. The unemployment rate for recent grads is now at 5.7%, significantly higher than the 4.1% rate for all workers. This trend of underemployment and high unemployment began in 1990 and continued until 2018, with recent graduates being more likely to be unemployed than the average worker.
While some college majors fare better than others, criminal justice graduates have the highest underemployment rate at 65.8%, followed by performing arts at 63.9% and fine arts at 58.9%. Computer engineering and computer science majors have jobless rates of 7.8% and 7%, respectively, while education majors have the lowest rates of unemployment, with special education at 0.7% and elementary education at 1.2%. Nursing graduates have a jobless rate of 2.1%.
Political scientists and economists warn that the overproduction of university degrees leads to a phenomenon known as "elite overproduction." This occurs when a society produces more people aspiring to elite status than there are elite positions available. Historically, this situation has resulted in sociopolitical instability, as seen in countries like Nepal and India, where frustrated youth have taken to the streets in protest.
In France and other European countries, students have also taken to the streets due to a lack of university places and increased living costs. The U.S. is experiencing a similar situation, with young people demanding more university places and questioning the value of their degrees in a job market that is increasingly favoring experienced older workers over entry-level hires.
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