-
Unemployment rate for recent college graduates have jumped in recent data, with the percentage for those who hold a bachelor’s degree, rising to 6.1% – and even higher for those with advanced degrees or some college, but without a degree – is controlled by a national percentage of 4.2%. This can strengthen the argument of the best CEOs such as Jamie Dimon, Ted Decker and John Ferner, who called on young people and employers to prioritize the skills ready for work and alternative career paths at traditional colleges.
Graduates choose to attend a college instead of heading directly to the workforce for a number of reasons, whether they are further learning in a specific field or acquire the qualifications needed for a specific role. But their motives often come down to one thing: landing a career in the profession of their choice.
In 2025, these dreams seem to be equal.
According to the latest data published by the Federal Reserve Bank of St. Louis (Fred), the unemployment rate for graduates with bachelor’s degree was 6.1% in May – from 4.4% just a month before.
Similarly, the unemployment rate for those aged 20 to 24 with some college experience, but without a degree as those of the same age demographic with a master’s or higher, jumped last month.
Fred reports that Gen Z with a master or higher now has an unemployment rate of 7.2%, while those with some college experience have unemployment of 9.4%.
According to the analysis of Wall Street JournalThis picture is even more terrible. Citing micro data from the Labor Department, Wsj Estimates’ graduates have an unemployment rate of 6.6% in the last 12 months ending in May, the highest level for a decade except for the pandemic spike.
This tendency to increase unemployment is contrary to the photo of the rest of the United States, where unemployment was stable to 4.2% from April to May, raised only a little of the percent 12 months ago.
Then it may not be a surprise that the graduates who do jobs tend to stay in them, for fear of getting into a stagnant market. Meanwhile, cities that have not played a role is difficult to reach the career ladder.
As Oxford Economics researchers reflect in a survey last month: “Those in the professional, scientific and technical services are less likely than their peers to seek a job in a different industry, although they are more likely to accept insufficient employment -the same as a workman as a graduate college, which is more worked at work -The high. “
In fact, although some young potential employees are ready to take the steps aside to earn incomes, analysts have suggested that Gen Z Grad have more time than most: “The result is that the level of unemployment for recent colleges will remain in the near future, without the growth of technology companies or the mass companies.
“While these workers represent only about 5% of the workforce, they played a huge role in pushing national unemployment higher.”
Alternative routes
It can be argued that the data suggest that employers do not find the necessary skills in the new cities, despite the tens of thousands of dollars that many will branch to achieve their degrees.
JPMORGAN Chase CEO Jamie Dimon, for example, insisted on education reform to rank colleges based on whether his students are grounding jobs, unlike how many of them end.
“If you look at the kids, they need to be educated to get a job. Too much focus in education is on the graduating college … It has to be at work. I think schools have to be measured, are the children out and got a good job?” Dimon told Indianapolis-based Wish-TV last year.
The idea that the college is the only way to hire a well-paid job is also inaccurate, he added, saying that 17-year-old bank crates can take at home $ 40,000 a year “And if you accidentally have a family at 18 or whatever you get $ 20,000 for $ 60. 000 dollars.
Dimon, a Wall Street veteran, also claims that teachers should focus on the skills that will last for people for the rest of their lives as eating and financial literacy.
The head of the JPMorgan Chase is not alone. In a Wsj Last year, entitled “Not Everyone Needs College”, Home Depot CEO and Walmart US, Ted Decker and John Ferner, writes: “Young people have been said to be a college degree in decades … While college is a useful way to prosperity, it’s not the only one.”
They added: “The American Dream is not dead, but the path to reach it may seem different to job seekers today than for their parents. We owe it to the younger generations to open their minds to the different opportunities that workers need to learn new skills and achieve their dreams.”
This story was originally presented on Fortune.com