Recent Graduate Underemployment Holds Near 41.5% Despite Steady Hiring, Fed Data Shows

Recent Graduate Underemployment Holds Near 41.5% Despite Steady Hiring, Fed Data Shows

NEW YORK — Roughly 41.5% of recent US college graduates were underemployed — working in roles that don't typically require a bachelor's degree — in the first quarter of 2026, according to Federal Reserve Bank of New York data. The unemployment rate for graduates aged 22 to 27 stood near 5.7%, above the national average.

The figures mark a modest improvement in underemployment from late 2025 highs, even as unemployment for this group has climbed steadily since 2023. Outcomes vary sharply by field: graduates in engineering, nursing, and computer science continue to see stronger placement and earnings, while humanities and social sciences graduates report more volatile results.

Entry-level job postings have also declined on major recruiting platforms even as applications per posting have risen sharply, reflecting a tighter, more competitive market for new graduates despite modestly improved overall hiring forecasts for the Class of 2026.