Recent US College Graduate Unemployment Surpasses National Average
Bank of America reports unemployment for recent college graduates has exceeded the national rate as AI and automation reduce entry-level job opportunities.
The unemployment rate for recent college graduates in the United States has surpassed the national average, reversing a trend that persisted for a decade. According to an analysis by the Bank of America Institute, the jobless rate for individuals aged 22 to 27 with at least a bachelor's degree outpaced the 4.2% national unemployment rate recorded in July 2025.
Data shows that more than 13% of unemployed Americans in July were first-time job seekers, the highest level recorded since 1988. Analysts attribute this shift to macroeconomic pressures, including global trade tensions and the increasing integration of automation and artificial intelligence, which are eroding traditional entry-level roles.
Complementary research from Goldman Sachs suggests that the safety premium typically associated with a college degree is disappearing. Additionally, a study from Stanford University indicates that AI is exerting a significant and disproportionate impact on workers entering the labor market.