The jobless rate for recent college graduates held steady at 5.6% in March, equal to the December reading, the Federal Reserve Bank of New York reported. The statistic applies to Americans aged 22 to 27 who have earned bachelor’s degrees.
Alongside the unchanged unemployment figure, the New York Fed recorded a decline in the underemployment rate for this cohort, which fell to 41.5% in the first quarter of 2026. Underemployment remained high even as it moved downward, according to the same report.
For workers in the same 22-to-27 age bracket without four-year degrees, the unemployment rate eased to 7.2% in the first quarter from 7.7% over the same period. The New York Fed framed these readings as part of a labor market that continued to present difficulties for recent college graduates at the start of 2026.
The report singled out young degree-holders as among the hardest-hit groups in the current labor market. It noted particular strain on entry-level positions, attributing growing pressure on those roles to companies' moves to incorporate artificial intelligence into workflows.
Those findings underscore a dual trend captured by the New York Fed: while raw unemployment for recent college graduates did not rise in March, measures of underemployment and the broader experience of early-career workers point to persistent challenges. The decline in underemployment to 41.5% signals some improvement in how graduates are matched to work, even as the category remains elevated.
Similarly, the reduction in unemployment for non-degree holders in the same age range, from 7.7% to 7.2%, indicates modest easing for that group, though the New York Fed's assessment emphasizes that conditions for recent graduates overall stayed difficult as 2026 began.
Because the report links pressures on entry-level hiring to the adoption of AI in company processes, the New York Fed highlighted a specific factor shaping opportunities for early-career workers. Beyond the numerical snapshots, the institution's commentary stresses that labor market dynamics at the entry level are being altered as firms integrate new technologies into their workflows.
Clear summary
Unemployment for Americans aged 22 to 27 with bachelor’s degrees remained at 5.6% in March, matching December. Underemployment for that group declined to 41.5% in Q1 2026. Unemployment among similarly aged workers without four-year degrees fell to 7.2% from 7.7%. The New York Fed described labor market conditions for recent college graduates as challenging and noted that entry-level roles face pressure from companies adopting artificial intelligence in workflows.