A rare reversal is unfolding in the U.S. labor market: young workers without college degrees are enjoying strong employment prospects, while college graduates face exceptional difficulty finding jobs—with the situation being even bleaker in specialized fields like technology. The displacement of entry-level white-collar roles by AI, combined with the rising number of college graduates, is reshaping the long-standing employment dynamic in the U.S. where higher educational attainment typically guaranteed easier job prospects.
Analysis by the labor market think tank Burning Glass Institute reveals that the unemployment rate for individuals aged 22 to 34 without a college degree has dropped to near-historic lows not seen in over two decades; conversely, for college graduates in the same age group, the employment climate has been worse than current levels only during the pandemic and the early recovery phase following the 2007–2009 financial crisis.