This story originally aired on “Marketplace Morning Report” on Nov. 20, 2024
The labor market got a little weaker for recent college graduates in the third quarter of 2024, according to new data from the New York Fed. College grads are faring better — but not a whole lot better — than young workers without college degrees, unlike what we’ve seen historically.
At 5.3%, the unemployment rate for young university graduates is at its highest in around three years, said New York Fed economist Richard Deitz.
"Recent college graduates are having a little bit of a tougher time in the labor market recently than they've had in quite a while," Deitz said.
That’s as the labor market is pretty solid overall, which has benefited young workers without bachelors degrees. Alí Bustamante, an economist at the University of New Orleans and director of Worker Power and Economic Security at the Roosevelt Institute, said college degrees carry less of an employment benefit than they have before.
"There was once upon a time a college degree really meant a huge improvement in your employment opportunities and your wage," Bustamante said.
Still, overall, college graduates fare better than people who don’t finish school — especially in the long term.
"The college degree has benefits over your entire life. Where are you going to be three years, five years from now?" Deitz said.
He said for the average person with a college degree it’s clear: the long-term economic benefits still outweigh the costs.
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