The New York Federal Reserve Bank has analyzed the unemployment rates of recent college graduates (defined as individuals aged 22 to 27 with a bachelor’s degree or higher) and categorized them by their field of study. The analysis utilized data from the 2023 American Community Survey conducted by the U.S. Census Bureau, covering 73 different professions and disciplines. The results indicated that in 2023, the unemployment rates for recent graduates in fields such as anthropology, physics, and computer engineering were particularly high.
According to a report by Business Insider on July 1st, the unemployment rates in 28 professions were higher than the overall unemployment rate of recent graduates by 3.6%. The types of professions with the highest unemployment rates varied, with some being related to arts, technology, or science.
Recent graduates in anthropology had the highest unemployment rate at 9.4%, followed by physics at 7.8%. However, the unemployment rates for recent graduates in computer engineering and computer science were also notably high. Despite this, graduates in these two computer-related fields were more likely to secure jobs that typically require a degree. The median starting salary for these graduates was also among the highest, matching that of chemical engineering at $80,000, while the median mid-career salary reached six figures.
Daniel Zhao, the Chief Economist at job search platform Glassdoor, told Business Insider that computer science and engineering professions remain attractive as they have the potential for high salaries.
The job outlook for graduates in the STEM fields is mixed. While the unemployment rates for physics and chemistry graduates are relatively high, the unemployment rate for earth sciences is only at 1.5%. Biology graduates had a 3% unemployment rate, lower than the overall unemployment rate.
“For pure science fields, the types of jobs available are often more limited compared to some engineering fields,” Zhao stated. He added that science jobs often rely on funding from the federal government.
The top 15 college majors with the highest unemployment rates are as follows: anthropology (9.4%), physics (7.8%), computer engineering (7.5%), commercial art and graphic design (7.2%), fine arts (7.0%), sociology (6.7%), chemistry (6.1%), computer science (6.1%), information systems and management (5.6%), public policy and law (5.5%), humanities (5.3%), other technology (5.0%), English language (4.9%), economics (4.9%).
Despite the strong overall job market in the United States, as seen in the June non-farm payroll report exceeding expectations with an addition of 147,000 jobs and an unexpected drop in the unemployment rate to 4.1%, recent graduates may still face challenges in job hunting depending on the positions they apply for.
Economists suggest that the root of the problem lies in a general slowdown in hiring. While this hasn’t significantly affected those already employed due to consistently low layoff numbers, it has made it more difficult for job seekers, particularly recent graduates seeking their first formal employment, to find jobs.
Recruitment data on job search platform Indeed shows a recent increase in software development industry openings, albeit still far below 2022 levels and even lower than pre-pandemic numbers in February 2020. Hiring in the research and development sector has also slowed compared to its peak in March 2022.
“The job market in the tech industry has been relatively weak for entry-level employees because many tech companies have slowed down hiring, and some have even started layoffs,” Zhao remarked.
Cory Stahle, an economist at Indeed, told The Wall Street Journal, “Companies are being conservative, posing a challenge for young job seekers entering the labor force for the first time.” He noted that as employers become more cautious in recruitment, they are less willing to take a chance on applicants who may not have strong resumes or skills.
On July 2nd, Microsoft confirmed a global layoff of around 9,000 employees, marking the company’s largest workforce reduction since 2023.
In a report released in April, the New York Federal Reserve Bank stated that the labor market conditions for recent college graduates in the first quarter of the year had “significantly worsened.” The Federal Reserve Bank found that in the first quarter of the year, the average unemployment rate for graduates aged 22 to 27 was 5.8%.
According to Business Insider, Zhao advised recent graduates currently seeking employment to leverage their network, including alumni and family connections, and research which companies are still actively hiring.