College graduates face tough 2026 job market but degree value holds

A Vox article reports that while the job market for new college graduates in 2026 is difficult, the long-term value of a college degree remains strong. Recent graduates ages 22 to 27 had an unemployment rate of about 5.7 percent in early 2026, above the national average of 4.3 percent. Hiring has slowed to the lowest rate outside the pandemic since 2014, and entry-level postings have fallen roughly 35 percent over the past 18 months. However, a Federal Reserve Bank of New York study in 2025 found a median return on investment in a college degree of 12.5 percent after accounting for costs. College graduates in recent years earned a median of around $80,000 a year, compared to around $47,000 for high school graduates. A 2026 Gallup poll found about 80 percent of bachelor’s graduates call their degree critical or important to their careers, and 71 percent said they landed a good job within six months. The article notes that previous graduating classes, such as those in 2001 and 2010, faced worse unemployment rates but saw their earnings recover over time.

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Sources: vox.com