For years, young people were told that college was the key to success. Get the degree, get the job, live the dream. Sadly, that old idea is rapidly collapsing. You see, a new report from the Burning Glass Institute, highlighted by MyPerfectResume, shows unemployment among college-educated Gen Z workers climbing to its highest level in decades, almost identical to those who never went to college.
The degree advantage that once separated graduates from non-graduates is fading fast. More than half of the Class of 2023 were underemployed within a year, stuck in jobs that don’t need a degree. Even engineering majors are feeling the squeeze, with roughly one in four working outside their field. For many, the return on their expensive education has never felt smaller.
AI isn’t just part of the story, folks… it’s driving it. Entry-level jobs that once helped graduates gain experience are disappearing as AI tools like ChatGPT now perform the research, analysis, and drafting work that used to train new hires. Employers are demanding three or more years of experience even for junior positions. In software development, the share of entry-level listings fell from 43 percent in 2018 to 28 percent in 2024, while data and consulting roles saw similar declines.
Companies haven’t stopped hiring, but they’re prioritizing experienced workers who can start strong with minimal training. That shift leaves new grads stranded in low-skill work, trying to climb a ladder that’s missing its first rung. “We’re watching the bottom rung of the ladder collapse,” said Jasmine Escalera, career expert at MyPerfectResume.
Looking ahead, the outlook isn’t much better. The number of college-educated Americans will continue to grow while degree-relevant jobs keep shrinking. By 2034, millions more grads will be chasing a limited number of suitable openings. For Gen Z, the challenge isn’t just finding work… it’s surviving in an economy where AI is taking over the jobs that once helped them get started.
