In North Carolina, recent college graduates are facing a challenging labor market. The Labor & Economic Analysis Division (LEAD) of the NC Department of Commerce reports that while college is generally a good investment, graduates are finding it difficult to secure employment due to technological changes and fluctuations in the post-COVID economy.
Media outlets have highlighted these difficulties. CBS News notes a “rising number of college grads are unemployed,” while the Wall Street Journal describes it as an “employment crisis.” Forbes questions whether “entry-level jobs [are] going away.”
Despite a national unemployment rate below 5%, hiring rates are at their lowest in over a decade. Federal Reserve Chair Jerome Powell called current labor market conditions “solid,” but for new graduates, securing jobs has become more challenging.
Data from NC TOWER indicates that recent graduates from North Carolina’s state university system experienced a pay cut, with the class of 2023 earning a median of $32,000 in their first year compared to $34,000 for the class of 2022. This represents the second-largest decline on record outside a recession.
Earnings for graduates with Computer & Information Sciences majors dropped by 22% as tech companies reduced headcounts after COVID-era expansions. Conversely, health-related majors saw wage growth due to increased demand for healthcare services.
The root cause of these challenges remains debated. They could be cyclical or structural, reflecting either temporary economic cycles or permanent shifts like reduced demand for college-educated workers due to technological advancements such as artificial intelligence.
Despite these challenges, obtaining a bachelor’s degree remains important for accessing high-paying jobs in North Carolina. As employer needs evolve, so might the value placed on different degrees and majors.
Questions about whether AI is impacting job availability for recent graduates remain open as experts continue to study North Carolina’s changing labor market landscape.
For further information or inquiries, contact Meihui Bodane at mbodane@commerce.nc.gov.
