The most underemployed college degrees in the US: Here's why graduates struggle to find relevant jobs

Many recent college graduates in the US are facing significant challenges in finding jobs that match their qualifications. Data from the Federal Reserve Bank of New York reveals that underemployment rates—where graduates work in jobs that typically do not require a college degree—remain high across numerous majors. This suggests a disconnect between the education system and the current job market demands.

According to the Federal Reserve Bank’s January 2025 report, the average underemployment rate for new graduates nationwide stands at 38.3%. However, some majors experience rates far above this average, signalling deeper structural issues in certain fields of study.

Crucial data on underemployment by major
The highest underemployment rates belong to graduates in Criminal Justice (67.2%), followed closely by Performing Arts (62.3%) and Medical Technicians (57.9%). These figures indicate that more than half of the graduates in these fields are employed in roles that do not require their college qualifications. The report attributes this, in part, to the nature of the professions; for example, many law enforcement and private security roles do not require a degree, and specialised positions such as those in the CIA or FBI require extensive professional experience.

Other majors with notably high underemployment include Anthropology (56.5%), Leisure & Hospitality (55.9%), Sociology (54.5%), and General Social Sciences (54.4%). The table below shows a detailed breakdown of underemployment rates across various majors:

Major Underemployment Rate Major Underemployment Rate
Source: Federal Reserve Bank of New York. Data as of January 2025
Underemployed is the share of graduates working in jobs that typically don't require a college degree.

Why some degrees face higher underemployment
The Federal Reserve Bank’s data highlights several reasons behind these high rates. For Criminal Justice graduates, many jobs such as law enforcement or private security do not require a college degree. "Landing positions in agencies like the FBI or CIA is highly competitive and requires extensive experience," the report states.

Similarly, Medical Technicians have an underemployment rate of 57.9%. Many technical roles in healthcare, such as cardiovascular technicians, require only associate degrees, limiting opportunities for those with bachelor’s qualifications.

General Business degrees have a 52.8% underemployment rate, which is considerably higher than specialised fields such as Accounting (17.9%), Mathematics (24.3%), and Business Analytics (27.2%). This suggests the labour market demands more specialised skills within the business sector.

Fields with lower underemployment rates
Among graduates, nursing stands out with the lowest underemployment rate at 9.7%, reflecting strong demand for qualified healthcare professionals. The data also shows degrees in STEM-related areas like Engineering Technologies and Chemistry tend to have underemployment rates closer to or below the national average.

The Federal Reserve Bank of New York’s report paints a detailed picture of the current employment landscape for college graduates. It emphasises the importance of aligning education with labour market needs as underemployment continues to affect more than one in three graduates nationwide.