42% of America's recent college grads are working jobs that don’t need a degree. From Kathmandu to Paris, young people are taking to the streets | Fortune
TITLE: Rising Underemployment and Global Youth Unrest Signal Economic Strain
Recent data from the Federal Reserve Bank of New York indicates that a significant portion of young Americans are struggling to find work that utilizes their college degrees. In June, approximately 42% of graduates between the ages of 22 and 27 were classified as underemployed, meaning they held positions that typically do not require a bachelor's degree. This figure represents a slight increase from the 41.8% recorded in May, though it remains below the 42.4% seen in November 2025 and the pandemic-era peak of 43.4% in October 2020.
Beyond underemployment, the jobless rate for this demographic is also a concern. In June, the unemployment rate for recent graduates reached 5.7%, which is notably higher than the 4.1% rate seen across the entire workforce. This trend marks a shift from historical norms; between 1990 and 2018, recent graduates only faced higher unemployment than the general population during eight specific months. However, they have consistently seen higher rates every month since January 2021. The disparity reached a record 1.8 percentage points in April 2025 and remains close to that level today.
Underemployment by College Major
The impact of these labor trends varies significantly depending on a student's field of study. According to 2024 Census data analyzed by the Fed, criminal justice majors faced the highest underemployment rate at 65.8%. They were followed by performing arts graduates at 63.9% and fine arts majors at 58.9%. In terms of total joblessness, computer engineering saw a 7.8% rate, while computer science hit 7%. Conversely, those in service-oriented fields fared better. Special education reported a mere 0.7% unemployment rate, elementary education stood at 1.2%, and nursing was recorded at 2.1%.
THE Theory of Elite Overproduction
Peter Turchin, a professor emeritus at the University of Connecticut and a leader at the Complexity Science Hub in Vienna, suggests these statistics point toward a broader societal risk he calls elite overproduction. Turchin argues that when a society generates more individuals seeking elite status than there are positions available, the resulting frustration can lead to systemic instability. He identifies this as one of three primary pressures preceding a societal collapse, alongside declining living standards and government insolvency. Notably, the United States national debt has now reached a record $40 trillion.
Turchin has previously stated that the value of a diploma declines when the economy cannot generate enough high-level jobs for the number of graduates produced. He described crowded airport lounges as a symbol of an overpopulated upper middle class, noting that the overproduction of lower-ranking elites eventually decreases benefits for everyone.
Global Youth Protests and Instability
This frustration has already manifested in international unrest. In Nepal, where youth unemployment is roughly 21%, a September 2025 ban on 26 social media platforms triggered violent protests. Demonstrators set fire to government buildings and homes of politicians, leading to the resignation of Prime Minister K.P. Sharma Oli and at least 76 deaths. In India, a movement known as the Cockroach Janta Party emerged after Chief Justice Surya Kant compared certain activists to parasites. Led by Boston University graduate Abhijeet Dipke, the group protested national exam leaks, eventually leading to the resignation of Education Minister Dharmendra Pradhan in July.
In France, hundreds of thousands have taken to the streets to protest teacher shortages and the university entrance platform known as Parcoursup. On October 17, the Interior Ministry estimated 550,000 participants in demonstrations that have turned violent in some regions. While students demand 250,000 additional university spots, Higher Education Minister Philippe Baptiste has dismissed the removal of Parcoursup as demagogy. This standoff occurs as France faces a projected public debt of 121.7% of GDP for the coming year.
Source: fortune.com · 2026-10-26