1 In 4 Unemployed Americans Has A Degree – The Future Of White Collar Jobs

Authored by Mary Prenon via The Epoch Times (emphasis ours),

With a changing economy, artificial intelligence (AI) replacing many jobs, and widespread unpreparedness for the job market, the time-honored tradition of tossing their caps in the air to celebrate earning their degrees and starting exciting new careers has turned into disappointment for many college graduates.

Statistics released by the Department of Labor on Nov. 20 show that 25 percent of the 7.6 million unemployed Americans in September held at least a bachelor’s degree.

With more than 1.9 million unemployed college graduates on the market, the September data show little or no change from that of August in major industries to which young degree-holders typically gravitate. These include financial activities, professional and business services, wholesale and retail trade, the federal government, and transportation.

The seasonally adjusted overall unemployment rate was 4.4 percent in September, while the rate for degree holders rose to 2.8 percent from 2.7 percent in August—well above the 2.3 percent recorded in September 2024.

Frustrated With Job Search

Stacey Cohen, author of Brand Up 2.0: Propel Your Early Career Success, has been working with college graduates, and even high school students, to prepare them for future careers.

“I’ve been talking with many recent graduates and a lot of them are frustrated and upset about not finding a job yet,” she told The Epoch Times. “They feel like they’ve worked so hard over the past four years and now nobody wants them.”

Cohen believes the current situation, with so many unemployed college graduates, could be the result of several factors, including a changing economy, AI replacing many entry-level jobs, and graduates who may be unprepared for the job market. “One graduate told me about sending hundreds of resumes out and not hearing back from anyone,” she said.

Cohen noted that some graduates she has counseled have taken side jobs—such as waitressing, golf caddying, or other temporary work—while continuing their search for a permanent position. “It’s better to have some job experience on your resume—you don’t want any big gaps in there,” she said.

A recent graduate with a B.A. in Business Administration was among many expressing frustration on online forums.

“Since graduating, I’ve submitted over 1,300 applications to white collar jobs with multiple iterations of a resume, and have only gotten one offer that required a relocation that I could not afford,” the post stated. “ I worked at McDonalds for a couple of months, but didn’t last long there.”

Another user was still seeking a job after graduating in June.

“I have done internships, projects, and even graduated with honors,” the post noted. “I can’t land a single job even though I’ve sent hundreds of applications. This whole job search has been taking a blow out of my self-esteem and it makes me feel like I worked hard for nothing.”

Biggest Hurdle in Job Hunt

Cohen, who is also CEO and founder of Co-Communications, a New York-based marketing firm, said that when it comes to the job hunt, the biggest hurdle is getting your resume in front of a human being.

“It’s not because they’re unqualified—it’s because so many companies now rely on AI filters to scan resumes before they’re even seen by human eyes,” she said. “Unfortunately, this is the new normal and what early career professionals are up against.”

Cohen suggested that job seekers take greater care by fully reading the job description and tailoring their resume to fit this changed hiring landscape by using the best keywords.

For example, Cohen noted, if someone has experience in social media promotions and the position calls for “social media content creation,” it’s important to use that exact phrase in the resume so it will be picked up by AI and, hopefully, seen by an interviewer.

“This means changing up your resume and cover letter for each potential job,” she said. “It’s a lot of work, but if you streamline your list, you can do it.  Remember, it’s quality over quantity.”

Cohen has written and presented on topics ranging from optimizing a resume for algorithms to the importance of creating a LinkedIn profile and networking at business events.

“Graduates seeking employment should also attend business networking events with their parents—I see this all the time now,” she said. “Get to know the decision-makers and start to create your own contact lists.”

Cohen also recommended that parents support their children during the job search.

“Offer to run a mock interview or proofread a résumé, but more importantly, remind them that rejection is not a reflection of their worth,” she said. “It’s merely a signal to refine the strategy, not abandon the goal.”

Most importantly, she said, new graduates must be able to answer the simple question: “Why should we choose you?”

“A lot of these young people don’t realize what their superpower is and how to effectively communicate that,” she added. “Marketing yourself is just like marketing a product or service—let people know what makes you stand out from the rest.”

The Bigger Picture

Rachel Merritt, senior director of career services and employer development at Ancora Education, told The Epoch Times that Gen Z graduates’ concerns about the job market are indeed valid.

“AI is automating many of the basic, entry-level roles that used to help people get their foot in the door, so breaking in has become harder than in the past,” she said. “Also, many companies have experience requirements that most young adults haven’t had the chance to gain yet, so even roles that should be accessible often aren’t.”

Based in Arlington, Texas, Ancora Education offers technical training programs in health care, IT, business, and skilled trades.

Merritt noted that too often, college graduates are also faced with the financial pressure of repaying student loans and need money quickly. When such roles are not available, she noted, it makes them feel that the traditional college-to-career path is less reliable than it was for previous generations.

“This could delay promotions, salary growth, and major financial milestones like buying a house,” she added.

As a result, Merritt said, many younger people are now turning to skilled trades, health care, or technical certifications that can lead to jobs, higher starting salaries, and faster advancement.

A recent Resume Builder survey found that four in 10 Gen-Z college graduates were considering blue collar jobs for security.

“They have seen Millennials graduate from traditional college and be saddled with student loan debt and very few job opportunities,” Merritt said. “Trade schools have a much lower cost and higher [return on investment], a larger pool of open jobs and good starting wages.”

According to Merritt, Ancora has seen an influx of young people pursuing skilled trades training in HVAC, electrical work, welding, and plumbing. She said that Gen Zers are choosing paths that are in demand and offer faster entry into the workplace without years of debt from college expenses.

Opting for Smaller Colleges

Andrew Crapuchettes, CEO and founder of Idaho-based Red Balloon, one of the county’s largest job boards connecting employers with potential employees, told The Epoch Times that the shift toward blue collar jobs could have a substantial impact on colleges over the next 10 years.

“Based on the current unemployment situation for college grads, there seems to be a dramatic decrease in demand for college education today,” he said. “I’m predicting we could see hundreds of colleges actually go out of business over the next decade.”

According to Appily, a college locator website, there are currently more than 6,500 colleges across the United States, of which 1,995 are considered public universities. Of those, 1,626 are degree-granting.

The Education Data Initiative lists the average cost of a college education today at $38,270 per student, per year, including tuition, books, supplies, and daily living expenses. The data research organization indicates these costs have more than doubled since the beginning of the 21st century.

“Considering student loan interest and lost potential income, investing in a bachelor’s degree can ultimately cost in excess of $500,000,” the website states.

“There’s definitely a demographic shift, and I see more and more students deciding that a four-year degree just doesn’t make sense,” Crapuchettes said. “So many now are opting to go directly into the labor market.”

Except for physicians and other skilled medical professionals, attorneys, engineers, and other specialists, Crapuchettes believes there will be less need for white collar jobs in the future, but a growing need for trade jobs such as plumbers, electricians, steamfitters, auto service and solar panel technicians, heavy machinery operators, and others.

He noted that his company is seeing a mix of job openings across industries, ranging from biotech to hospitality and manufacturing. However, many employers are opting to hire graduates from smaller colleges instead of larger, well-known universities.

“Employers often tell me that they just want someone who wants to work and who doesn’t come in with a sense of entitlement,” Crapuchettes said.

For college graduates currently seeking a full-time position, Crapuchettes agrees that building a network is the most important step.

“They should get out and meet people, shake hands, and start building relationships,” he said.