By: Avery Branscum

FAYETTEVILLE, Ark. (UATV) – New college graduates are facing issues finding jobs. For college graduates ages 20 to 24, the unemployment rate is 2.2% higher than the national average, which currently sits at 4.4%.

Entry-level hirings have dropped nearly 17% since 2019, leaving fewer opportunities for those seeking jobs right after college. University of Arkansas economics department chair, Raja Kali thinks this could be caused by several factors.

“You’ve probably read in the news about companies, particularly in technology laying off people just trying to get rid of excess slack,” Kali said.  “Some of this was the rush to hire people during COVID and they did some overhiring. So, I think across the board, a lot of companies are a little more cautious about hiring new people at the moment.”

College degrees cost thousands of dollars and require hours of dedication. Is a degree still enough to secure a job and make a significant living?

According to the Pew Research Center in 2022, on average, households headed by young college graduates make more money.

• Households headed by a young high school graduate have a median net worth of $30,700.
• Households headed by a young adult with some college education had a median net worth of $52,900.
• Households headed by a young college graduate had a median net worth of $120,000.

This study shows how a college degree can assist in making significantly more money for young adults who choose to pursue one.

“There’s this discussion about some companies saying that they don’t need employees to have bachelor’s degrees or undergraduate degrees so to speak,” Kali said. “But the evidence is still quite robust that your lifetime earnings go up as you get more education.”

Students like Mallory Hawkins have experienced the issue of struggling to find an entry-level job for after graduation. She says she did not get any job offers back. The reason was because she needed more experience or did not have the correct degree.

“Like I feel like it’s hard to set expectations for an entry level position and want new grads to train them,” Hawkins said. “But then setting that expectation that they need three years experience when for the past three years we’ve been in school.”

After searching and finding no luck, Hawkins decided to go back to school after graduation in December and get a degree in nursing to better her chances of a job.