NYC Young College Grads Face Higher Unemployment Than Peers Without Degrees

For the first time in over a decade, young New Yorkers with college degrees are experiencing higher unemployment rates than their peers who did not pursue higher education. In March 2026, the unemployment rate for New Yorkers aged 22 to 27 with college degrees reached 7.3%, surpassing the 7.1% rate for those in the same age group without degrees, according to data highlighted by New York City Comptroller Mark Levine.

This marks a significant reversal from historical trends. Between 2011 and the fall of 2024, unemployment among college-educated young adults in the city had been steadily increasing, while rates for those without degrees declined sharply since the fall of 2024. As of March 2026, the situation had inverted, with college graduates facing greater difficulty securing employment.

Levine suggested that artificial intelligence could be a factor in this emerging trend, posting on X that it is "one more possible sign that AI is already impacting employment in NYC." He questioned how long the city would wait before acknowledging the potential impact, stating it was the "first time in decades" that degree holders were at a disadvantage in the job market compared to those without degrees.

These observations align with concerns raised in a May report from Levine's office, which warned that New York City was "sleepwalking into the age of AI." That report projected that AI could lead to approximately 300,000 job losses and a $14 billion reduction in tax revenue for the city, potentially impacting its economy and workforce.

The report highlighted New York's vulnerability due to its high concentration of white-collar jobs, which are considered more susceptible to AI-driven disruption. Data cited by the comptroller's office indicated a significant presence of AI usage within the city's computer and mathematical occupations.

Nationally, a similar trend appears to be developing. In June, Bureau of Labor Statistics data showed a 5.7% unemployment rate for young college graduates nationwide, compared to 4.1% for all workers. Fifteen years prior, in 2010, the situation was reversed, with 5.9% of recent graduates unemployed versus 9.3% of all workers, according to the New York Federal Reserve.

Levine has previously advocated for New York to adopt a more proactive strategy in preparing for the widespread integration of AI into the workforce, recommending that the city allocate 16% of its annual tax revenue to a rainy day fund. The comptroller's office has also projected that AI could create approximately 52,000 new jobs in the city by 2030, provided that appropriate measures are implemented.