Recent Graduates in STEM Can’t Find Jobs Like They Used To

STEM degrees have long been considered a pathway to lucrative and stable employment opportunities. However, recent data from the Federal Reserve Bank of New York indicates a shift in this trend. The unemployment rates for several traditional STEM degrees, such as physics, computer engineering, and chemistry, are on the rise among recent graduates aged 22 to 27. In fact, these degrees are experiencing higher unemployment rates compared to the national average for all recent graduates and young workers.

For instance, graduates with physics degrees are facing an unemployment rate of 7.8%, making it one of the worst-performing degrees in the analysis of over 70 popular majors. Computer engineering follows closely behind with a graduate unemployment rate of 7.5%. In contrast, the average unemployment rate for recent graduates across all majors is 3.9%, while the national unemployment rate for young workers stands at 6.9% as of March.

The trend of high unemployment rates among recent STEM graduates is a relatively new development. In the past, degrees such as art history, liberal arts, and fine arts were more likely to have a higher share of unemployed graduates. However, the tables have turned, with art history graduates now exhibiting higher employment rates compared to those with degrees in computer engineering, mathematics, chemistry, industrial engineering, and physics.

While STEM majors, particularly in engineering fields, are known to produce some of the highest-paid graduates, there is a growing concern about the oversaturation of STEM graduates in the job market. The number of STEM degrees awarded by colleges has increased by approximately 34% over the past decade, reaching its peak in 2016 before slowing down in recent years.

Multibillionaire Mark Cuban has also raised alarms about the impact of artificial intelligence and automation on STEM jobs. He predicted a greater demand for liberal arts majors in the future due to advancements in AI technology. In fact, AI tools have become more proficient in technical skills like programming and data analysis, sparking debates about the relevance of certain STEM degrees.

While a liberal arts degree can instill critical thinking and adaptability in graduates, it is not a guaranteed shield against the effects of AI and automation. Recent reports suggest that entry-level positions are being displaced by AI, leading to higher unemployment rates among recent college graduates across all majors.

In conclusion, the landscape of employment opportunities for STEM graduates is evolving, and it is essential for students to consider the changing dynamics of the job market when choosing their academic paths. The integration of AI and automation is reshaping the workforce, emphasizing the importance of acquiring a diverse skill set that combines technical expertise with critical thinking and creativity.