College grads face one of the toughest job markets in a decade — ‘Right now is a really difficult time to find a job,’ expert says – CNBC

Report on Youth Employment Challenges and Their Impact on Sustainable Development Goals

This report analyzes the current state of the United States labor market for recent college graduates, framing the challenges within the context of the United Nations Sustainable Development Goals (SDGs). The findings indicate significant obstacles to achieving key targets related to decent work, quality education, and reduced inequality.

Current Labor Market Analysis for Recent Graduates

Despite overall job growth in the U.S. economy, recent college graduates are encountering one of the most difficult employment landscapes in a decade. This trend poses a direct challenge to sustainable economic development.

Key Economic and Employment Indicators

• The national unemployment rate has risen to 4.4%.
• For younger workers aged 16 to 24, the unemployment rate is significantly higher at 10.4%, as of September.
• A report from Oxford Economics identifies the current job market as an “enormous challenge” for Generation Z entering the labor force, suggesting it may be an early indicator of a broader economic slowdown.

Erosion of Entry-Level Opportunities and Educational Value

The traditional value of a bachelor’s degree as a pathway to stable employment is diminishing. This shift has profound implications for both educational and economic policy aligned with the SDGs.

1. Technological Displacement: Some employers are replacing entry-level positions with artificial intelligence to reduce costs, directly impacting the availability of jobs for new graduates.
2. Decreased Hiring Success: A study by the National Association of Colleges and Employers (NACE) found that while the Class of 2025 submitted more job applications than the Class of 2024, they received fewer job offers on average.
3. Low Post-Graduation Employment: According to a Cengage Group report, only 30% of 2025 graduates had secured a full-time job in their field, highlighting a significant gap between graduation and meaningful employment.

Implications for SDG 8: Decent Work and Economic Growth

The current employment crisis for young workers directly undermines the objectives of SDG 8, which aims to promote full and productive employment and decent work for all.

Challenges to Target 8.5: Full and Productive Employment

The difficulty recent graduates face in securing employment is a direct contradiction to the goal of achieving full and productive employment. Factors such as economic uncertainty, persistent inflation, and a slowdown in consumer spending are eroding entry-level opportunities, preventing a vital segment of the workforce from contributing to and benefiting from economic growth.

Impact on Target 8.6: Youth Not in Employment, Education or Training (NEET)

The high unemployment rate of 10.4% for young people is a critical concern for SDG Target 8.6, which seeks to substantially reduce the proportion of youth not in employment, education, or training. A failure to integrate these individuals into the labor market risks long-term economic and social consequences.

Broader Impacts on SDGs 4 and 10

The labor market challenges extend beyond economic growth, affecting goals related to education and inequality.

SDG 4: Quality Education

The diminishing “safety premium” of a college degree, as noted in an analysis by Goldman Sachs, raises questions about the alignment between higher education and labor market demands. This trend challenges SDG 4’s aim to ensure inclusive and equitable quality education that provides relevant skills for employment and decent jobs (Target 4.4). If a degree no longer reliably leads to professional employment, the efficacy of the current educational system in preparing youth for the workforce is called into question.

SDG 10: Reduced Inequalities

A weak labor market for young entrants can have a “long-term scarring impact,” according to Oxford Economics. This phenomenon directly threatens the progress of SDG 10, which aims to reduce inequality.

• Wage Growth and Earning Potential: Difficulty in securing initial employment negatively affects long-term wage growth and earning potential.
• Widening Income Inequality: As noted by Cory Stahle, senior economist at Indeed Hiring Lab, these early-career setbacks can compound over time, leading to a “further widening in income inequality.”

Conclusion: An Urgent Call for Sustainable Solutions

The challenging job market for recent U.S. graduates represents a significant impediment to achieving multiple Sustainable Development Goals. The rising youth unemployment rate and the declining return on educational investment threaten progress on SDG 8 (Decent Work and Economic Growth), SDG 4 (Quality Education), and SDG 10 (Reduced Inequalities). Addressing these interconnected issues is critical for fostering an inclusive, equitable, and sustainable economic future.

Sustainable Development Goals (SDGs) Addressed in the Article

• SDG 8: Decent Work and Economic Growth – The article’s central theme is the challenging job market, particularly for young people and recent graduates, which directly relates to the goal of promoting full and productive employment.
• SDG 4: Quality Education – The article questions the effectiveness of a college degree as a pathway to employment, touching upon the relevance of education for the current job market.
• SDG 10: Reduced Inequalities – The article explicitly mentions that the difficulties young workers face can lead to a “further widening in income inequality.”

Specific SDG Targets Identified

SDG 8: Decent Work and Economic Growth

1. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
   • Explanation: The article directly addresses this target by highlighting the struggle for recent graduates and young people to find employment. It notes that “fewer employment prospects for college graduates just starting out” and a “difficult time to find a job” are significant issues, indicating a failure to achieve full and productive employment for this demographic. The discussion on the long-term negative impact on “wage growth and earning potential” also connects to the decent work aspect of this target.
2. Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training (NEET).
   • Explanation: Although the target year has passed, the principle remains highly relevant. The article’s focus on rising youth unemployment is a direct measure of the challenge this target seeks to address. It states that for “younger workers, ages 16 to 24, unemployment was 10.4% in September,” which is more than double the overall unemployment rate. This signifies a growing problem in the proportion of youth not in employment.

SDG 4: Quality Education

1. Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.
   • Explanation: The article implies a growing disconnect between the skills provided by higher education and the demands of the labor market. The statement, “For the first time in modern history, a bachelor’s degree is no longer a reliable path to professional employment,” suggests that the skills acquired are not as relevant as they once were. Furthermore, the mention that employers are “replacing entry-level workers with artificial intelligence” points to a shift in required skills that current education may not be adequately providing.

SDG 10: Reduced Inequalities

1. Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average.
   • Explanation: The article connects the weak labor market for young people directly to future inequality. It warns that declining wage growth for young adults “could have a long-term scarring impact” and that if these workers struggle to find jobs now, it “impacts their earning capabilities.” Economist Cory Stahle is quoted saying, “it really can lead to further widening in income inequality,” which directly threatens the progress of this target.

Indicators for Measuring Progress

SDG 8: Decent Work and Economic Growth

1. Indicator 8.5.2: Unemployment rate, by sex, age and persons with disabilities.
   • Explanation: The article explicitly provides data for this indicator. It states, “the overall unemployment rate edged up to 4.4%, and for younger workers, ages 16 to 24, unemployment was 10.4% in September.” This data directly measures progress (or lack thereof) towards achieving full employment for the youth demographic.
2. Indicator 8.6.1: Proportion of youth (aged 15-24 years) not in employment, education or training.
   • Explanation: The article directly addresses the employment component of this indicator by citing the 10.4% unemployment rate for individuals aged 16 to 24. This figure is a key part of measuring the overall NEET rate.

SDG 4: Quality Education

1. Implied Indicator: Graduate employment rates.
   • Explanation: While not a formal UN indicator, the article uses graduate employment rates as a de facto measure of education’s relevance. The Cengage Group report found that “only 30% of 2025 graduates said they had secured a full-time job in their field.” The NACE study also points to a decline in job offers for the Class of 2025 compared to the Class of 2024. These statistics are used to argue that the “safety premium” of a college degree is shrinking, implying a decline in the effectiveness of education in securing employment.

SDG 10: Reduced Inequalities

1. Implied Indicator: Wage growth for young workers vs. the general population.
   • Explanation: The article implies this indicator by highlighting that “wage growth is declining for young adults.” It warns this trend, combined with unemployment, will impact long-term earning potential and widen income inequality. This suggests that tracking the wage growth of young people as a specific cohort is a crucial measure for assessing progress toward reducing inequality.

Summary Table: SDGs, Targets, and Indicators

Source: cnbc.com