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macroAug 5, 2026, 3:44 PM

College Costs Surge While Graduates Face Tough Job Market

Rising tuition and student debt are converging with a weak entry-level labor market, leaving many new degree holders unemployed or underemployed.

U.S. college costs continue to climb just as graduates encounter a cooling job market, squeezing the return on higher education. Student debt burdens are mounting while many employers trim entry-level openings, forcing more graduates into roles that do not require a degree.

The mismatch highlights a growing selectivity among companies, with Investopedia noting that fields of study tied to high-demand sectors increasingly determine employment prospects. Majors in technology, healthcare, and certain trades are faring better, while others face steeper underemployment.

The trend adds a note of caution for consumer spending and household formation, as debt-laden graduates may delay major purchases. It also underscores broader macro concerns about labor market efficiency and the skill gap.

Source: First Squawk