College graduates are now jobless at roughly the same rate as non-grads — here's why college may no longer make sense for some

A Financial Times report says the number for young male grads' unemployment is even higher, and rose from 5% to 7% in the past year.

While the unemployment rate for college grads is similar to numbers from 2010, it’s a dramatic shift in advantage college grads once held. At that time, the unemployment rate for non-college-educated young men hovered above 15%, compared to 7% for degree holders — an 8% difference.

Meanwhile, women appear to be benefiting more from their degrees. Only 4% of young college-educated women are unemployed — a full 3 percentage points lower than their male counterparts. One possible reason? Industry choices.

Women are entering growing fields

Healthcare and social assistance — sectors that tend to attract more women — are booming. According to the U.S. Bureau of Labor Statistics, health care jobs will have nearly 1.9 million openings projected each year.

In contrast, young men may be struggling in part because they tend to be pickier, holding out for dream roles that align with their aspirations or perceived status.

“Women tend to be more flexible in accepting job offers, even if they’re not perfectly aligned with their career goals,” Lewis Maleh, CEO of recruitment firm Bentley Lewis, told Fortune. “Men, on the other hand, often hold out for roles that align more closely with their ideal career path.”

This career idealism, coupled with a challenging job market, may be contributing to the high number of Gen Z men classified as NEET — not in education, employment, or training. Today, about 11% of young people fall into this category.

The rise of trades over traditional college paths

Facing uncertain prospects and mounting student debt, more Gen Z men are skipping college altogether. Between 2011 and 2022, male college enrollment dropped by 1 million while female enrollment fell by just 200,000, according to the Pew Research Center.

Interestingly, many young men are pivoting toward skilled trades. Enrollment at two-year public vocational schools has surged by 20% since 2020, which is equivalent to 871,000 students, according to the National Student Clearinghouse Research Center.

Is a degree still worth it?

The answer may depend on your goals. A 2021 survey by the Federal Reserve found that 73% of college graduates felt their education was worth the cost. And data from Georgetown University’s Center on Education and the Workforce shows that bachelor’s degree holders still earn about 75% more over their lifetimes than those with only a high school diploma.

However, the benefit isn’t universal. The value of a degree varies widely by major, gender, industry, and region. In an era where employers are increasingly dropping degree requirements, college may no longer be the automatic path to prosperity it once was.

For Gen Z, the challenge is no longer just whether to go to college, but how to make sure that investment pays off.