The value of higher education—particularly college and master’s degrees—is under fresh scrutiny as more young graduates, even those with advanced credentials, struggle to land jobs in a shifting economic landscape.
While the June 2025 employment report showed the U.S. economy added a healthy 147,000 jobs, deeper analysis reveals a slowdown in hiring, especially for younger workers with graduate degrees. Economic uncertainty fueled by trade tensions, AI disruption, and fears of a potential recession has made job markets more competitive—and less forgiving—for new entrants.
Rising Unemployment Among Highly Educated Young Workers
Data from the St. Louis Federal Reserve shows that the unemployment rate for Gen Z workers with a master’s degree or higher averaged **5.8% in the first half of 2025**, up sharply from **3%** in the same period in 2024. That's significantly higher than the overall national unemployment rate of **4.1%**.
This trend has sparked heated discussion on platforms like Reddit and X, where finance-savvy users are questioning whether the investment in a master’s degree still pays off.
> “A master’s with no experience is a very expensive permission slip,” one Reddit user wrote in a thread titled *“Are degrees worth it anymore?”* The post drew nearly 750 comments.
Another user noted:
> “It’ll get you past the initial resume screen, but it’s not a golden ticket—especially in competitive, educated areas. In some fields, a bachelor’s with real-world experience can be more valuable than a master’s with none.”
Why Is It Harder for Graduates Now?
Several factors contribute to the current challenges:
- **Economic Uncertainty**: Trade wars, inflation concerns, and recession fears have companies tightening hiring budgets.
- **AI Disruption**: Automation and artificial intelligence are reshaping industries, making some traditional career paths obsolete while creating demand in tech-driven fields.
- **Generational Headwinds**: Millennials graduated into the Great Recession; Gen Z entered the workforce during the pandemic. Both groups now face another uncertain economic chapter.
Priya Rathod, a career expert at Indeed, explains:
> “Even grad-level qualifications don’t guarantee job placement. It’s becoming increasingly difficult for younger generations to break into the workforce, especially in times of economic uncertainty and AI disruption.”
She adds:
> “People are disillusioned. Even advanced degrees don’t guarantee jobs in today’s economy.”
The Cost vs. Return on Investment (ROI)
Deciding whether a master’s degree is worth it depends heavily on individual circumstances:
- **Time and Money**: A master’s typically takes two years and costs an average of **$62,820**, according to the Education Data Initiative. That’s a significant investment, especially if you’re already carrying undergraduate debt.
- **Total Student Debt**: Americans collectively owe **$1.6 trillion** in student loans, according to the New York Fed.
- **Career Impact**: Nearly **half (43%)** of American workers said they’ve turned down a job offer due to low pay relative to their debt load. The same percentage avoided certain careers because of student loan concerns.
Which Fields Are Worth the Investment?
Not all degrees are created equal. The ROI varies widely based on field and institution.
- **High ROI Fields**: Biomedical sciences, healthcare, engineering, and computer science tend to yield strong returns.
- **Lower ROI Fields**: Arts, humanities, and theological studies often come with limited financial payoff.
For example, data from FREOPP—a research center analyzing university outcomes—shows that a **master’s in biological and biomedical sciences from Ohio State University** offers a lifetime value of **$7.3 million**, while a **theological and ministerial studies degree from Central Yeshiva Tomchei Tmimim Lubavitz** yields just **$1.66 million** over a career.
Rathod advises students to consider long-term sustainability:
> “Avoid discretionary-spending jobs that suffer when consumers cut back. Think about whether your chosen field will survive and grow in the future.”
Fields like nursing, medicine, and technology are seen as safer bets.
Skills Over Paper Credentials?
More employers are emphasizing skills rather than degrees alone. Many companies now rely on certifications, internships, and project-based portfolios to evaluate candidates.
> “In the past, having a degree was enough,” Rathod said. “Now, companies are focusing more on skill-based hiring.”
Making an Informed Decision
There are tools available to help weigh the decision:
- **Online ROI Calculators**: These tools analyze earnings potential, graduation risks, and early-career salaries to estimate the return on investment for different degrees.
- **Financial Planners**: Professionals can help assess whether the cost of a degree aligns with your long-term career and financial goals.
So, are college or master’s degrees still worth it?
**It depends.** In high-demand, stable industries like healthcare and STEM, advanced degrees can still provide a strong ROI. But in other fields, particularly those facing automation or declining demand, the financial and opportunity costs may outweigh the benefits.
Ultimately, students must carefully weigh the cost, time, and expected career outcomes before committing to advanced education. For many, gaining hands-on experience through internships, apprenticeships, or alternative credentialing programs may be a smarter—or at least complementary—path forward.