Unemployable college grads blame capitalism, but the real culprit is higher-ed subsidies.
Palantir CEO Alex Karp attributed Zohran Mamdani’s election as New York mayor to a reverse class warfare: “I think the average Ivy League grad voting for this mayor is highly annoyed that their education is not that valuable, and the person down the street who knows how to drill for oil and gas, who’s moved to Texas, has a more valuable profession.”
He has a point. Colleges are graduating a surfeit of young people who lack hard or even soft skills. Even as employers complain about a dearth of qualified workers, a growing college-educated proletariat can’t find jobs they want to work. They believe their degrees aren’t being adequately rewarded by the free market and blame capitalism.
The real culprit is enormous government subsidization of higher education, which has distorted the labor supply. More than seven million bachelor’s degree recipients have entered the labor force since January 2020. Meanwhile, the number of workers without college degrees has declined by about 200,000 and those with associate degrees has shrunk by 1.1 million.
As baby boomers in blue-collar professions retire, labor shortages are growing in industries like construction, trucking and manufacturing. President Trump’s deportations compound the problem. Nearly 50% of small-business owners reported few or no qualified job applicants last month in a National Federation of Independent Business survey. “Finding qualified workers is proving to be impossible,” a Missouri manufacturer told the NFIB. The sentiment was echoed by a California auto shop: “We need to teach the trades in high school again. Trade jobs can pay well, but there is a real shortage of people willing/able to do the job.”
Too many young college grads are unemployed because they aren’t willing or able to do the jobs that are available. As of October 2024, 30.4% of 20- to 29-year-olds who had earned bachelor’s degrees that year weren’t working, compared with 21.9% for those who had earned associate degrees during the same period, according to the Bureau of Labor Statistics.