Youth unemployment rates have increased significantly since the 2020 pandemic, according to analysis from the New York Federal Reserve Bank published Monday. The regional Fed bank reported a 20 percent increase in the jobless rate among college graduates under 29, citing census data in its findings.

The New York Fed suggested that the trend toward remote work may be contributing to younger workers being locked out of the labor force. The analysis did not specify the exact mechanisms by which remote work arrangements might disadvantage younger job seekers.

Separately, data shows a substantial gap between college graduates' salary expectations and market reality. Recent graduates expect starting salaries of approximately $80,000 annually, but actual average starting salaries are around $56,000.

The employment challenges extend beyond salary discrepancies. More than 40 percent of college graduates are reportedly underemployed, working in positions that do not require a college degree. This suggests that credential inflation and job market dynamics are creating barriers for new graduates seeking career-appropriate employment.

The combination of rising youth unemployment, remote work shifts, and the mismatch between graduate expectations and available opportunities indicates broader structural changes in the post-pandemic job market that particularly affect younger workers entering their careers.