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ccording to a recent Federal Reserve Bank of New York report, U.S. computer engineering graduates face a 7.5% unemployment rate—more than double the 3% rate for art history majors.

This counterintuitive trend, drawn from 2023 U.S. Census data, challenges the assumption that STEM degrees guarantee job security while humanities majors languish.

Computer science and engineering, fields synonymous with innovation and high salaries (a median of $80,000), are struggling to place graduates, with unemployment rates of 6.1% and 7.5%, respectively, above the national average of 5.8%.

Meanwhile, art history majors, often mocked for their "impracticality," are finding jobs at a rate rivaling fields like nutritional sciences (0.4% unemployment).

What’s driving this shift?

The rise of artificial intelligence offers a clue.

As AI automates technical tasks, employers are increasingly valuing soft skills—creativity, critical thinking, and adaptability—that humanities majors often hone.

BlackRock’s COO, Robert Goldstein, underscored this at a conference last year, emphasizing the firm’s growing interest in history and English majors for their unique perspectives.

This isn’t to say technical skills are obsolete; rather, the job market seems to crave a balance of hard and soft skills, with humanities graduates filling the gap where AI falls short.

Yet, the data also raises questions about STEM education and market saturation.

Are computer engineering programs producing more graduates than the market can absorb? Or are curricula failing to adapt to rapidly evolving tech demands?

The 32% year-over-year spike in Gen Z households receiving unemployment benefits suggests broader economic pressures may be at play, particularly for recent graduates.

This trend is a wake-up call. Students choosing majors should weigh passion and skill development over outdated stereotypes about "safe" degrees.

Likewise, universities must ensure STEM programs evolve with industry needs, integrating interdisciplinary skills to prepare students for an AI-driven world.

Posted 
Jun 5, 2025
 in 
Skills For Future
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