STEM shock: Unemployment for US computer engineering grads more than twice that of art history

Conventional wisdom long held that majoring in a STEM field was a surefire path to job security and high earnings. But new data from the Federal Reserve Bank of New York challenges that narrative, revealing that recent graduates with degrees in computer engineering face significantly higher unemployment than their counterparts in the humanities.

According to the Fed’s analysis of 2023 Census data, the unemployment rate for computer engineering majors stood at 7.5%, compared to just 3% for art history majors. The finding has surprised many education and labor market analysts, especially given the persistent demand for tech talent in the US economy.

Unexpected winners in the US job market
The report shows that graduates in majors like nutrition, art history, and philosophy are outperforming some STEM graduates in terms of employment. Nutritional sciences majors reported an unemployment rate of just 0.4%, while philosophy majors had a rate of 3.2%. In contrast, unemployment for computer science majors was 6.1%, also higher than theology, public policy, and liberal arts graduates.

The data also showed that the unemployment rate for recent US college graduates overall rose to 5.8% in March, up from 4.6% a year earlier. Meanwhile, Gen Z households receiving unemployment benefits increased nearly 32% year over year.

A detailed comparison of majors and job outcomes
The following table, sourced from the Federal Reserve Bank of New York and published in February 2025, outlines unemployment rates, underemployment rates, wages, and graduate degree attainment across a range of college majors:
Source: Federal Reserve Bank of New York, based on 2023 Census data; published in February 2025

Liberal arts degrees regain value in the AI era
Surprisingly, liberal arts degrees are regaining traction. At a conference last year, Robert Goldstein, chief operating officer of BlackRock, as quoted by the CNBC, said the firm is prioritizing hires with degrees in history and English, citing the growing importance of communication and critical thinking — skills not always emphasized in technical training. The rise of artificial intelligence has increased the demand for creativity and human judgment, making these “soft skills” more marketable than ever.

Healthcare remains a top performer in job security
Healthcare is another standout. The unemployment rate for nursing majors was just 1.4%, according to the Fed. The Bureau of Labor Statistics also reported that the US added 902,000 healthcare and social assistance jobs last year, and the sector is expected to grow significantly through 2033.

“Nursing is extremely resilient in times of economic uncertainty,” CNBC quoted Travis Moore, a registered nurse and strategist at Indeed. He added that while early-career wages in nursing may trail other fields, job stability and long-term demand make it a strong choice.

As the US job market continues to shift, these new insights may reshape how students and families evaluate the value of a college major — not just by salary, but by long-term opportunity and resilience.