Oh, The Places You'll Go
Recent college graduates face a tougher job market than more seasoned professionals. The latest data shows that college grads between the ages of 22 and 27 years old have an unemployment rate of 5.8%, compared to just 2.7% for all graduates.[1] Plus, that number has jumped 1.2% since May of last year, signaling a tighter hiring environment and overall economic uncertainty.
But national trends don't always reflect what's happening within specific areas. And unemployment isn't the only metric to consider when figuring out where to focus your job search and where to live. That's why we looked at five data points to evaluate the top 50 most populous U.S. metro areas and find the best ones for new college grads.
- Median wage at the 75th percentile: High earners represent career potential; this figure shows where recent grads can earn more than the national average over time, especially with a college degree in their back pocket.
- Average rent price: Monthly rent to assess overall affordability. The national average is $1,633.
- Unemployment rate: This indicates the strength of the local job market and how easily recent grads may find employment. For comparison, the national unemployment rate is 4.2%.
- Density of residents ages 20 to 29: Measures the concentration of young adults, making it easier for graduates to make new friends and expand their social circles.
- Walk Score: This score evaluates how walkable each city is, which is both convenient and shows where grads could avoid buying a car.
Check out the 10 best large cities for recent graduates, followed by the worst markets based on our criteria.
The 10 Worst U.S. Cities for Recent Graduates
Where are the worst places in the country for recent graduates? Here are the 10 cities that ranked at the bottom of our list:
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Las Vegas, Nevada
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Riverside, California
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Tampa, Florida
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Jacksonville, Florida
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New Orleans, Louisiana (tied)
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Cincinnati, Ohio
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Memphis, Tennessee (tied)
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Birmingham, Alabama
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Orlando, Florida
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Pittsburgh, Pennsylvania (tied)
Renters insurance as a new grad
When you're just setting out on your own, you will likely have a lot of expenses. It can be easy to forget about renters insurance or to consider it not an important line item in your budget. However, renters' insurance only costs, on average, around $19 a month.
Renters insurance can end up saving you substantially in the event that a covered peril causes the destruction of your home. That can include replacing your belongings and providing a place for you to stay while your home is being repaired.
Methodology
We analyzed the 50 most populous U.S. metropolitan statistical areas (MSAs) using five data points to determine how suitable each location is for recent college graduates. Each metric was ranked from best to worst, and we averaged those ranks to determine the final list.
