Almost half of recent college grads are underemployed. Here are 4 tips to bridge the financial gap

Historically, college graduates have tended to find jobs faster and experience lower unemployment than workers without a degree. But recent data suggests it's now harder to find a job that fits your skill set once you graduate. According to the Federal Reserve of New York , 42.5% of recent college graduates (aged 22 to 27 with a bachelor's degree or higher) are underemployed as of December 2025 — the highest rate since October 2020. Underemployment refers to working in a role that underutilizes your skills, usually at a lower wage or in a part-time position. Younger workers are also dealing with stagnating wage growth. According to an October 2025 JPMorganChase Institute report , income growth has slowed across age groups, with workers aged 25 to 29 experiencing the sharpest slowdown. Underemployment may be better than unemployment, but it can put a real strain on your wallet. Here are some tips and tools to help recent grads bridge the gap. Tips to manage your finances while underemployed Review your fixed costs Make sure you're saving strategically Try out money-making apps Protect your credit score (for the future) 1. Review your fixed costs To start, periodically review your finances. Saving money doesn't always have to mean cutting back on coffee or your weekend adventures; simply try to reduce your fixed costs for more effective long-term results. Fixed costs are essential expenses that you pay consistently, like your rent, phone and utility bills or car insurance. Some adjustments could be more substantial, such as finding a roommate to help split living expenses. But there are simpler ways to make meaningful improvements. For example, you could lower car insurance costs by bundling home and auto policies or removing perks you don't need, like roadside assistance that's already offered by your credit card or vehicle warranty. If you're interested in trying a budgeting app that can help keep track of your day-to-day spending, Rocket Money lets you link your ch...