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Decoding US Engineering Job Market: Why Computer Engineering Faces Highest Unemployment

October 21, 2025
in Education
Reading Time: 6 min

The evolving job market of 2025 presents a complex landscape for college graduates, with significant variations in employment rates, earning potential, and opportunities for further education. Data collected in 2023 by the U.S. Census Bureau’s American Community Survey (IPUMS) sheds light on these disparities, revealing stark differences in labor market outcomes across various engineering disciplines. While some fields continue to offer robust earnings and job security, others are encountering substantial challenges in early career employment.

Computer Engineering shows highest unemployment among US engineering graduates: Check full list here

Computer Engineering Leads in Unemployment

Among the engineering fields examined, Computer Engineering graduates experience the highest unemployment rate, standing at 7.5%. This is closely followed by Computer Science, which reports an unemployment rate of 6.1%. In sharp contrast, more traditional disciplines like Civil Engineering and Aerospace Engineering demonstrate remarkably lower unemployment rates of just 1.0% and 1.4%, respectively.

Underemployment, which measures graduates working in roles below their qualification level, presents a different but equally significant challenge. Engineering Technologies records the highest underemployment rate at 40.1%, indicating that many graduates in this area are taking jobs that do not fully utilize their specialized skills. General and Miscellaneous Engineering also show elevated underemployment rates, both exceeding 28%.

Earnings and Graduate Studies

Entry-level salaries also vary considerably across engineering majors. Graduates in Chemical and Computer Engineering command the highest median early career wages at $80,000. Conversely, Engineering Technologies graduates report the lowest median early career earnings, at $60,000.

As careers progress, mid-career earnings maintain similar patterns. Aerospace Engineering graduates lead with median mid-career wages topping $125,000, while Engineering Technologies and General Engineering hover around $100,000.

The pursuit of graduate education also plays a pivotal role in career trajectories. Over 51% of Aerospace Engineering graduates hold an advanced degree, a statistic that reflects the demanding technical nature of the field. In contrast, Computer Science shows lower participation in graduate school, with only 32.8% of graduates pursuing advanced studies.

Labour Market Outcomes by Major

Major Unemployment Rate Underemployment Rate Median Early Career Wage Median Mid-Career Wage Share with Graduate Degree
Aerospace Engineering 1.4% 18.8% $76,000 $125,000 51.5%
Chemical Engineering 2.0% 16.5% $80,000 $120,000 47.8%
Civil Engineering 1.0% 20.2% $71,000 $100,000 39.9%
Computer Engineering 7.5% 17.0% $80,000 $122,000 40.0%
Computer Science 6.1% 16.5% $80,000 $115,000 32.8%
Electrical Engineering 2.2% 19.5% $78,000 $120,000 48.3%
Engineering Technologies 1.9% 40.1% $60,000 $100,000 25.9%
General Engineering 2.4% 28.2% $70,000 $100,000 37.5%
Industrial Engineering 4.6% 16.8% $76,000 $108,000 41.7%
Mechanical Engineering 1.5% 19.4% $75,000 $115,000 39.6%
Miscellaneous Engineering 3.4% 28.1% $70,000 $108,000 46.3%

Source: US Census Bureau, American Community Survey (IPUMS), 2023; analysis compiled February 20, 2025.

What This Data Tells Students and Educators

These findings underscore the critical importance of aligning educational and career choices with the realities of the labor market. While STEM fields undeniably continue to offer competitive salaries, it’s clear that not all engineering majors guarantee immediate job security upon graduation. Graduates in Computer Engineering and Computer Science, facing higher unemployment risks, could significantly benefit from internships, specialized skill development, or pursuing advanced degrees to enhance their marketability. In contrast, disciplines such as Civil and Aerospace Engineering appear to offer more stable early career employment opportunities.

For universities and policymakers, this data highlights a crucial need for enhanced career guidance, robust experiential learning programs, and continuous upskilling initiatives. Such measures are vital to adequately prepare students for a dynamic labor market where both job quality and relevance can vary substantially across different fields.

For those looking to advance their careers or explore international opportunities, strategic planning is key. Consider seeking expert guidance to navigate the complexities of global education and career policies.

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