College Degree Earnings Gap Narrows as Non-Degree Workers Gain Ground
The wage disparity between workers without college degrees and their degreed counterparts has reached its smallest margin since 2019. Inflation-adjusted data reveals a 5.6% decline in college graduate earnings since December 2019, while non-degree workers saw a 1.5% increase.
Vocational education's rising prominence coincides with shrinking pay differentials. Some skilled trades now offer compensation approaching traditional graduate roles—December's non-college workers earned 57.4% of graduate wages, nearing July 2025's peak of 57.75%.
Graduates face compounding challenges: stagnant wages failing to match inflation, accelerating unemployment rates, and artificial intelligence encroaching on white-collar professions. The real earnings of degree holders dropped from $1,389 to $1,311 in constant dollar terms over six years.
