Some metropolitan areas are significantly better off for recent college graduates than others. New Research Payroll provider ADP asks, “What do you do next after you graduate?” Good question!
In the report, the authors look at ADP data covering more than four million people ages 20-29 working for more than 27,000 U.S. employers from January 2019 to April 2024 to examine the post-college career paths of recent graduates.
This determined the best major cities for college graduates to pursue jobs.
The study compared and ranked 55 U.S. metropolitan areas with at least 1 million residents on three characteristics: annual wages, employment rates and affordability.
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The study found that jobs requiring a bachelor's degree or equivalent have shown strong growth since 2019, with employment rates set to peak in 2022.
However, by April 2024, employment rates for jobs requiring significant or extensive preparation (i.e., bachelor's degree or graduate school) were below pre-pandemic levels, meaning recent college graduates face a tougher job search than earlier graduates.
The report found that Cleveland-Elyria, Detroit-Warren-Dearborn, Louisville-Jefferson County and Tucson are all cities with strong job trajectories and affordable rates, but low wages.
While it may be tempting to be drawn to high wages alone, unfortunately, high-wage, high-cost metropolitan areas such as San Jose-Sunnyvale-Santa Clara, Seattle-Tacoma-Bella Vista, Chicago-Naperville-Elgin, and Boston-Cambridge-Newton have low employment rates for workers ages 20 to 29.
The San Francisco Bay Area is another good example: It boasts the highest salaries, but also the most affordable, with employment rates just above the median for new graduates.
Cities with low graduate rankings
Rochester, New York, ranked last with the lowest employment rate, wages below the 20th percentile, and moderate cost of living. The New Orleans metropolitan area has low costs of living and high wages, but a similarly low employment rate. Meanwhile, Fresno in California's Central Valley ranked low on all three measures.
Greater Virginia Beach (commonly known as Hampton Roads) has an above-average cost of living, but its entry-level salaries are lower than 98% of the cities surveyed, in contrast to cities like San Jose and Seattle, which have lower employment rates and much higher salaries.
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Of all metro areas surveyed, Raleigh, North Carolina, comes in at number one. Raleigh has the highest employment rate for new graduate applicants, matching a moderately affordable cost of living with an income above the 80th percentile.
Raleigh is known as the “Research Triangle” after the research park located between the University of North Carolina at Chapel Hill, Duke University at Durham, and North Carolina State University.
The Triangle, the country's largest research park, is home to more than 300 science and technology companies.
Greater Baltimore ranks second for similar reasons: the region is home to prestigious universities such as Johns Hopkins University (home to Johns Hopkins Hospital) and the University of Maryland, which means a significant share of jobs in science, technology, engineering, and mathematics fields.
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In third place is Greater Austin, which has a diversified economy led by high employment in the technology sector and has become one of the fastest-growing U.S. metropolitan areas in recent decades.
Overall, Atlanta ranked fourth, Charlotte fifth, New York sixth, San Francisco seventh, Cleveland eighth, Nashville ninth and Indianapolis tenth.
Rounding out the top 20 are Denver, Detroit, Washington DC (13th), San Jose, Louisville, Miami, Dallas, Providence, Columbus, Birmingham and Atlanta.
As recent college graduates navigate an increasingly competitive job market, this study provides valuable insight into which metropolitan areas offer the best opportunities.
While traditional hotbeds like San Francisco and New York still stand out, emerging tech hubs and more affordable cities are also proving to be attractive options. Raleigh, Baltimore and Austin all offer a promising combination of high employment rates, competitive wages and affordable cost of living. However, graduates should consider all factors when making a decision: industry presence, career growth potential and quality of life. Ultimately, the best choice will depend on personal priorities and career goals.
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