Caleb Hammer, a prominent financial advisor and social media influencer, is drawing attention to the challenges faced by recent university graduates in today’s economic landscape. Known for his straightforward and sometimes abrasive delivery on his show “Financial Audit,” Hammer has a soft spot for the current cohort of graduates, who he believes are entering one of the toughest job markets in U.S. history.
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Recent data from the Federal Reserve Bank of New York reveals that the unemployment rate for recent college graduates stands at around 5.6%, significantly higher than the 3.1% rate for college-educated workers aged 22 to 65. Recognising this harsh reality, Hammer expresses his empathy for new graduates, stating, “I feel bad. I want to give them a hug.” He acknowledges the difficulty in providing definitive advice to students who are entering the workforce amid economic challenges.
Despite the grim backdrop, Hammer offers several pieces of guidance for graduates to consider as they prepare to embark on their professional journeys. His first recommendation focuses on the financial implications of attending college. He urges prospective students to pursue their education as affordably as possible. “Try to go to college for cheap. Go to community college. There’s nothing wrong with it,” he advises, emphasising the importance of minimising student debt.
Hammer highlights a crucial principle: students should aim to borrow no more than their potential first-year salary in order to manage the return on their investment wisely. This strategy underscores the importance of making informed decisions regarding both the choice of institution and the selection of a course of study.
Equally significant is Hammer’s perspective on degree choices. He strongly cautions against pursuing what he terms “bulls—t degrees,” or qualifications that lack a clear path to rewarding employment. “Don’t get a bulls—t degree, which so many people do,” he asserts, advocating for a pragmatic approach to education. He encourages students to seek majors that offer a solid return on investment, understanding that arts and humanities can be valuable but often come with less immediate job market demand.
Drawing from his own experience as a music composition major, Hammer emphasises the necessity of making cost-effective choices. He notes, “A lot of people end up going to their dream, four-year university or going to a private university, and borrowing way more than the expected return on the investment for those degrees would reasonably make sense for.” He stresses that students pursuing degrees in fields that are traditionally less lucrative should consider starting their education at community colleges and then transferring to four-year institutions, to minimise the financial burden.
Once students turn their tassels and graduate, Hammer advises them to brace for the reality of underemployment— a status where qualified individuals take jobs that do not require their full skill set. While he does not endorse this practice, he acknowledges that many graduates may need to accept less-than-ideal positions to pay their bills and gain valuable experience. He insists that building a resume is essential for competing in a crowded job market, stating, “If you’re just sitting on the sidelines forever, just having a degree itself isn’t going to be what gets you to compete against other high-skilled individuals that have a longer resume.”
The notion of landing a ‘dream job’ as a recent graduate can be alluring, but Hammer stresses that financial stability should take precedence. “Working toward paying down your debt or building an emergency fund is nicer,” he reiterates, reminding graduates that economic realities can overshadow idealistic career aspirations.
As graduates navigate this difficult period, Hammer’s straightforward advice could serve as a practical guide in a challenging economic climate. Balancing educational choices, financial realities and employment expectations will be essential for students entering the workforce in the coming months. With Hammer’s encouragement to remain grounded and realistic, recent graduates may find themselves better equipped to tackle the hurdles ahead.