Current:Home > MarketsThese are the best and worst U.S. cities for new college grads-LoTradeCoin
These are the best and worst U.S. cities for new college grads
View Date:2024-12-23 21:23:29
While it's hard for young people to resist the appeal of large cities and their hefty paychecks, smaller cities can sometimes offer more job prospects and overall affordability, making them better picks for new graduates.
For those reasons, the top city for new degree holders isn't New York or San Francisco, or any other similarly popular metro area whose main drawback is its high cost of living, according to a new study from the ADP Research Institute (ADPRI). Taking into account a number of factors, including average wages, overall affordability and hiring rates, Raleigh, North Carolina, takes the No. 1 spot on the management services company's list of best places for young graduates to start their careers. For its ranking, researchers looked at ADP data on more than 4 million 20- to 29-year olds at more than 27,000 U.S. employers, from January 2019 through April 2024.
"The basic idea is these are the questions new grads ask when planning their job search. They ask, 'Where am I likely to find a job? What kind of salary will I earn?' and 'How far will it go?'" said Ben Hanowell, ADPRI's director of people analytics research. "We put the three things together to find out where they can find the best combination of wages, affordability and robust hiring."
Researchers at ADPRI found that Raleigh is relatively affordable, offers wages above the 80th percentile, and has the best hiring rate for likely new graduates of all the metro areas studied. Nicknamed the research triangle, Raleigh sits between three universities and is home to roughly 300 science and technology companies.
Great average salary, but can I even get a job?
The study takes into account that in some cities, though young workers could command higher wages, job opportunities are fewer than in other places and the cost of living is high, meaning that their salaries wouldn't take them very far. As a result, these types of cities were deemed less desirable than those with decent salaries, but plentiful job opportunities for workers with less experience and relatively low costs of living.
"There are metro areas where you could command high wages as a recent grad, but they're not affordable and hiring isn't robust, so that's the trade-off you're making," Hanowell said.
As an example, he pointed to Seattle, Washington, where wages are higher than 87% of the 55 biggest U.S. metro areas, but has a low hiring rate compared to other cities and is relatively unaffordable.
"The median wage is an estimated $56,000, but once that's adjusted for the cost of living, it feels like $49,000. That's one way to look at these trade-offs," Hanowell said.
By contrast, Tucson, Arizona, has a hiring rate that's greater than more than three-quarters of other metro areas, and is also more affordable than 84% of cities. "That's the opposite end of the trade-off," Hanowell said.
What's the sweet spot?
To be sure, the most suitable city for a new graduate depends on their individual preferences. For example, one individual might be willing to take a chance trying to land a job in a metro area that's expensive and has a low hiring rate, but where they can eventually command a high wage.
"They could think of the job they land as a stepping stone to greater things," Hanowell said. "Whereas another grad might care about affordability to start building their savings early, or they are risk-averse and want to know that the place they're going is a place where they can find a job."
Surprises among rankings
When wages, affordability and hiring rates are considered, four metro areas stand out as the most promising places for young grads to begin their careers, according to ADPRI data.
"What's surprising is these areas are not the traditional tech hubs or financial hubs you might think about for college grads," Hanowell said.
Lower-ranked cities were mostly dinged in the wage and job prospects category. While they may be relatively affordable places to live, wages and hiring rates are low. Take Rochester, New York, for example, which has the lowest hiring rate of all 55 metros for likely college graduates. Although its wages are in the 13% percentile among metro areas, and it's more affordable than nearly 70% of locales studied, its lackluster job prospects make it undesirable.
Here are the top 10 best and worst cities for new graduates, according to ADPRI.
Top 10 best cities for new graduates
- Raleigh, North Carolina
- Baltimore, Maryland
- Austin, Texas
- Atlanta, Georgia
- Charlotte, North Carolina
- New York, New York
- San Francisco, California
- Cleveland, Ohio
- Nashville, Tennessee
- Indianapolis, Indiana
Top 10 worst cities for new graduates
- Rochester, New York
- Virginia Beach, Virginia
- New Orleans, Louisiana
- Fresno, California
- Portland, Oregon
- Oklahoma City, Oklahoma
- Hartford, Connecticut
- Memphis, Tennessee
- Seattle, Washington
- Salt Lake City, Utah
Click here for the full rankings.
Megan CerulloMegan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
veryGood! (58241)
Related
- Auburn surges, while Kansas remains No. 1 in the USA TODAY Sports men's basketball poll
- Colombia moves to protect holy grail of shipwrecks that sank over 3 centuries ago with billions of dollars in treasure
- Taiwan scrambles jets, puts forces on alert as China calls new war games powerful punishment for the island
- UCLA police arrest young man for alleged felony assault in attack on pro-Palestinian encampment
- Will Trump curb transgender rights? After election, community prepares for worst
- Workers at Georgia school bus maker Blue Bird approve their first union contract
- American arrested in Turks and Caicos over ammo found in bag gets suspended sentence of 52 weeks
- U.K. review reveals death toll at little-known Nazi camp on British soil
- The Fate of Hoda Kotb and Jenna Bush Hager's Today Fourth Hour Revealed
- A Walk in the Woods With My Brain on Fire: Spring
Ranking
- Jason Kelce Offers Up NSFW Explanation for Why Men Have Beards
- Worker charged with homicide in deadly shooting at linen company near Philadelphia
- A man found bones in his wine cellar. They were from 40,000-year-old mammoths.
- Patrick Mahomes' Wife Brittany Mahomes Gives Health Update After Breaking Her Back
- Falling scaffolding plank narrowly misses pedestrians at Boston’s South Station
- Missing womens' bodies found buried on farm property linked to grandma accused in complex murder plan, documents show
- Missing womens' bodies found buried on farm property linked to grandma accused in complex murder plan, documents show
- Animal attacks reported across USA this spring. This piece of advice could save your life.
Recommendation
-
Flurry of contract deals come as railroads, unions see Trump’s election looming over talks
-
Say That You Love This Photo of Pregnant Hailey Bieber Baring Her Baby Bump During Trip With Justin
-
How Beyonce’s Mom Tina Knowles Supported Kelly Rowland After Viral Cannes Incident
-
What is Memorial Day? The true meaning of why we celebrate the federal holiday
-
Saks Fifth Avenue’s holiday light display in Manhattan changing up this season
-
The 180 Best Memorial Day 2024 Deals: Old Navy, Anthropologie, J.Crew, Kate Spade, Wayfair, Coach & More
-
Defense secretary tells US Naval Academy graduates they will lead ‘through tension and uncertainty’
-
A survivor's guide to Taylor Swift floor tickets: Lessons from an Eras Tour veteran