Some metros are significantly better than others for recent college graduates, according to a new study by payroll provider ADP, called ‘You’ve graduated, now what?’ Good question.
In the report, its authors look at the post-college journey of recent graduates by examining ADP data representing more than four million people aged 20 to 29 at more than 27,000 U.S. employers, from January 2019 through April 2024.
From this, they have determined the best metros for college graduates to look for a job in.
This research graded 55 U.S. metro areas with at least one million residents by comparing them on three characteristics: annual wages, hiring rates and affordability.
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It found that jobs requiring a bachelor’s degree or equivalent showed robust growth since 2019, with hiring rates peaking during 2022.
But by April 2024, hiring rates for jobs requiring considerable or extensive preparation (aka bachelor’s degree or graduate school) had fallen below their pre-pandemic levels. This means recent college graduates have a more difficult search ahead than their predecessors.
The report found that Cleveland-Elyria, Detroit-Warren-Dearborn, Louisville-Jefferson County and Tucson all had affordable metros with robust hiring, but lower wages.
And while it’s tempting to be drawn to high wages only, expensive metros with high wages, like San Jose-Sunnyvale-Santa Clara, Seattle-Tacoma-Bellavue, Chicago-Naperville-Elgin and Boston-Cambridge-Newton, all unfortunately have low hiring rate for workers aged 20 to 29.
The San Francisco Bay Area is another good example. It boasts the highest pay, but it’s also the least affordable, with a hiring rate that’s just above the median for recent grads.
Metros with low rankings for grads
Rochester, New York nabs the lowest spot with the lowest hiring rate, wages below the 20th percentile, and only middling affordability. And although Greater New Orleans is more affordable, and better paying, it hires at a similarly low rate. While Fresno, in California’s Central Valley, ranks low on all three metrics.
Greater Virginia Beach — better known as Hampton Roads — has an above median cost of living, but also pays new grads less than 98% of the metros surveyed. This is in contrast to expensive metros with low hiring rates, like San Jose or Seattle, which pay quite well.
Metros that are just right
Out of all the metro areas examined, Raleigh, North Carolina, comes in first. Raleigh has the highest hiring rates for prospective new grads, and its moderate affordability pairs well with earnings above the 80th percentile.
Raleigh is known as the “Research Triangle” after the research park that is positioned between the University of North Carolina at Chapel Hill, Duke University in Durham, and North Carolina State University.
More than 300 businesses, the majority of which are in the science and technology fields, have their headquarters at The Triangle, the biggest research park in the country.
Greater Baltimore ranks second for similar reasons. A significant percentage of jobs are in the fields of science, technology, engineering, and mathematics because there are prestigious universities like Johns Hopkins, which also houses the Johns Hopkins Hospital, and the University of Maryland in the area.
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Third is Greater Austin, due to its diverse economy, led by high employment in the tech sector, which has made it one of the fastest-growing U.S. metro areas in recent decades.
Overall, Atlanta is ranked fourth, Charlotte is fifth, New York is sixth, San Francisco is seventh, Cleveland is eighth, Nashville is in ninth place, and Indianapolis comes in tenth.
While completing the top twenty are Denver, Detroit, Washington D.C. – in 13th place, San Jose, Louisville, Miami, Dallas, Providence, Columbus and Birmingham, Atlanta.
As recent college graduates navigate an increasingly competitive job market, this study provides valuable insights into which metro areas offer the best opportunities.
While traditional hotspots like San Francisco and New York still feature prominently, emerging tech hubs and more affordable cities are proving to be attractive alternatives. Raleigh, Baltimore, and Austin all offer a promising blend of high hiring rates, competitive wages, and reasonable living costs. However, graduates should consider all factors, including industry presence, career growth potential, and quality of life, when making their decision. Ultimately, the best choice will depend on individual priorities and career goals.
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