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A college degree continues to be a valuable asset for many in advancing their financial prospects, but the choice of major now plays a more significant role than the institution attended. Degrees that once guaranteed strong career opportunities no longer offer the same assurance in today’s evolving job market.
Recent data from the New York Federal Reserve reveals that in the second quarter of 2026, 42% of recent college graduates were underemployed, working in positions that typically do not require a bachelor’s degree. Early career median earnings for graduates stood at $58,000, but this figure varies widely depending on the field of study.
Here are 10 college majors that were once highly regarded but have seen a decline in their economic value:
- Liberal Arts
Once accounting for nearly 15% of bachelor’s degrees in 2005, liberal arts now represent just 8.4% of degrees awarded. Graduates face a 54.6% underemployment rate and median early-career earnings of $45,000.
Experts suggest supplementing liberal arts studies with quantitative skills like statistics and data analysis to improve prospects.
- English
While strong communication skills remain in demand, English majors face a 48.5% underemployment rate with median early earnings around $48,000. The rise of AI in writing roles may further limit opportunities, and the return on investment for English degrees tends to be comparatively low.
- Fine Arts
With 58.9% underemployment and median earnings of $45,000, fine arts graduates often struggle financially. Graphic design jobs, a common career path for these majors, are projected to decline by 2% over the next decade due to automation and AI efficiencies.
- Performing Arts
This major has one of the highest underemployment rates at 63.9%, with early-career earnings averaging $44,000. Given the high cost of programs like drama at some universities, the financial return can be negative.
Notably, formal education is often not required for musicians and singers.
- Foreign Languages
Though unemployment is low at 1.6%, 54% of foreign language graduates are underemployed, earning a median of $48,000. AI translation tools have increased productivity but may limit future job growth, which is expected to rise modestly by 2% over ten years.
- Psychology
With nearly half (48.3%) underemployed and early earnings around $45,000, psychology majors often face low returns unless they pursue graduate education. Advanced degrees, typically required for psychologists, come with significant debt burdens, with median education debt reaching $65,000 for doctoral students.
- Sociology
Sociology-related jobs are limited and often require a master’s degree. Graduates frequently work in related fields such as policy analysis or research.
Underemployment stands at 52%, with median earnings near $49,900.
- Communications
While versatile, communications degrees do not lead to a specific career path, resulting in a 53% underemployment rate and median earnings of $52,000. Only slightly more than half of graduates work in jobs requiring a bachelor’s degree.
- Journalism
Employment in journalism has declined sharply due to changes in media industries, with a 26% drop in newsroom jobs from 2008 to 2020 and a projected further 6% decline by 2035. Early career earnings average $49,000, with mid-career salaries rising to $87,000 for some.
- Education
Once the most popular major, education degrees have decreased in prevalence. While underemployment for elementary education graduates is low at 16.2%, starting salaries are modest at $45,000.
Teachers earn significantly less than peers with other degrees, and wage gaps have widened over time.
Key Takeaway
These degrees still offer value, and many graduates succeed in their chosen fields.
However, the credential alone is less often a guarantee of economic success. Students should weigh potential earnings, underemployment risks, graduate school requirements, and overall costs when selecting a major.
For both current students and recent graduates, gaining practical experience through internships and hands-on work is critical. Employers increasingly prioritize these skills in their hiring decisions, often more than additional degrees. Building career-readiness skills can expand job opportunities and reduce the need for costly further education.
Smart Money Moves for Everyone
Regardless of your financial situation, there are ways to improve your financial health:
- Boost Your Income: Explore side hustles that fit around full-time jobs or find legitimate ways to keep more money in your pocket.
- Grow Your Savings: Take advantage of compound interest by starting to save early and consider professional financial advice to plan for retirement.
- Seize Opportunities: Maximize discounts and benefits, especially if you are a senior, and shop around for essentials like car insurance to save hundreds. Be cautious of hidden expenses that can erode your finances over time.
By making informed decisions about education and finances, individuals can better navigate the challenges of today’s economy and set themselves up for long-term success.