Caleb Hammer Says New Graduates Are Entering One of the Toughest Employment Markets in Years

For millions of young people, graduating college marks the exciting beginning of a new chapter. However, for many members of the Class of 2026, the workforce is being complicated by economic uncertainty, high interest rates, questions surrounding unemployment, and a competitive hiring environment.

Financial influencer and YouTube personality Caleb Hammer believes today's graduates are facing unusually difficult circumstances. In a recent interview, Hammer said, "For college graduates, it is one of the worst unemployment and underemployment in basically the history of college education in the United States."

While Hammer has built a reputation for his blunt, often brutal, financial advice on his popular Financial Audit program, he struck a noticeably different tone when discussing recent graduates. "I feel bad. I want to give them a hug," Hammer said.

Caleb Hammer’s recent advice focuses on three things that he believes the next generation needs to remember. Find out more about what Hammer says about personal finance for students below.

Advice Starts Before Students Even Enroll

"Try to go to college for cheap," Hammer advised. "Go to community college. There's nothing wrong with it." This student debt tip focuses on what students do long before they pick up their cap and gown. Instead, he believes that smart financial management begins when choosing which college to attend as a freshman.

He argues that students should approach higher education with affordability as a primary consideration. Community colleges, in-state public universities, and scholarship opportunities can significantly reduce the amount of debt students carry into adulthood.

One of Hammer’s core principles holds that students should avoid borrowing more than they expect to earn in their first year after graduation. The goal is to prevent student loan obligations from overwhelming early-career earnings.

Choosing a Degree With Future Opportunities in Mind

Hammer’s second student debt tip focuses on choosing a degree that offers significant earning potential. This doesn’t mean that he believes that every student should pursue medical or law degrees. Instead, it’s about considering the proportion of monthly income that a student borrower will have to pay to meet monthly debt obligations.

He warns against pursuing what he refers to as “BS degrees,” unless they can be obtained for an extremely low cost. Hammer serves as his own illustration for this concept. Hammer earned a degree in music composition and has openly discussed the challenges of translating that credential into a high-paying career immediately after graduation.

On a larger scale, Hammer’s point is not that students should abandon their interests. Instead, he cautions that they should understand the financial realities associated with different career paths.

The Reality of Underemployment

Hammer’s final piece of advice focuses on recent graduate unemployment. Going against conventional wisdom, Hammer warns that taking the first job offer they receive might not be ideal. Many graduates enter the workforce expecting to immediately land positions aligned with their degrees and long-term career goals. In reality, economic conditions often dictate otherwise.

Hammer encourages students to remain flexible and focus on resume building in the years immediately following graduation, even if that requires them to work in a field that may not align with their degree. "It's just a bad time, so that is brutal. There's no perfect solution," he said.

This piece of advice regarding personal finances for students highlights a trend that economists refer to as “underemployment.” The term refers to people working in fields that may not utilize the graduate’s full skills. Depending on local market factors, some recent graduates are taking jobs that don’t require a college degree at all. While underemployment can be frustrating, many career experts note that early work experience often serves as a stepping stone rather than a permanent destination.

For students facing student loan debt, this may be the only option available to them. According to Hammer, some level of income is better than none at all, a fact that graduates may need to keep in mind when looking for their first paid position.

Looking Beyond Graduation

Ultimately, Caleb Hammer’s advice focuses on the fact that while graduation is a major milestone, it’s not a defining moment, especially when it comes to long-term financial management.

Despite the challenges confronting recent graduates, Hammer remains hopeful that persistence and smart decision-making can help students build successful futures. As Hammer put it, there may be "no perfect solution" to the current employment environment. Still, there’s hope for recent graduates who are entering their next chapter.

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