Abstract: Graduate underemployment has emerged as a central concern in higher education policy discourse, with widely cited estimates suggesting that more than half of recent college graduates work in jobs not requiring their degree. However, these alarming statistics may obscure a more complex reality. This article examines three distinct methodological approaches to measuring underemployment among bachelor's degree holders: entry-level education assignments, realized labor market matches, and earnings premium adjustments. Drawing on American Community Survey data (2018–2022) and Bureau of Labor Statistics occupational classifications, the analysis reveals that underemployment rates vary substantially—from 25 percent to 47 percent among recent graduates—depending on methodology. The findings suggest that relying exclusively on entry-level education requirements overlooks critical labor market dynamics, including educational diversity within occupations, upskilling trends, and the substantial earnings premium bachelor's degree holders command even in occupations classified as requiring less education. While underemployment remains a legitimate concern representing potential human capital underutilization, oversimplified measures risk distorting policy responses and obscuring the continued labor market value of higher education credentials.
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