The graduate unemployment rate is one of the current issues being discussed by higher education scholars. College students spend their time and money in order to receive educational advantages unavailable to high school graduates. So if they face unemployment, they are more vulnerable to unfavorable economic conditions because they have already spent their resources pursuing higher education. This paper examines the reasons why college graduates are facing unemployment in the competitive market. There are several factors that explain their unemployment status, and this paper identifies each component at an individual level. With specific analysis of the unemployment phenomena, this paper provides direction for further research.