University graduates in the US and UK have seen their wage premium over non-graduates shrink by nearly 10% over four years—the first sustained decline since the 1970s. This decline is occurring not due to oversupply of graduates, but because of shifting economic and technological demand. AI and automation may be suppressing wage growth in knowledge-work roles that traditionally commanded higher graduate salaries, even in STEM fields. This signals a fundamental reassessment of the degree's value as a labor market signal.