Archive · 28 May 2025
US Grads Face Job Market Challenges: Unemployment on the Rise
Many recent college grads are struggling to find jobs.
The job market is changing because of AI.
Companies aren't hiring as many new workers.
Also, there are too many people with degrees in fields where jobs are scarce.
Those looking for a job are finding it harder to enter the workforce.
Because of this, unemployment rates have increased, especially for recent graduates.
Unemployment for recent grads (ages 22-27) has risen sharply.
Tech sector hiring has slowed, affecting entry-level roles.
AI automation is impacting jobs typically held by new graduates.
Many unemployed graduates are new entrants to the labor market.
Oversupply of graduates in contracting fields contributes to the issue.
- Who
- Recent college graduates aged 22-27, tech companies.
- What
- Increased unemployment among recent college graduates.
- When
- Since mid-2023, with data from Oxford Economics, May 2025.
- Where
- Primarily in the US job market, particularly in the tech sector.
- Why
- Slowdown in tech hiring, AI automation, and oversupply of graduates.
Recent Graduates
Evolving Job Market
Employment Prospects
Recent Graduates
Facing challenges finding employment.
Evolving Job Market
Shift towards AI and related skills.
- Recent Graduate Unemployment Rate
- Around 6% in recent reports (Oxford Economics, May 2025)
- Graduate Unemployment Rise
- Increased by 1.6 percentage points since mid-2023
- Tech Job Openings Decline
- Dropped by over 40% since 2021, according to Oxford Economics.
- Rise in Graduate Unemployment
- 85% attributed to new labor market entrants
- Employment Drop for 22-27 Year Olds in Computer Science
- Down 8% since 2022