Recent college graduates in the United States are encountering the most challenging job market in over a decade, with unemployment rates for degree holders aged 22 to 27 reaching their highest levels since the 2020 pandemic crisis. This demographic's unemployment rate has surpassed the national average by approximately 1.8 percentage points, marking the largest gap in at least ten years. The slowdown in hiring for entry-level positions has been attributed to multiple factors including economic uncertainty, ongoing tariff impacts, and the increasing adoption of artificial intelligence (AI) by employers, which is replacing some entry-level roles. While AI adoption is still in early stages and its full macroeconomic impact remains uncertain, it has contributed to reshaping the job market and creating new challenges for young graduates. Additionally, unemployment has surged more notably among recent male graduates, with their rate rising over 2 percentage points in the past year to 7%, the highest since 2020 and the highest outside the pandemic period in 13 years. Despite a rebound in entry-level tech hiring since mid-2024 and the potential for AI to generate as many tech jobs as it eliminates, the overall environment remains difficult for new college graduates seeking employment.
AI is reducing redundancies and making it hard for graduates to find their place as efficiency increases. https://t.co/ty6U1L0nHQ
College degrees have zero EV now. AI has commoditized common knowledge. The only alpha resides in niche expertise... for now. https://t.co/uF7XNlE4mr
Recent college graduates currently have a higher unemployment rate than workers overall. https://t.co/V0BmRUeB7R