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In early 2025, entry‑level hiring took a downturn, as Federal Reserve of New York data showed the unemployment rate for recent college graduates soared to 5.8%—the highest since 2021—while overall college graduate unemployment stayed near 2.7%.
That rate reflects a widening gap between young graduates and their older counterparts, marking the broadest spread in three decades. Fields such as computer science and technology have been hit especially hard. According to Oxford Economics, weakened hiring in tech and finance—once reliable launchpads for new grads—has dragged on recent-degree job prospects. Barron’s reported that employment for computer science and math majors dropped 8% since 2022, while graduates in other fields saw preservation or slight gains.
This disruption extends into white‑collar roles like legal assistance and early software tasks, where automation has displaced many junior‑level positions. Overall, entry‑level job availability is down roughly 17% compared to 2019, while underemployment rates hover around 41% for graduates in their twenties. Hiring platforms report a 15% reduction in entry‑level listings, and applicants per open position have jumped about 30%. From the applicant’s perspective, resumes are now filtered by AI systems before reaching a human reviewer, making visibility in hiring more competitive than ever.
Although healthcare and hospitality still showed some job growth, the broader hiring environment remains weak. In May 2025, employers added 139,000 jobs—led by service‑sector increases—while manufacturing, retail, and construction lagged. Economists suggest that without growth in demand from tech or a large share of young workers leaving the workforce, recent‑grad unemployment will stay elevated for the foreseeable future.
Looking ahead, experts warn that competition for entry‑level roles is set to stay intense. Automation and AI efforts may further reduce openings, while educational inflation makes degrees less of a guarantee. For today’s graduates, networking, strategic positioning in growing sectors like health, and adaptability may offer the best chance in a job market that’s likely to remain crowded and evolving over the long term.
