New college graduates in the United States are entering one of the most challenging job markets in over ten years, as hiring slows and economic uncertainty continues to weigh on employers, the Associated Press reports.
For many young professionals, securing a foothold in the workforce has become increasingly difficult despite strong academic backgrounds and relevant experience.
Palwasha Zahid, 25, recently completed a master’s degree in data analysis and relocated to California’s Bay Area, near the heart of the tech industry. Despite her qualifications and proximity to leading companies like Google, Apple, and Nvidia, she has yet to land a job in her field.
“I never imagined it would be this difficult just to get a foot in the door,” Zahid said.
The unemployment rate for recent college graduates aged 22 to 27 reached 5.8% in March — the highest since 2012, excluding the pandemic — and stands well above the national rate of 4.2%. Economists and Federal Reserve officials have flagged the trend as a potential warning sign for the broader economy. The slowdown in hiring is attributed in part to businesses delaying workforce expansions due to uncertainties surrounding President Donald Trump’s tariff policies and ongoing fiscal negotiations.
Brad Hersbein, a senior economist at the Upjohn Institute, noted that entry-level positions are often the first affected during times of economic ambiguity.
“Young people are bearing the brunt of a lot of economic uncertainty,” he said.
Artificial intelligence is also a factor, with some industry observers pointing to its growing influence in traditionally white-collar sectors like information technology, finance, and legal services. Job growth for younger professionals in computer science and math-related roles has declined by 8% since 2022, according to Oxford Economics. In contrast, employment for older workers in the same fields has edged up slightly.
While AI’s impact on hiring remains under debate, some companies are openly factoring it into staffing decisions. Shopify CEO Tobi Lutke and Amazon CEO Andy Jassy have both indicated that AI could reduce demand for certain roles in the near future.
Despite these shifts, many economists caution against attributing the job market challenges solely to AI. Kory Kantenga, head of economics for the Americas at LinkedIn, said there is no widespread evidence that AI is disproportionately affecting younger job seekers. Instead, he and others point to broader economic conditions, including the Federal Reserve’s recent interest rate hikes, which have cooled hiring in sectors like tech that had previously grown rapidly.
Indeed, job postings for software development roles have declined by 40% compared to four years ago, according to job site Indeed. This has left many students who pursued tech degrees amid booming demand now facing a far less favorable landscape.
Lexie Lindo, 23, graduated from Clark Atlanta University with a business degree and a strong academic record, including multiple internships. Despite applying for over 100 jobs, she received few responses and has since returned to school to pursue a master’s in supply chain studies.
“My resume is full, there’s no gaps or anything,” Lindo said. “It’s just, ‘OK, so what else are you looking for?'”
While long-term data still supports the value of a college degree — graduates typically earn more and experience lower unemployment over their careers — the current moment is testing the patience and resilience of many recent grads.
For Zahid, who once felt optimistic about her career prospects, the transition from classroom to career has been unexpectedly difficult. Her diploma remains unframed.
“I will put it up when I actually get a job, confirming that it was worth it all,” she said.
