Lost in the Void: Young U.S. College Graduates Confront a Deepening Employment Crisis

Over the past two years, Rebecca Atkins submitted more than 250 job applications, only to feel as if each one vanished into a vast void. This grim reality reflects a troubling trend: the highest unemployment rate for recent college graduates in the United States in over a decade.

Atkins, 25, who graduated in 2022 with a degree in law and justice from a university in Washington, D.C., described the experience as “extremely dispiriting.” She shared, “I was convinced that I was a terrible person, and terrible at working.” Her frustration echoes that of many young graduates facing a harsh job market.

Currently, the unemployment rate for recent graduates stands at 5.8%, a level not seen since November 2013, excluding the spike during the COVID-19 pandemic. More concerning is that this rate remains persistently higher than the overall unemployment rate—a rare and troubling situation, according to analysts.

While the general U.S. unemployment rate has stabilized between 3.5% and 4% since the pandemic, the jobless rate for recent graduates continues to rise. Data from payroll firm Gusto reveals that hiring for new graduates dropped 16% in 2025 compared to the previous year, signaling a steady decline.

Experts attribute this trend to cyclical post-pandemic hiring slowdowns, especially in industries that traditionally hire large numbers of recent grads, such as technology, finance, and business information services. Additionally, ongoing economic uncertainties during the early days of the Trump administration have contributed to companies’ cautious approach toward expanding their workforce.

This environment offers little comfort to recent graduates, many burdened with significant student loan debt, as they struggle to find their first full-time roles. Atkins shared her experience: “All of the jobs that I wanted, I didn't have the requirements for—often entry-level jobs would require you to have four or five years of experience.” Like Atkins, many young adults have had to accept part-time or unrelated jobs to stay afloat, making the transition to their chosen careers even more difficult.

Matthew Martin, a senior U.S. economist at Oxford Economics, described this as an “outlier” situation. “You'd expect that white-collar positions would not be as exposed to cyclical downturns as other jobs,” he noted. Yet, job openings in professional and business services have fallen more than 40% since 2021, with technology jobs particularly hard hit.

Martin pointed to artificial intelligence (AI) as a possible factor impacting entry-level positions. “The sheer volume of decline also points to the impact of AI,” he said, suggesting that automation might be reducing demand for certain roles traditionally filled by new graduates.

Gregory Daco, chief economist at EY-Parthenon, emphasized that the slowdown in tech hiring disproportionately affects recent graduates. He also noted that policy uncertainties under President Trump, including shifts in trade and tax policies, have led many firms to freeze or slow their hiring decisions.

However, Daco cautioned against attributing the hiring slowdown solely to AI. “Many firms are still in the early stages of adopting these new technologies,” he explained, adding that it’s premature to assume AI has already caused widespread job losses at the entry level.

The rising cost of education compounds the difficulties for recent graduates. The U.S. is among the most expensive countries for undergraduate degrees, with average annual costs exceeding $27,000. In 2020, over a third of undergraduates took federal loans to cover these expenses, leaving many graduates with average debts nearing $30,000.

Katie Bremer, 25, who graduated in 2021 with degrees in Environmental Science and Public Health, recounted her own struggles. It took her more than a year to secure a full-time job—and even then, it was outside her field. To make ends meet, she supplemented her income with babysitting. “I felt like I was constantly working,” she said. “It seems overwhelming, looking at the costs, to try and make your salary stretch to cover all the milestones you’re supposed to reach in young adulthood.”

Unfortunately, the near-term outlook is bleak. Analysts warn that the labor market for new graduates may deteriorate further before improving, potentially forcing students to reconsider their choice of majors or career paths.

Martin summarized the sentiment: “It’s likely to get worse before it gets better.” As for Bremer, watching her peers struggle with debt and underemployment fuels her concern for the future. “There have been times where I’ve thought, ‘How is my generation going to make this work?’” she admitted, reflecting a broader anxiety felt by many young Americans entering the workforce today.