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2mo ago

New Graduate Unemployment Hits Decade High as Entry-Level Hiring Collapses

Policy uncertainty under President Trump’s administration has prompted firms to freeze many entry-level roles, exacerbating fears about automation eliminating first-job opportunities.

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At 5.8 percent, unemployment for young, recent graduates from US universities is higher than it has been since November 2013
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Infographic with chart showing the unemployment rate of recent US college graduates compared to the rate for all workers from 1990 to 2025

Overview

  • Unemployment for recent college graduates rose to 5.8 percent in May 2025, the highest outside Covid-era spikes since November 2013 and well above the 3.5–4 percent overall rate.
  • Year-on-year hiring of new graduates fell 16 percent in 2025, while professional and business services job openings have declined by more than 40 percent since 2021.
  • Many firms have slowed or frozen recruitment in technology, finance and business sectors amid shifting trade, tax and regulatory policies under the Trump administration.
  • Average annual tuition of $27,673 and typical graduate debt of $29,550 add financial pressure as numerous entry-level postings now mandate three to five years of prior experience.
  • Early-stage adoption of AI tools is feeding employers’ hesitancy, with analysts warning that automation could further erode first-job prospects for new graduates.