Hiring market remains tight

Recent college graduates are running into a weaker job market even as overall United States hiring keeps growing. The Federal Reserve Bank of New York said unemployment for recent graduates rose to 5.7% in the fourth quarter of 2025, and underemployment hit 42.5%, the highest since 2020. (newyorkfed.org) That pressure is showing up in individual job searches this spring. WBUR reported on April 15 that Massachusetts seniors and new graduates were sending out scores of applications, widening their search beyond first-choice fields, and bracing for longer hunts than students expected a year ago. (wbur.org) The broader labor market is not collapsing, but it is getting harder to break into. The United States added 178,000 jobs in March 2026 and the unemployment rate held at 4.3%, while Bureau of Labor Statistics data showed hires fell to 4.8 million in February, the lowest hires rate since April 2020. (bls.gov 1) (bls.gov 2) That mix leaves entry-level applicants competing in a market with jobs on paper but fewer actual starts. The Bureau of Labor Statistics said job openings were 6.9 million in February, yet hiring slowed and quits stayed subdued at 3.0 million, a sign workers were not moving around as freely as in the post-pandemic boom. (bls.gov) Several reports tie the squeeze to three forces at once: more degree holders chasing a narrower set of white-collar openings, employers screening for directly usable skills, and companies using artificial intelligence tools to automate parts of junior work. American Bazaar’s April 14 report described rising underemployment among young graduates through that lens. (americanbazaaronline.com) Recruiters have also been saying the problem is not only the number of applicants. LinkedIn’s 2025 Work Change Report, cited by Human Resource Dive, found nearly 40% of job seekers were applying more but hearing back less, while 73% of human resources professionals said fewer than half of applications matched their requirements. (hrdive.com) Employers are still posting some early-career roles, but many ask for work that sits close to revenue and execution rather than pure concept work. A Shopee listing for a 2026 regional marketing design internship called for support on campaign assets and collaboration with marketing teams, a reminder that some design jobs are being framed as commercial and cross-functional from day one. (bebee.com) Career-services groups are hearing the same caution from employers. The National Association of Colleges and Employers said in its Job Outlook 2026 materials that 13.3% of jobs now require artificial intelligence skills and that employers continue to emphasize internships, prior work experience, and the ability to connect coursework to job-ready skills. (naceweb.org) That is why many seniors are applying earlier, broadening targets, and taking internships or temporary work while they keep looking. For the class entering the market in 2026, the first job search is stretching longer and landing less often in the job they trained for. (wbur.org) (newyorkfed.org)