Graduates facing tougher entry market
A Guardian report finds many American college graduates are seeing longer job searches and fewer entry-level openings amid changes driven by AI, with candidates describing a shrinking market for junior roles. The report suggests entry-level hiring is becoming more selective even as firms invest in other parts of their businesses. (theguardian.com)
Many United States college graduates are taking longer to find first jobs as entry-level openings shrink and employers screen harder for junior roles. (newyorkfed.org) The Federal Reserve Bank of New York said the unemployment rate for recent college graduates rose to about 5.7% in the fourth quarter of 2025, up from 5.3% in the third quarter. Its underemployment rate — graduates working in jobs that often do not require a degree — reached 42.5%, the highest since 2020. (newyorkfed.org) Employer surveys show a mixed market rather than a total hiring freeze. The National Association of Colleges and Employers said companies planned to hire 7.3% more Class of 2025 graduates than Class of 2024 graduates, but a bigger share of employers rated the market only “fair” or “poor” than a year earlier. (naceweb.org) That gap helps explain why graduates can hear that hiring is up and still struggle to land interviews. National totals can rise even as openings narrow in specific tracks, companies cut junior slots, and more candidates chase fewer true starter jobs. (naceweb.org) (newyorkfed.org) Hiring is also shifting toward proof of skills instead of broad “entry-level” recruiting. The National Association of Colleges and Employers said 64.8% of employers in its Job Outlook 2025 survey used skills-based hiring for new entry-level hires, most often in screening and interviews. (naceweb.org) In tech, the bottom rung has thinned further. SignalFire said Big Tech companies cut new-graduate hiring 25% in 2024 from 2023, while startups cut it 11%, even as midlevel and senior hiring recovered faster. (signalfire.com) Indeed’s Hiring Lab found a similar tilt away from beginner roles across the broader market. Between August 2024 and August 2025, postings with junior job titles fell 7% while senior-level postings edged up about 4%. (hiringlab.org) Employers are still spending in other areas. The National Association of Colleges and Employers said more than 40% of respondents expected to raise salaries for bachelor’s degree hires, and more than half planned to offer signing bonuses to at least some Class of 2025 graduates. (naceweb.org) The result is a market that still rewards graduates who break through, but offers fewer clean on-ramps for people just starting out. The New York Fed notes many underemployed graduates do move into better roles with experience, but right now more of them are taking that detour first. (newyorkfed.org)
