Hiring slowdown hits grads
U.S. job growth slowed in March with nonfarm payrolls up just 50,000 and unemployment rising to 4.4%, part of a broader cooling in the labor market. (financialcontent.com). Bloomberg reported that nearly 43% of young American graduates are underemployed, reflecting tougher early‑career conditions. (bloomberg.com). Separate reporting put tech layoffs in Q1 above 60,000, adding competition for entry-level roles. (northpennnow.com)
The job market for new graduates is getting tighter, even as the broader United States labor market still adds jobs. The Federal Reserve Bank of New York said underemployment for recent college graduates rose to 42.5 percent in the fourth quarter of 2025, the highest level since 2020. (newyorkfed.org) The same New York Fed data showed unemployment for recent graduates ages 22 to 27 climbed to about 5.7 percent in late 2025, up from 5.3 percent in the third quarter. Bloomberg reported on April 13 that nearly 43 percent of young United States graduates are underemployed, meaning they are working in jobs that typically do not require a bachelor’s degree. (newyorkfed.org) (bloomberg.com) For the overall economy, the latest official picture was weaker than the post-pandemic hiring boom but not as soft as some secondary reports suggested. The Bureau of Labor Statistics said on April 3 that nonfarm payrolls rose by 178,000 in March and the unemployment rate was 4.3 percent. (bls.gov) That gap matters for graduates because entry-level hiring often slows before the headline labor market breaks. The New York Fed’s series shows recent graduates now face a higher unemployment rate than college-educated workers ages 22 to 65, whose jobless rate was 3.1 percent. (newyorkfed.org) (forbes.com) The cooling has shown up in employer surveys as well as government counts. The Federal Reserve’s Beige Book said in March that overall economic activity increased only slight to moderate, while January’s Beige Book said employment was unchanged on balance amid mixed labor demand and an easier hiring environment. (federalreserve.gov 1) (federalreserve.gov 2) Tech has added another layer of competition for first-job seekers. TrueUp’s public layoff tracker said that as of April 14, 2026, tech companies had announced 230 layoffs this year affecting 91,739 people, while separate reporting on April 13 said first-quarter tech layoffs had already topped 60,000. (trueup.io) (northpennnow.com) Those cuts do not just remove jobs inside technology companies. They also send experienced software engineers, recruiters, designers, and analysts back into the market at the same time many employers are trimming junior hiring. (trueup.io) (bloomberg.com) The pattern is not uniform across majors. Forbes, citing New York Fed data in February, reported that underemployment was highest in fields including criminal justice at 65.8 percent and performing arts at 63.9 percent, while technical majors generally posted lower rates. (forbes.com) (newyorkfed.org) For graduates sending out applications this spring, the market is not shut, but it is more crowded than it was a year ago. The clearest signal is that more degree holders are taking jobs below their education level while waiting for employers to start hiring more freely again. (newyorkfed.org) (bls.gov)
