This year’s new college graduates are facing a significantly tougher job market compared to previous years, exacerbated by a rising unemployment rate of 5.8% in March, up from 4.6% a year earlier. Underemployment also increased, with 41.2% of recent graduates working in jobs that don’t require a degree. Economists highlight a sense of paralysis among employers and job seekers, impacting entry-level prospects. Internships — typically a reliable pathway for new graduates — are lagging, with postings down significantly from last year.
As the Trump administration reinstates federal student loan repayments, many graduates are simultaneously grappling with financial uncertainty. A report indicates that 20.5% of federal loan borrowers are 90 days or more past due, marking a notable rise in potential defaults. This crackdown on debt coincides with a less favorable labor landscape, as broader economic turbulence and trade policies contribute to employer caution in hiring new graduates.
The landscape is further complicated by a decrease in companies’ hiring expansion plans for entry-level positions. Recent surveys revealed the proportion of employers eager to broaden their hiring for new graduates has dropped, reaching its lowest point since the pandemic. Salary projections for the class of 2025 showed mixed results, with some majors facing pay reductions.
Amid this uncertainty, many graduates are readjusting their expectations, with over half abandoning their initial “dream job” aspirations. The prevailing mood, particularly for seniors like psychology major Julia Abbott, is one of anxiety as they approach graduation without clear career prospects, making it difficult to celebrate their academic achievements.
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