Job Market Tougher for Recent Graduates as Unemployment Hits Four-Year High

The job market is becoming more challenging for recent college graduates, as evidenced by rising unemployment rates. In March 2025, the unemployment rate for those aged 22 to 27 reached 5.8%, the highest level in four years, according to the Federal Reserve Bank of New York. While the overall unemployment rate in the U.S. remained steady at 4.2%, recent graduates are facing particular difficulties in securing employment.

Economists attribute part of the struggle to broader societal changes, including the increasing use of artificial intelligence, which is affecting the types of jobs available. Despite solid job growth in May 2025, with 139,000 positions added, businesses are hesitant to expand their workforce due to economic uncertainty and the ongoing trade war under President Trump’s administration.

These developments have created a tough environment for entry-level job seekers, as they must navigate a labor market that is evolving rapidly due to both technological advancements and shifting economic conditions.