The Class of 2025: Entering the Toughest Job Market in Years
A comprehensive analysis of the challenging employment landscape facing new graduates
A Daunting Assignment
Strong Appearance
The US job market appears strong: 4.2% unemployment, 52 months of job growth.
Bleak Reality
But for new college graduates, the reality is far bleaker.
Economist Assessment
Economists call it the worst market for grads since the height of the Covid-19 pandemic
Beneath the Surface: Trouble Brewing

AI Threat
AI leaders warn: white-collar jobs could be wiped out by automation
Hiring Decline
Entry-level hiring is down dramatically.
Business Paralysis
Business decision-making is paralyzed by a chaotic trade war and high interest rates.
Record-High Unemployment for Grads
For the first time since 1980, recent grads (ages 22–27, bachelor's or higher) have a higher unemployment rate than the national average
Since mid-2023, unemployment for grads jumped 1.6 percentage points—triple the national increase
Young Men Hit Hardest
8.2%
Ages 20-24 Unemployment
Nearly double the national average
9.6%
Young Men Unemployment
Up from 6.7% last year
23%
Entry-Level Hiring Decline
Since March 2020—worse than the 18% drop in overall hiring
A 'No Hire, No Fire' Market
Cautious Companies
Companies are cautious: hiring freezes, fewer layoffs.
Unemployment Claims
The number of people collecting unemployment checks hit a four-year high in May.
Extended Job Searches
Job seekers face longer, more grueling searches
The Human Toll: Hopelessness and Debt
It felt hopeless. It started to weigh heavily on me.
Grads like Jenna Macksoud applied to hundreds of jobs, hearing little back.
The Reality
Many are left unemployed, burdened with massive student debt.
The emotional toll of rejection after rejection creates a cycle of despair that's difficult to break.
AI: The Grim Reaper of Entry-Level Jobs?
AI Threat
Dario Amodei (Anthropic CEO): AI could wipe out half of all entry-level white-collar jobs, pushing unemployment to 10–20% within five years
Tech Jobs Declining
Computer science and math jobs for recent grads down 8% since 2022.
Differing Perspectives
Some experts say fears are overblown—workers may adapt, as with ATMs
Is College Still Worth It?
Rising Costs
The cost of a degree is skyrocketing, with debt piling up.
Shrinking Advantage
Degree holders still have lower unemployment than non-grads, but the gap is shrinking
Value Proposition
"At the end of the day, the rewards of having a degree still dwarf the costs."
Desperation and New Strategies
Moving Home
Some grads move back with parents
Gig Economy
Turn to side hustles and gig work
More Education
Consider additional degrees
Field Pivoting
Shift to in-demand fields like healthcare and education
Those opportunities have kind of vanished.
Parents are increasingly frustrated as they watch their children struggle despite following traditional paths to success.
What's Next?

Identify Momentum
Know where the momentum is in the job market
Think Strategically
Look beyond your first job
Adapt Continuously
Develop persistence and adaptability
Economists urge grads: "Know where the momentum is—think beyond your first job." The market demands persistence, adaptability, and strategic choices
Conclusion: The Locked Door
Locked Market
For the Class of 2025, the job market feels like a locked door.
Historical Perspective
History shows: adaptation, resilience, and creativity can still open new paths
Innovation Required
Finding unconventional solutions may be necessary for this generation
The Graduate's Dilemma
The Social Pressure
"There is this social pressure of needing to get out and get a job. But if nobody is hiring, what am I supposed to do?" — Gabriel Nash, 2024 graduate
The Mental Health Impact
Graduates report increasing anxiety and depression as job searches extend from weeks to months with little feedback or opportunity.
The Financial Reality
With student loans coming due and living costs rising, many graduates face immediate financial pressure without income prospects.