New grads are facing the worst entry-level job market in years

Trying to get a job: the Gen Z version of walking uphill to school both ways. Mounting evidence exists that indicates today's young job-seekers are facing their fair share of hardship when seeking out work:

• The unemployment rate for degree-holders aged 22-27 hit 5.8% this spring—its highest level in four years, and well above the national average of 4.0%, per NY Fed data.
• Since mid-2023, recent college graduates account for 12% of the rise in US unemployment rate, contributing over twice their 5% share of the labor force, according to Oxford Economics.
• Just 7% of all Big Tech hires in the US were new grads last year, down 25% from the previous year and 50%+ lower than 2019, per SignalFire’s State of Tech Talent Report for 2025.

Some majors are more affected than others. The unemployment rate among college graduates who studied subjects like construction services (0.7%) and nutrition sciences (0.4%) remains close to zero. But computer engineering majors—once among the most highly sought-after specializations—have the third-highest unemployment rate for recent grads (7.5%), with computer science and mathematical majors in similar boats.

Bottom line: At least some of the trend can be attributed to AI’s recent explosion onto the scene. A LinkedIn report last month found 63% of executives surveyed agreed that AI will sooner or later take on some of the mundane, manual tasks currently assigned to entry-level employees.