Recent College Grads Struggle As Unemployment Rises

Although unemployment rates have remained relatively stable, recent college graduates are struggling to find jobs more than others.

According to calculations by the Federal Reserve Bank of New York, the gap between unemployment rates for all workers and recent grads continues to grow wider. Overall unemployment rates increased in the third quarter, and recent grads were hit the hardest.

The unemployment rate for all workers increased by 0.2 percentage points from the end of the second quarter to the end of the third, while the unemployment rate for recent grads jumped up by 0.7 percentage points.

In the initial phases of pandemic recovery, unemployment rates for both groups improved almost in tandem but started to diverge in the summer of 2022. Economists said that when employers pull back on hiring, young workers are typically affected the most as they enter the workforce.

The Labor Could Improve For All Workers, Including Recent Grads, in the Next Year

However, workers can enter the new year more confidently in the labor market, and recent grads should find it easier to get a job after school, according to employers.

Companies plan to hire more Class of 2025 graduates next year. A recent National Association of Colleges and Employers survey found hiring will increase by 7.3% compared to hiring for the Class of 2024.