A recent survey by the Federal Reserve Bank of New York shows that the labor market for college graduates in 2025 is among the most challenging in the last decade, apart from the pandemic period. Economists attribute this to a combination of factors, including government downsizing, cautious hiring by tech companies and consulting firms, and uncertain trade and tax policies.
Recent graduates like Azraiel Raines are feeling the pinch, with many struggling to find work despite having degrees in fields that were once considered recession-proof. Raines landed a position in her alma mater’s counseling department, which she didn’t envision for herself, but is using her skills in new ways.
Research by economists Jaison Abel and Richard Deitz suggests that while recent graduates may have to settle for less challenging work initially, most find more rewarding positions within a few years. The key is to view the job search as an investment that bears benefits over one’s entire working life.
The current unemployment rate among recent graduates is higher than in previous years, but it’s lower than the jobless rate among young people without college degrees. Employers are advising graduates to be flexible and open to new opportunities, even if they don’t land their first choice job.
Raines, who is now working at Idaho State University, hopes to take advantage of the school’s employee discount on studies towards a master’s degree in public administration, just in case a job opens up at the State Department. While she’s happy with her current job, she’s not giving up on her dream just yet.
The trend highlights the need for graduates to be adaptable and patient in their job searches, as well as to view their education as an investment that will benefit them over time.
Source: https://www.npr.org/2025/07/13/nx-s1-5462807/college-graduates-jobs-employment-unemployment