The job market for new graduates is facing unprecedented challenges, with hundreds of thousands of students entering the workforce amidst rising unemployment rates and uncertainty surrounding President Donald Trump’s tariff policies.
According to Oxford Economics, a global economic forecasting company, initial jobless claims have risen to their highest level since 2021, while continued jobless claims remain at an all-time high. This suggests that workers who lose their jobs are finding it tougher to find new employment.
The rise of artificial intelligence (AI) has also added another layer of complexity for recent graduates. AI systems have led to a decline in positions in computer and mathematical sciences, which were once considered lucrative entry-level roles. In fact, the number of tech-related programs has decreased by 10% since 2022.
However, not all fields are struggling. The healthcare sector remains strong, with medical careers dominating Indeed’s list of job postings with the highest growth since 2020. Despite this, many new graduates face challenges in finding employment that aligns with their degrees.
Oxford Economics suggests that continued joblessness is a sign that workers who lose their jobs are having difficulty finding new employment. The company notes that fluctuations in tariffs have created uncertainty for businesses, prompting them to hold off on staffing decisions.
To navigate this challenging job market, recent graduates can explore internship opportunities, which can provide a foot in the door and help build experience. According to Indeed’s data, many of the top listings align closely with a wider variety of college degrees.
Despite the uncertainty, new graduates can take comfort in the fact that they are likely to earn more over their lifetimes than those with only a high school diploma or associate degree. Additionally, college-educated workers tend to weather economic downturns better than those workers with less education.
In summary, while the job market for new graduates is uncertain, there are still opportunities available, particularly in the healthcare sector. Recent graduates can explore internship opportunities and stay persistent in their job search to increase their chances of success.
Source: https://eu.usatoday.com/story/graphics/2025/05/29/job-market-2025-college-graduates/83884373007