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The Wall Street Publication > Blog > Lifestyle > Current graduates going through ‘deteriorated’ labor market as unemployment reaches highest degree in years
Lifestyle

Current graduates going through ‘deteriorated’ labor market as unemployment reaches highest degree in years

Editorial Board Published June 16, 2025
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Current graduates going through ‘deteriorated’ labor market as unemployment reaches highest degree in years
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‘Making Cash’ host Charles Payne breaks down the better-than-expected Might jobs report.

Current faculty graduates are aggressively trying to find their first job, however they’re going through one vital drawback: the labor market is deteriorating. 

Financial analysis from the Federal Reserve Financial institution of New York indicated the labor market “deteriorated noticeably” within the first quarter of 2025, with these simply coming into the workforce taking the toughest hits. 

The Labor Division reported that employers added 139,000 jobs in Might whereas unemployment held regular at 4.2%. The unemployment charge for all faculty grads was 2.7%, however the charge for these between the ages of twenty-two and 27 years previous jumped to five.8%, in line with the New York Federal Reserve. That is the best studying since 2021. 

US LAYOFFS SPIKE NEARLY 50% AS DOGE-DRIVEN CUTS TAKE CENTER STAGE

This uptick within the unemployment charge amongst current graduates raises considerations concerning the power of the broader labor market, in line with researchers at Oxford Economics. 

School college students have a good time throughout their commencement ceremony. (iStock)

“While we do expect the impact of tariffs, higher inflation, and weaker demand to lead to reduced business hiring and outright layoffs in the months ahead,” the researchers stated. 

US ECONOMIC GROWTH FORECAST CUT SHARPLY DUE TO HIGHER TARIFFS 

They cited the hiring slowdown in know-how together with growing faculty graduates in pc science fields as the first cause for rising unemployment amongst this age group.

Some normalization after the post-pandemic surge additionally performed an element. Nonetheless, researchers stated there are “signs that entry-level positions are being displaced by artificial intelligence at higher rates,” in line with the Might report. 

college graduates walking away

(Paras Griffin/Getty Photographs)

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Researchers venture the unemployment charge for current faculty graduates will stay elevated within the close to time period until there’s a surge in demand from tech firms or a mass exodus from the labor pressure by these people. These situations “seem unlikely,” in line with the researchers. 

“While these workers only account for around 5% of the workforce, they have played an oversize role in pushing the national unemployment,” the researchers stated within the report. 

Dr. Nathan Mondragon, chief innovation officer at synthetic intelligence and human sources administration firm Hirevue, stated the most important problem for job seekers is not simply discovering jobs however standing out when making use of within the extremely aggressive market. 

“With a surplus of applicants for every open role, employers are using AI-driven applicant tracking systems to filter candidates before a human even sees a resume,” Mondragon stated.

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