why US college graduates face highest unemployment: College graduates in US face job crisis: Unemployment now worse than the Great Recession

US college graduate unemployment 2025: The American dream of earning a college degree and embarking on a secure career is quickly fading. A report published by Global Markets Investor on social media X found that unemployment among recent college graduates rose to 9.3%, above what it was during the Great Financial Crisis and the worst level since 2021, according to the X post.

US College Graduate Unemployment Reaches Highest Level Since 2021 at 9.3%

The figure, which nearly matches the 9.5 percent peak seen during the recession in 2001, paints a bleak picture for young professionals, according to a social media post.
A new study from the Burning Glass Institute found that for the first time in three decades, college graduates face nearly the same unemployment rates as people with only a high school diploma, MyNorthwest.com reports.

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College Degrees No Longer Guarantee a Stable Career

According to the report, “recent college graduates” are defined in the research as people between the ages of 22 and 27 who have at least a bachelor’s degree. Despite years of education and mounting student debt, more than half of these graduates struggle to find suitable employment.

More than Half of 2023 Graduates Work in Jobs Below Their Skill Level

The study found that 52% of the class of 2023 is underemployed a year after graduation and working in jobs that do not require a college degree, MyNorthwest.com reported.
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Layoffs Among Young Professionals Have Doubled Since Pre-Pandemic

Even those who manage to secure positions in their chosen fields are not safe, as layoffs among recent graduates have nearly doubled compared to pre-pandemic levels, according to the report.

Artificial Intelligence and Automation Are Dismantling Traditional Entry-Level Roles

One of the most important factors triggering this crisis is the rise of artificial intelligence. Automation has transformed and in many cases eliminated traditional entry-level roles that once provided valuable experience to young workers, according to a MyNorthwest.com report.

New Graduates Are Losing On-the-Job Learning Opportunities to Artificial Intelligence Tools

The research found that, as the report states, “Entry-level jobs once gave new hires the chance to develop skills through basic tasks such as research, drafting and analysis.”

According to MyNorthwest.com, the Burning Glass Institute’s research stated: “Today, many of these tasks are performed by artificial intelligence tools, eliminating on-the-job learning opportunities. If graduates are expected to enter the workforce fully educated, many will struggle to meet increasing skill requirements, thus widening the gap between education and employment.”

Employers Demand Experience Even for Entry-Level Positions

This change has created a daunting hurdle for new graduates. According to the report, employers are increasingly choosing candidates with many years of experience, while leaving recent graduates aside. Even “entry-level” positions now require three or more years of prior work, according to the research.

Number of University Graduates Will Increase by 2034, Job Competition Will Increase

The study also warns that the problem will get worse. While the working-age population is expected to remain stable, the number of college graduates is expected to continue to increase, according to a MyNorthwest.com report. By 2034, there could be 7 to 11 million more graduates competing for the same limited pool of entry-level jobs, MyNorthwest.com reported.

Experts Warn of Long-Term Impact on Career Development and White-Collar Workforce

As quoted in the report, the study noted: “Without structural changes in hiring, training, and career preparation, underemployment may become the default outcome for new graduates, undermining career mobility, lifetime earnings, and the long-term health of the white-collar workforce.”

FAQ

What is the unemployment rate among recent college graduates in the United States?
It is currently at 9.3%, the highest level since 2021 and higher than during the Great Recession.

Why are layoffs increasing among new graduates?
Layoffs have nearly doubled since before the pandemic, largely due to automation and AI disruptions.