U.S. graduates face toughest entry-level job market since pandemic

New graduates / File: Getty Images

American college graduates are navigating one of the most challenging entry-level job markets since the COVID-19 pandemic. According to The Guardian, the underemployment rate reaching 42.5%, its highest level since 2020. Tightening opportunities, AI-driven hiring systems, and shifting employer expectations are leaving young graduates struggling to secure positions.

Gillian Frost, a 22-year-old quantitative economics major at Smith College in Massachusetts, has applied to over 90 jobs since September, with nearly 25% of applications ghosted and 55% automatically rejected. “I’ve gotten around 10 interviews but many of them don’t even bother to tell you you’re not a good fit… I feel helpless.” she said. Frost cited the rare combination of a tight labor market, AI disruption, and global uncertainty as unprecedented challenges for her generation.

For mid-career professionals returning to school, the situation is equally difficult. Jeff Kubat, 31, pursuing a master’s in accounting in St. Cloud, Minnesota, said companies are increasingly rigid, hiring only candidates with exact qualifications. “It really does feel like I’m in an area that doesn’t match with my industry,” he said, noting that most openings result from turnover rather than genuine growth.

The pressure is compounded by the rise of automated hiring systems. A 25-year-old media graduate explained that “it’s essential to tailor my resume explicitly for that position and include as many keywords as possible … I hate that I have to worry about passing a machine’s arbitrary and unknowable tests before anyone considers my human capability.”

Graduates also face structural barriers in hiring. Anna Waldron, 22, double-majoring in political science and journalism at Loyola University Chicago, said that many jobs are filled internally or through networks, leaving those without connections at a disadvantage. Despite completing three internships, including work for the U.S. Senate, she has yet to secure a full-time role.

Experts say that the combination of AI, highly selective hiring practices, and a limited number of entry-level positions is creating a perfect storm for new graduates, who are being forced to adjust expectations, pursue internships or freelance work, and focus on networking to break into competitive industries.