The class of 2025 is navigating graduation season amidst a particularly challenging job market. Recent college graduates are facing an unemployment rate of 5.8 percent, up from 4.5 percent last year, according to the New York Federal Reserve. The underemployment rate has also risen to 41.2 percent, with certain majors such as anthropology, physics, and fine arts experiencing particularly high levels of underemployment.
Jenna, a 23-year-old University of Virginia graduate in biology and data science, received a job offer from the federal government in January, only to have it put on hold in March due to a hiring freeze. “It’s been quite disorienting,” she said. “I don’t think anybody saw this coming.” Jenna has applied to roughly 100 other roles but struggles to stand out in a competitive field where AI models are increasingly used to sift through resumes.
“I have no idea what this AI is trained to look for,” Jenna explained. “I don’t know what the buzzwords are… So I just feel like it’s even more of a crap shoot.” Her concerns are compounded by the fear that AI will replace human workers in her desired field. The tech sector has seen an unemployment rate rise to 5.7 percent as billions are spent on AI implementation, replacing routine tasks typically given to new graduates.
Jesse Zmick, set to graduate with a master’s degree in cybersecurity, is also navigating the challenging job market. While currently working in systems administration and cybersecurity, he’s learning to adapt to AI models to remain competitive. “If I were looking at entry-level roles right now, I’d be more worried,” he said, attributing the difficulty to both economic conditions and the automation of some entry-level positions.
In response to these challenges, Jenna is pursuing extra certifications and considering graduate school, possibly overseas. “I don’t have the experience or the credentials… to get some of these positions,” she admitted. The situation mirrors that faced by millennials during the 2008 recession, with recent graduates adapting their plans to navigate an uncertain job market.
The World Economic Forum estimates that while AI may generate 170 million jobs, it will also displace approximately 92 million, resulting in a net growth of 78 million jobs. As the job market continues to evolve, recent graduates must adapt to the changing landscape, developing new skills and strategies to remain competitive in an AI-driven world.
