Though the national unemployment rate is holding near 4%, the job market has turned especially grim for young people, The Wall Street Journal reports.
New college graduates ages 20–24 face a 6.6% unemployment rate—among the highest in a decade outside the pandemic. For graduates ages 22–27, it averaged 5.8% in early 2025, the widest gap between young and overall jobless rates in 35 years, according to the New York Fed.
The root cause: Businesses are pulling back on hiring, not laying off, leaving job openings scarce—especially for candidates with limited experience. Entry-level hiring is down 17% since 2019, and even roles labeled “entry level” often require years of experience. High school grads face even worse odds, with unemployment nearing 15%.
New graduates describe applying to dozens—or hundreds—of jobs with few responses, and often face delayed start dates even when hired. Industries like tech and finance, once magnets for recent grads, have cooled, while AI replaces many junior roles. With fewer entering the workforce, official unemployment may stay low, but for young job seekers, the struggle is real.
