Sunbelt cities dominate graduate job market

Fast-growing cities across the American Sunbelt are emerging as top destinations for graduates, even as the broader job market remains tough.

A new study by ADP ranks Birmingham, Alabama, as the best place for early-career jobs, followed by Tampa, Florida. Six of the top 10 cities are in the South, including Raleigh, Tulsa, Nashville, and Charlotte.

The analysis reviewed payroll data from more than 400,000 young workers across 53 metro areas. It found that hiring strength, pay levels, and affordability drive success for graduates. 

Birmingham stood out with strong hiring and a 16% rise in median graduate salaries to $59,004.

Tampa ranked second due to hiring growth, driven by healthcare, finance, and technology. Meanwhile, San Jose climbed to third place, boosted by a tech hiring rebound despite high living costs.

The report shows that entry-level hiring is recovering unevenly, and conditions are still tough. According to the Federal Reserve Bank of New York, unemployment among recent graduates climbed to 5.6% by the end of 2025, up from 4.8% a year earlier.

Cities like Columbus also performed well due to lower housing costs and expanding industries. Overall, location now plays a critical role in shaping career opportunities for new graduates.