Young job seekers struggle in a tough market

The US labor market remains steady with a 4% overall unemployment rate, but young job seekers face worsening conditions.

New college graduates ages 20–24 experienced a 6.6% unemployment rate over the past 12 months—one of the highest levels in a decade outside the pandemic. High school graduates ages 18–19 without college saw an even steeper 14.5% rate.

Economists blame a hiring slowdown. Layoffs remain low, but businesses are cautious and reluctant to hire inexperienced workers.

Entry-level hiring has dropped 17% since April 2019, and many roles now demand 3–5 years of experience. Sectors like tech and finance—traditional landing spots for young grads—are hiring less, partly due to automation and AI adoption.

Additionally, college graduates ages 22–27 faced an average unemployment rate of 5.8% in early 2025, with the gap between their jobless rate and that of older workers hitting a 35-year high.

Frustrated, many have paused job searches, contributing to fewer people in the workforce.