Recent college graduates are entering one of the most difficult job markets in years, especially in traditional white-collar industries such as IT, finance, and law. As entry-level hiring declines, many degree holders are struggling to find employment right after graduation.
According to the Bureau of Labor Statistics (BLS), the unemployment rate for college graduates ages 22 to 27 reached 5.8%, the highest since 2012, excluding the pandemic period. This figure exceeds the national unemployment rate of 4.2%, marking the widest gap in more than 30 years.
Experts attribute the slowdown in the college graduate job market to economic uncertainty, conservative hiring strategies by employers, and the growing use of artificial intelligence (AI).
Brad Hershbein, senior researcher at the W.E. Upjohn Institute for Employment Research, said, โNew graduates are often the first group that companies hesitate to hire during economic uncertainty. Thatโs exactly what weโre seeing now.โ
Hiring data supports this trend. A 2023 Oxford Economics analysis showed that since 2022, employment for computer and math majors over age 28 increased by 0.8%, while employment among 22- to 27-year-old college graduates in the same field dropped by 8%.
Even large tech companies are adjusting their hiring strategies. In April, Shopify CEO Tobi Lรผtke instructed employees to evaluate whether AI could replace any roles before making new hires.
Facing these hurdles, many graduates are delaying full-time employment by enrolling in graduate school or extending internships. At the same time, the perceived value of a college degree is being questioned. The share of U.S. workers with a four-year degree has risen from 26% in 1992 to 45% today, making a diploma less of a competitive edge.
Despite these concerns, many economists maintain that higher education remains a reliable path to long-term financial stability and lower unemployment. However, they caution that the first step into the workforce has become significantly more difficult than in the past.
Meanwhile, Department of Labor data released on June 26 showed that initial jobless claims for the week of June 15โ21 fell to 236,000, down 10,000 from the previous week. The number also came in below Dow Jonesโ forecast of 244,000.
However, continuing claimsโthose filed for more than one weekโrose to 1.974 million for the week of June 8โ14, up 37,000 from the prior week. The department noted this is the highest number of continuing claims since the week of November 6, 2021, when the figure was 2.041 million.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
