Job Market Challenging for New College Grads

Recently, many students graduated from colleges and universities. However, securing a job in their field may be difficult. According to Oxford Economics, opportunities for new graduates might be more limited than in previous years, particularly in tech, due to factors like artificial intelligence and tariff policies.

The U.S. Bureau of Labor Statistics reported 7.2 million job openings in March, which is similar to pre-pandemic levels. April's numbers will be available on June 3. Despite job growth, there are some concerns in the job market. Initial jobless claims rose to 240,000 for the week ending May 24, and continued jobless claims are the highest since 2021. According to Nancy Vanden Houten, Oxford Economics, it is becoming harder for workers to find new jobs.

Economists have noted that fluctuating tariffs have created uncertainty for businesses, causing them to delay hiring decisions. Allison Shrivastava from Indeed Hiring Lab noted that new graduates face a murky job market. Many entry-level positions may not align with graduates' aspirations. While there are many job postings, many do not require a college degree.

Oxford Economics reports that college enrollment in computer system design and related tech fields surged in the past two decades. However, since 2022, positions in computer and mathematical sciences have been affected by the adoption of AI systems. Before the pandemic, recent college graduates had lower unemployment rates than the overall rate. Since mid-2023, this has reversed, with recent graduates' unemployment rates now higher.

Health care courses and programs also increased in the past decade, and job opportunities in health care remain strong. Medical careers dominate Indeed's list of job postings with the highest growth since 2020.

Most unemployed recent graduates are actively seeking jobs, according to Oxford Economics. Shrivastava suggests exploring internships. Pharmacy roles frequently appear on Indeed’s job board because internships are often required for licensing. Despite a potentially difficult path, college graduates typically earn more than those with only a high school diploma or an associate degree. Oxford Economics also notes that college-educated workers tend to fare better during economic downturns than those with less education.