While the U.S. economy continues to grow and unemployment remains low, a new report has found that recent American college graduates are finding it harder to get a job than ever.
The national unemployment rate sits near 4.2%, but the report, published by The Washington Post, describes a labor market that looks healthy from the outside but feels broken to many people trying to enter or reenter it.
Economists quoted by the outlet describe the current moment as a “low-hire and some-fire” economy. Layoffs remain relatively low by historical standards, but companies are not adding workers at the pace normally expected in a growing economy.
The Bureau of Labor Statistics reported that the hiring rate was 3.5% in March, a level that The Post noted is more consistent with the slow years after the Great Recession than with a strong economy. “It is weird for us to have GDP growing at the rate it is and the hires rate be this low,” Laura Ullrich, director of economic research at Indeed, told the WaPo.
The Federal Reserve Bank of New York defines recent college graduates as people ages 22 to 27 with at least a bachelor’s degree, and national data cited by The Post showed their unemployment rate hit 5.6% in late 2025, above the overall unemployment rate.
Nearly half were underemployed, meaning they were working in jobs that did not require a college degree. The problem is not that companies are firing. It is that many are not replacing workers, expanding teams, or taking chances on inexperienced applicants, the report noted.
Tech companies, media organizations, and some white-collar employers have pulled back after aggressive pandemic-era hiring. Higher interest rates have also made expansion more expensive, pushing firms to delay hiring or invest in automation instead.
Artificial intelligence has added another layer of uncertainty. Ben Zweig, chief executive of Revelio Labs, told The Post he does not see broad “AI displacement” yet. Instead, he described the shift as “anticipatory,” with employers waiting to see which jobs and tasks AI may eventually absorb before committing to new hires.
AI is also clogging the hiring process itself. Zweig says recruiters are “flooded” with applications, many polished or generated by AI tools. Applicants, meanwhile, face automated résumé filters, keyword scans, and recorded video interviews.
That has made the traditional promise of college feel shakier. The Post highlighted workers with advanced degrees, technical skills, and professional experience who still struggled to land roles. For recent graduates, the bar has moved higher with jobs labeled “entry level” often asking for years of experience, AI skills, and proof of leadership.
However, health care continues to add jobs and remains one of the strongest sectors for workers seeking stability. But The Post reported that health care accounted for more jobs than the total net employment gain since the start of 2025, meaning many other sectors combined were effectively shrinking.
Kevin Gordon, head of macro research at the Schwab Center for Financial Research, called the pattern “rolling labor recessions,” with pain hitting different industries at different times rather than producing one obvious national crash.
