Why new college graduates face one of the toughest markets

This job report summarizes a PBS NewsHour segment on the difficult entry-level labor market facing the class of 2025. Recent college graduates described months of applications, interviews stalled by hiring freezes, and what many call “ghosting” by employers. Data cited in the piece shows a higher-than-usual unemployment rate for recent grads and meaningful shifts in hiring patterns—figures that make this more than an ordinary jobs update, jobs reports, staffing story. Below we present a clear, evidence-based news report that explains what is happening, why it matters, and what graduates and employers can do next.

Introduction: the headline numbers

PBS NewsHour reports that in June the unemployment rate for recent college graduates was nearly 5 percent, a rate above the overall unemployment figure. Handshake, the college-to-career platform, says that job postings are down 15 percent year-over-year while applications are up 30 percent. Those contrasting figures—fewer jobs, more applicants—are core to this jobs update, jobs reports, staffing narrative and help explain why many new graduates are experiencing an unusually painful job search.

Voices from the field: graduates describe a demoralizing search

Reporters spoke with recent graduates who described the emotional toll of a stalled job search. One graduate said he had “sent eighty-five job applications” since April and felt “dejected” after receiving no feedback. Another candidate described reaching the third round of interviews for a federal position, only to have a hiring freeze halt the process. These firsthand accounts humanize the numbers found in jobs update, jobs reports, staffing data and underscore how delays and silence from employers have a real psychological impact.

"I would often be what I would consider ghosted by employers. Wouldn't get any feedback at all, not even a rejection, just nothing."

What the data says: fewer jobs, more applicants

Handshake’s chief education officer, Christine Cruz Vergara, framed the market in three parts: the overall economy, government actions (like federal hiring freezes), and the rapid adoption of AI. Key points from the interview included:

• Jobs down 15%: Employers posted fewer entry-level roles compared with the prior year.
• Applications up 30%: Competition intensified as more candidates apply for each available position.
• Unemployment for recent grads near 5%: Higher than the overall labor market.

These numbers form the backbone of any balanced jobs update, jobs reports, staffing analysis: supply (open roles) has contracted while demand (applicants) has surged, creating a crowded funnel for entry-level opportunities.

Why the market is especially tough right now

The segment identified three structural forces behind the strain:

1. Macroeconomic uncertainty: Employers are cautious about hiring in an uncertain economic environment.
2. Government hiring patterns: Freezes or reductions in public-sector hiring remove visible, stable career paths for graduates.
3. AI-driven role transformation: Generative AI and productivity tools are changing the tasks associated with entry-level roles, shifting employer expectations and sometimes reducing the number of hires needed to complete certain functions.

As Christine Cruz Vergara explained, employers are experimenting with how AI integrates into workflows. That experimentation changes the “skill set” employers expect from entry-level hires, and during this transition candidates can find themselves caught in a messy, evolving hiring process.

Sectors to watch: where hiring is rising and where it's slowing

Handshake’s data and the PBS piece point to diverging sector trends:

• Healthcare: Opportunities remain elevated. Health-care hiring is rising in parts of the market, and employers report staff shortages in several roles—creating openings for graduates willing to pivot.
• Big Tech: Hiring has slowed. Major tech firms experienced layoffs and are among the fastest adopters of generative AI, which raises questions about future headcount needs.

As a result, over 40 percent of new grads say they're open to exploring industries other than their intended field—often choosing adjacent roles where their skills transfer, such as health tech for those with a computer science background.

How graduates can respond: practical steps grounded in evidence

Christine Cruz Vergara offered three actionable recommendations for first-time job seekers. Framed in a practical “Feel, Felt, Found” style, these are steps graduates can take while the market reconfigures.

1. Build a support network

Feeling rejected is common; so is burnout. The segment recommends that graduates find a support group—family, friends, peers, alumni, or career coaches—who provide encouragement and practical feedback. Peer accountability helps sustain the long application grind and prevents isolation.

2. Upskill strategically

Graduates should audit the skills employers are currently asking for and use downtime to acquire those skills. This may include:

• Short online courses (data tools, digital marketing, basic coding, healthcare certifications)
• Micro-credentials and bootcamps aligned with target roles
• Learning how to use AI productively and ethically in the context of your field

Upskilling increases marketability and can make a candidate stand out in a crowded applicant pool—an important component of any jobs update, jobs reports, staffing plan for career entry.

3. Reframe the first job

Graduates often expect their first job to define their whole career. The segment counseled that the first role is rarely permanent: it’s a learning opportunity and a stepping stone. That mindset reduces selection paralysis and helps graduates accept roles that offer skill-building and upward mobility.

What employers should consider

Employers, especially those who hire entry-level talent, also have decisions to make in this environment:

• Communicate clearly: Ghosting candidates harms employer brand; clear timelines and feedback reduce anxiety among applicants and improve long-term recruitment outcomes.
• Define AI expectations: If AI tools will be part of the role, state what proficiency looks like and what training will be provided.
• Think about transferable skills: Open pathways for candidates from adjacent fields (e.g., hire technically minded graduates into health tech roles and provide domain training).

These steps can make recruitment more efficient and help firms find the right fit faster—improving the metrics that future jobs update, jobs reports, staffing analyses will track.

Case study snapshot: job search resilience

The featured graduates exemplify resilience: sending dozens of applications, iterating on resumes, and continuing interviews despite setbacks. One said, “I’m a little too stubborn to switch career paths right now,” reflecting a determination that many new entrants display. This persistence—paired with strategic upskilling and networking—boosts the odds of landing a suitable role even when jobs are scarcer.

What this means for the broader labor market

Short term: the mix of fewer entry-level postings and more applicants creates a backlog and higher competition. Medium term: employers will adjust to AI-driven productivity gains by refining job descriptions and rethinking headcount. Long term: new graduate cohorts who acquire adaptable technical and interpersonal skills during this period may enjoy accelerated career growth when the labor market rebalances.

Future jobs update, jobs reports, staffing narratives will need to track not just vacancies and applications, but also role design—how much of a job is automated, and which skills remain uniquely human and promotable.

Conclusion: a clear, actionable outlook

The PBS NewsHour segment and Handshake’s insights together paint a picture of a tight, evolving entry-level labor market. The combination of macroeconomic caution, government hiring shifts, and AI-driven change is squeezing job openings even as candidate interest grows. For graduates, the recommended playbook is straightforward: find support, upskill in targeted ways, and treat the first job as a step rather than an endpoint. For employers, clearer communication and more thoughtful role design will reduce candidate frustration and improve staffing outcomes.

As this jobs update, jobs reports, staffing story continues to unfold, transparency from employers and adaptability from new entrants will be the most important variables in determining how quickly the market stabilizes.

FAQs

Q: How bad is the unemployment rate for recent graduates?

A: According to the PBS NewsHour segment, recent-graduate unemployment was nearly 5 percent in June—higher than the overall unemployment rate. This figure is a key indicator cited in jobs update, jobs reports, staffing coverage.

Q: Why are there fewer entry-level jobs?

A: The segment cites three major reasons: macroeconomic caution, government hiring freezes or slowdowns, and businesses re-evaluating headcount needs as they adopt AI tools. These factors combined have reduced the number of available entry-level roles in many industries.

Q: Which industries still have opportunities?

A: Health care is one area showing rising opportunities. Other sectors may also have niche openings; candidates with transferable skills (tech, communication, data) might consider adjacent roles like health tech.

Q: What should recent graduates do now?

A: Follow the three-pronged advice from Handshake: (1) maintain a support network, (2) upskill with targeted, practical learning, and (3) accept that the first job is rarely the final job—use early roles to build competencies and networks.

Q: Are employers ghosting applicants more?

A: The graduates interviewed reported ghosting or minimal feedback. The segment recommends employers improve candidate communication to protect their talent brand and reduce candidate discouragement—an important consideration in any jobs update, jobs reports, staffing analysis.

Q: How does AI affect entry-level hiring?

A: AI changes what tasks need human attention and what can be automated. Employers will increasingly expect applicants to show how they use AI productively, which will shift required skill sets for entry-level roles.

Source and credits

This report synthesizes reporting from PBS NewsHour and expert commentary from Christine Cruz Vergara of Handshake. For the original segment and full context, see PBS NewsHour’s coverage and Handshake’s labor market reports. This jobs update, jobs reports, staffing write-up aims to provide clear guidance to graduates and employers navigating today’s market.