Recent graduates face a 5.7% unemployment rate, outpacing the national average, amid post-pandemic hiring slowdowns and AI-driven automation.
The unemployment rate for recent US graduates has climbed to 5.7%, exceeding the national average of 4.1%, marking a reversal of historical trends. Prior to the pandemic, graduates consistently enjoyed better job prospects than the broader workforce, but that advantage has eroded since 2020.
Analysts attribute the shift to post-pandemic overhiring and the rise of artificial intelligence, which automates entry-level tasks traditionally filled by young workers. While AI’s impact is debated, the timing of the widening gap suggests it may be accelerating the trend.
Federal Reserve officials, including Richmond Fed President Thomas Barkin, describe the current labor market as a low-hire, low-fire environment, with hiring challenges concentrated among new entrants.