Recent university graduates have faced rising unemployment rates in the worsening of the labor market
“Make Money” host Charles Payne classifies May reports that are better than expected.
Recent University Alumni They are actively hunting their first jobs, but they face one serious problem: the labor market is getting worse.
Economic research from the Federal Reserve Bank of New York shows that the labor market “deteriorating significantly” in the first quarter of 2025, showing that people who just joined the workforce had the most intense hits.
The Labor Bureau reported its employer Added 139,000 jobs The unemployment rate stabilized at 4.2% in May. According to the New York Federal Reserve, the unemployment rate for all university graduates was 2.7%, but the proportion of people aged 22 to 27 jumped to 5.8%. It’s the best reading since 2021.
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This unemployment rate of recent graduate unemployment raises concerns about the strength of the broader labor market, according to researchers at Oxford Economics.
College students celebrate at graduation. (istock)
“I’m hoping for the impact of tariffs, Higher inflationand there is low demand for business employment to decrease and complete layoffs in the coming months,” the researcher said.
US economic growth forecasts have been sharply reduced due to increased tariffs
They cited a slower technology employment along with the rise in university graduates in the computer science field as a major reason for the rise in unemployment among this age group.
Some normalization after the surge in post-pandemic has also played a factor. However, the researchers said there were “indications that entry-level positions are being displaced by artificial intelligence at a higher rate,” according to a report in May.
(Parasgriffin/Getty Images)
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Researchers predict that recent unemployment rates among university graduates will continue to rise in the short term, unless demand from high-tech companies surges or large-scale escape from the workforce by these individuals. Researchers say these scenarios “apparently unlikely.”
“Though these workers only make up about 5% of the workforce, they have played an extraordinary role in driving the country’s unemployment,” the researcher said in the report.
Dr. Nathan Mondragon, chief innovation officer at artificial intelligence and human resources management firm Hirevue, said the biggest challenge for job seekers is not only finding employment, but also standing out when applying to a highly competitive market.
“Because there’s a surplus of applicants in all open roles, employers use AI-driven applicant tracking systems to filter candidates before humans look at their resumes,” says Mondragon.