By Ami Medina, May 6, 2025
As the class of 2025 prepares to trade lecture halls for job searches, many are confronting a job market that feels a lot more like a closed door than an open runway.
According to data released by the Federal Reserve Bank of New York, the unemployment rate for recent college graduates jumped to 5.8% in the beginning of 2025, the highest since 2021, and the underemployment rate (working in jobs not requiring a degree) surged to 41.2%. Moreover, the gap between the unemployment rate of new graduates and that of experienced degree holders is now the widest on record outside the pandemic years.
According to MarketWatch, the United States economy shrank by 0.3% in the first quarter of 2025, partly because businesses rushed to import goods before new tariffs took effect, leading to a record-high trade deficit. This occurred alongside rising inflation, higher interest rates and reductions in federal program funding, contributing to broader economic uncertainty during the early months of President Donald Trump’s term.
According to an article published by The Washington Post government spending also slowed economic growth due to federal budget cuts and widespread layoffs tied to the Department of Government Efficiency, an initiative launched by President Trump and led by senior adviser Elon Musk. DOGE aimed to streamline the federal government by cutting waste and consolidating agencies, but the spending cuts led to layoffs and reduced economic activity.
Not all jobs have been equally resilient. According to U.S Chamber of Commerce, hiring in construction, retail, leisure and hospitality decreased significantly compared to pre-pandemic levels, and the professional and business services sector has shed jobs for the first time since the Great Recession. Only health care and state and local government have bucked the trend with modest gains.
David Earl-Itoga, a recent graduate who studied hospitality management, is currently working as a line cook at a country club.
“Employers, even my own, aren’t able to afford quality help,”Earl-Itoga said. “Pay is down and budgets for overtime or quality staff significantly reduce the number of applicants.”
Earl-Itoga’s goal is to be a full-time chef in his own restaurant, but he’s been told to be mindful of the economy when starting up a business.
“Rent costs and labor costs are at an all-time high, and it stunts growth,” Earl-Itoga said.
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Traditional entry-level positions for graduates are especially challenged as has AI reduced the demand for routine tasks. Companies prefer more experienced hires or AI solutions over fresh graduates, according to Business Insider.
“School was one and done for me,” Earl-Itoga said. “Culinary school specifically has been considered a waste of time in an industry where experience is everything. Getting a further education or a second degree would only slow my progression in skill or knowledge.”
Myah Vincent, a hospitality management student with an emphasis in special events, said she has been job hunting since January with limited success.
Vincent noticed a distinct lack of entry-level opportunities in her field. While a handful of postings in marketing exist, few focus on the kind of event planning work she’s passionate about. This mismatch between graduates’ skills and the roles available adds to the challenge.
“The economy has most definitely changed my postgrad plans,” Vincent said. “In the past, grads with student loans could move out shortly after finishing school, even if it was tight financially. But now, I have no choice but to move back home for at least a year. Maybe two.”
Despite her desire to stay within the events sector, Vincent has had to widen her job search across the broader hospitality industry, considering food service and hotel roles just to get by.
“I’m trying to find something I can enjoy for a few years while I save enough to move out,” Vincent said.
While Cal Poly Pomona’s Collins College has provided valuable networking and professional connections, she said the events emphasis is a niche area, and breaking in takes more than classroom experience.
Chandra Phung, an apparel merchandising and management student with a focus on fashion retailing, echoed similar frustrations.
“It’s been honestly tough,” Phung said. “It’s hard to find roles that really fit and offer a livable wage.”
Phung noticed many job listings remained unchanged for months, suggesting either companies have stopped hiring new people or there are just too many applicants competing for the same jobs.
According to The Atlantic, hiring has slowed to a pace not seen since the aftermath of the Great Recession, a time when unemployment was nearly double what it is today. Fewer workers are willingly leaving their jobs in search of better opportunities, which is a sign that confidence in the job market has dropped. The quit rate has plunged by a third since its peak in 2021–2022, nearing its lowest point in 10 years. As a result, the labor market feels stuck, workers are hesitant to leave, and companies aren’t actively hiring.
“I definitely think the economy has altered my postgrad plans,” Phung said. “I’m struggling to find the right match. It feels like positions have either decreased or been merged.”
However, Phung is open to exploring multiple industries, and she sees potential connecting fashion with marketing and graphic design. She is taking this time to consider internships and gain a wider range of experience.
With thousands of graduates entering the job market at the same time in December and May, competition for entry-level positions naturally spikes. In some industries, the job hunt is especially crowded, making it difficult for even well-qualified candidates with strong grades and experience to stand out.
But graduates can still take strategic steps to improve their chances in a competitive job market.
According to Medium, one of the most effective strategies is tailoring each resume and cover letter to the specific role, ensuring your skills and experiences clearly align with what employer are looking for. Building a portfolio, especially for those in creative or project-based fields, can help showcase your abilities beyond a traditional resume.
Networking is essential, and reaching out to alumni, professors or industry professionals can lead to referrals or hidden opportunities. Finally, even if a full-time job isn’t immediately available, gaining experience through internships, freelance work or temporary roles can build your resume and strengthen your professional connections.
While the path to employment may be more complex than in years past, staying open-minded is key. The class of 2025 has the power to shape meaningful careers and thrive, no matter the economic climate they’re entering.
Feature image by Ami Medina
