The class of 2025 is entering a job market marked by growing uncertainty and fewer opportunities compared to previous years. As of March, the unemployment rate for recent college graduates rose to 5.8%, up from 4.6% a year earlier. Underemployment (when grads work in jobs not requiring their degrees) also increased, reflecting a broader slowdown in entry-level hiring. Economists describe the current job market as “frozen,” with both employers and job seekers hesitant amid economic turbulence.

Internship opportunities, a key predictor of future job prospects, are down significantly from previous years. Companies are scaling back hiring plans and just 24.6% reporting intentions to expand new graduate hiring — the lowest since the pandemic’s early days. Salary outlooks are mixed, with certain majors like social sciences projected to see pay declines.

At the same time, the Trump administration is resuming forced federal student loan collections for borrowers in default. This policy shift could hit struggling graduates hard, siphoning money from wages and benefits just as they attempt to find stable employment. A record 20.5% of student borrowers are now more than 90 days past due.

Economic instability, fueled in part by renewed trade tensions and rising tariffs, is adding to employer caution. Large firms are reassessing hiring as they brace for rising costs and a potential recession. Consumer confidence has dropped to a 13-year low, and spending patterns reflect fears that prices may continue to climb.

In this environment, many new graduates are revising their career expectations and feeling pessimistic about the future. More than half no longer pursue their original career goals, and a significant portion express doubt about entering the workforce. For many, the excitement of graduation is overshadowed by anxiety about uncertain prospects in a shifting economic landscape.