The tough job market for new college grads probably isn’t all due to AI

Current Job Market Reality

  • Unemployment for college degree-holders aged 22-27 is almost 6%, the highest since the pandemic
  • This rate is significantly worse than the overall unemployment rate of 4%, creating an unusual inversion rarely seen in the past three decades
  • Recent graduates are struggling to find work despite having degrees, with some considering service jobs while waiting out the market

AI’s Role (Mixed Impact)

  • Only about 6% of firms across the economy have adopted AI technology according to Goldman Sachs The tough job market for new college grads probably isn’t all due to AI
  • In tech specifically, AI impact is more significant – new graduate hires by Big Tech fell 25% since 2023
  • AI can now handle entry-level coding tasks that were traditionally learning opportunities for junior developers
  • Tech companies increasingly brag about AI-generated code while simultaneously announcing layoffs

source: https://www.marketplace.org/story/2025/06/30/why-college-grads-are-struggling-to-find-work