The latest U.S. jobs report, released Thursday, paints a mixed picture for job seekers. Employers added 147,000 jobs in June, and the national unemployment rate trickled to 4.1%. But for recent college graduates, the outlook is less encouraging.
According to the Federal Reserve Bank of New York, the unemployment rate for new college graduates rose to 5.8% as of March, up from 4.6% a year earlier. And even among those who have found work, the report found more than 40% are “underemployed,” working roles that don’t require a college degree.
“I’ve applied for a bunch of jobs but haven’t heard back,” said Evan Abel, a 2025 Virginia Tech marketing graduate. “A lot of the times it’s just me applying online. I send in a resume and a cover letter and then it’ll be pending for months but I won’t hear a word. “It’s not feasible for a college student coming out to have five years of work experience in that field.”
Adding to the pressure, in May, the Trump administration resumed collecting defaulted student loan payments – just as more graduates enter an already anxious job market.
“As I’m paying for school and spending all my time, I’m thinking about the time I could have an internship,” Abel said.
But even when internships are available, Abel said the pay doesn’t compare. “I’ve had internships offer me $12 an hour, but my job pays me $20,” he said. “I can’t afford to leave my job for that.” Without securing an entry-level marketing role that pays more, he remains stuck working outside his field.
A recent survey by the National Association of Colleges and Employers (NACE) found major employers, including Chevron and PepsiCo, are scaling back hiring for entry-level roles. Only 24.6% of companies planned to expand new graduate recruiting this year, the lowest rate since the pandemic.
Nicole Barnett, who graduated from Roanoke College in 2024 with a degree in philosophy and a concentration in legal studies, said even figuring out where to apply can be difficult.
“It’s also hard to distinguish which jobs are legitimate, which ones are actually looking for individuals to employ,” she said. “There are also other aspects like AI that we haven’t really had to worry about in the past.”
Faced with fewer opportunities and more competition, many graduates are adjusting their expectations. According to the NACE, more than half of this year’s graduates say they’ve abandoned the “dream job” they once envisioned.
“I’m lucky enough to have a full-time job while looking for a job,” Barnett said.