Recent college graduates are facing an exceptionally tough job market, despite possessing strong qualifications and extensive networks, according to a Bloomberg report.
US citizen Robert Trowe, a 21-year-old finance graduate from Arizona State University, shares his struggle.
With a summer internship at JPMorgan Chase & Co and a robust network of references, Trowe applied to 300 jobs since his senior year began, yet only 4% led to interviews, 33% resulted in automated rejections, and the rest received no response.
According to the Bloomberg report, Uday Medisetty, an Indian citizen with a Master’s degree in Computer Science from the University of Florida, has applied to over 100 jobs without success.
As an international student on a visa, he faces the added pressure of needing employer sponsorship through the H-1B programme, which is under scrutiny during Trump’s ongoing second term. Without a job by summer’s end, Medisetty may have to return to India.
Economic and technological pressures
The job market’s difficulties stem from multiple factors, including a global tech slowdown, corporate hiring freezes driven by uncertainties around President Donald Trump’s tariff policies, and the rise of artificial intelligence (AI) replacing entry-level roles.
While the US economy remains stable, with the overall unemployment rate steady in May 2025, the number of unemployed individuals has risen for four consecutive months — the longest streak since 2009.
Young degree-holders aged 22 to 27 face a 5.8% unemployment rate, the highest in four years, well above the national average, according to the Federal Reserve Bank of New York.
Impact across academic disciplines
Unemployment rates vary significantly by major.
– Graduates in construction services and nutrition sciences face low unemployment rates of 0.7% and 0.4%, respectively.
– Computer engineering majors, once highly sought after, now face a 7.5% unemployment rate, trailing only anthropology and physics.
– Oxford Economics reports an 8% drop in employment for recent computer science and math graduates since 2022, contrasted with a 0.8% increase for those over 27.
AI’s growing role is a key factor, with over 60% of executives surveyed on LinkedIn indicating that AI will soon handle tasks typically assigned to entry-level employees, such as basic coding, as noted by Meta’s CEO Mark Zuckerberg.
Unemployment adds to other crisis
According to the Center for American Progress, six months of unemployment at age 22 can result in $22,000 less in earnings over a decade.
The situation is compounded for graduates like Trowe, who face looming student loan repayments.
With the US Department of Education resuming collections on defaulted loans in May 2025 after a five-year pause, Trowe must begin repaying his $15,000 college debt within six months, potentially pushing him toward less desirable jobs, such as call centre or technical support roles, if his banking aspirations remain unfulfilled.