Current:Home > NewsNew college grads face a cooling job market. Here's where the jobs are. -FinanceMind
New college grads face a cooling job market. Here's where the jobs are.
View
Date:2025-04-18 11:45:43
After earning their college degrees this month, new graduates are understandably eager to land their first job and start making their education pay off. But that could pose more of a challenge this year than in 2023.
Hiring for freshly minted college grads is forecast to decline 6% from a year earlier, according to a recent survey of more than 200 employers from the National Association of Colleges and Employers, a group representing college career services employees.
Data from payroll services provider Gusto also shows that the new grad hiring rate — the share of recent graduates who are hired in a given month — is now about 6%, down from a recent peak of 10% in 2021. Still, the hiring rate is about level from a year earlier, with Gusto principal economist Liz Wilke telling CBS MoneyWatch that the job market for new grads is relatively stable.
40% underemployed
Securing that first job out of college may be a rite of passage, but it can also be nerve-racking for young adults who need to pay for groceries and make the rent. And about 4 in 10 recent college grads are currently "underemployed," meaning they're working in a job that doesn't require a college degree, according to data from the Federal Reserve Bank of St. Louis.
"We know that the first job out of college is incredibly important when setting the course for the rest of a person's career," Wilke said. "However, not every college graduate is going to enter a booming job market, and some are not afforded the option of being picky."
According to Gusto, the top five industries currently hiring new college grads are legal, nonprofits, arts and entertainment, health care, and social assistance and construction.
"New grads with skills that are applicable to these industries are likely to see increased interest in their resumes," Wilke noted.
Some industries are planning to cut back on the number of new hires from the class of 2024, the National Association of Colleges and Employers found in its survey. Among them are computer and electronics manufacturers, with those businesses projecting a decline of about 12% in hires of new grads, while financial firms expect an almost 15% drop, the group found.
Technology companies have slashed thousands of jobs in recent months as they shift toward artificial intelligence. Yet new grads who know how to work with artificial intelligence may have an edge, Wilke said.
"AI skills are something [businesses] are seeking from this younger cohort of workers," she added. "Business owners believe that since this younger generation has 'come of age' with this technology, that they are better equipped to figure out how to best put it into practice."
Employers say the modest pullback in hiring comes after an extremely tight labor market in the years after the pandemic, when workers were harder to come by and they weren't seeing as many resumes.
"It's easier now than it was last year," Chris Jones, the founder of tutoring company Planting Seeds Academic Solutions, which is now in the process of hiring about 40 workers, many of them recent college grads, for its summer camps. "We're getting 50 to 100 applicants per opening," compared with 20 to 30 applicants in 2021 to 2022, a time when he said many applicants didn't want to work in person.
Samuel Clark, the CEO of Broadway Crew, which provides staffing and support for Broadway shows, said he thinks hiring has returned to a more "normal" pace.
"A year ago it was really, really difficult, I was pulling my hair out and paying them an absurd amount of money to make sure they'd be there on time," Clark told CBS MoneyWatch. "Now the power dynamic is coming back in the middle."
For new college grads who are looking for work, Clark said his advice is to hustle, but he noted that landing that first job can be difficult. "Sometimes it's really hard and you have to take the slings and arrows," he added.
What new grads want in a job
As for what new grads want in their first jobs, they're looking for hybrid roles with some in-person and some remote days, Vicki Salemi, a career expert at job site Monster, told CBS New York. And they're very interested in learning about a job's salary, with particular fears of ending up underemployed, she added.
"They want to talk about salary on the job interview," Salemi said. "They might not even pursue the job if salary isn't discussed in the interview."
That's especially important in high-cost cities like New York, which Gusto found is the top metro area for hiring the class of 2024, representing 10% of all new grad hires. The average new grad's starting salary in New York is $64,134, which equates to only $28,500 in other cities when adjusted for the cost of living, Gusto found.
"Our report shows New York as being the most popular city for new grads, but last on the list in terms of affordability," Wilke said. "People this age should consider what cities they see themselves ending up in and jobs those cities have to offer."
- In:
- Employment
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
TwitterveryGood! (28)
Related
- The Louvre will be renovated and the 'Mona Lisa' will have her own room
- Cillian Murphy takes on Catholic Church secrets in new movie 'Small Things Like These'
- Where Kristin Cavallari and Bobby Flay Stand After He Confessed to Sliding Into Her DMs
- Gateway Church removes elders, aiding criminal investigation: 'We denounce sexual abuse'
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- From Innovation to Ascendancy: Roland Quisenberry and WH Alliance Propel the Future of Finance
- Woman asks that battery and assault charges be dropped against Georgia wide receiver Colbie Young
- Sister Wives' Janelle Brown Details First Marriage to Meri Brown's Brother
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- Five NFL teams that could surge in second half of season: Will Jets, 49ers rise?
Ranking
- Current, future North Carolina governor’s challenge of power
- Climate Initiatives Fare Well Across the Country Despite National Political Climate
- Joe Biden's granddaughter Naomi Biden announces Election Day pregnancy: 'We voted'
- USDA sets rule prohibiting processing fees on school lunches for low-income families
- Will the 'Yellowstone' finale be the last episode? What we know about Season 6, spinoffs
- AI FinFlare: DZA Token Partners with Charity, Bringing New Hope to Society
- Gypsy Rose Blanchard posts paternity test results to quell rumors surrounding pregnancy
- Dexter Quisenberry Fuels an Educational Ecosystem, Pioneering a New Era of Smart Education
Recommendation
Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
DWTS’ Artem Chigvintsev Says He Lost $100K in Income After Domestic Violence Arrest
Average rate on a 30-year mortgage in the US rises for 6th straight week
Sean “Diddy” Combs’ Son King Combs Takes Over His Social Media to “Spread Good Energy”
Federal court filings allege official committed perjury in lawsuit tied to Louisiana grain terminal
Don’t wait for a holiday surge. Now is a good time to get your flu and COVID-19 vaccines
Rioters who stormed Capitol after Trump’s 2020 defeat toast his White House return
Pioneer of Quantitative Trading: Damon Quisenberry's Professional Journey