Recent analysis from economists and labor experts reveals a disappointing job market for recent college graduates and job seekers in the United States.
“The job market is quite dismal at the moment,” shared Mandi Woodruff-Santos, a career coach and personal finance advisor.
She emphasized, “It’s exceedingly challenging, especially for seasoned professionals, making it all the more difficult for recent graduates.”
‘Tough summer’ for job seekers
This situation might appear paradoxical.
The national unemployment rate stood at a relatively low 4.2% in May, and the layoff rate has also reached historic lows, indicating that employers are retaining their workforce.
However, the rate of hiring has stagnated, marking April as the month with the slowest onboarding in over a decade, aside from the initial months of the Covid pandemic.
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The rate at which workers are quitting—often seen as a sign of worker confidence—has also dropped below pre-pandemic levels, contrasting sharply with the trends observed during the “great resignation” of 2021 and 2022.
“This summer is shaping up to be challenging for anyone seeking full-time employment,” warned Heather Long, chief economist at Navy Federal Credit Union, in an email on Friday.
She noted, “We are in an ‘abundance of caution economy,’ where businesses are only hiring for essential roles, leaving recent graduates and job seekers experiencing significant difficulties.”
Steady job market erosion ‘cannot continue forever’
Despite the sluggish job landscape, Long remarked that a recession does not seem imminent.
For instance, businesses added more jobs than anticipated in May, although the growth rate has notably declined—a cause for concern among economists.
Firms are displaying reluctance to hire amid economic uncertainty.
Confidence among CEOs fell sharply in the second quarter of 2025, marking the largest quarterly drop since 1976, as reported by The Conference Board. Concerns regarding geopolitical instability and trade policies were highlighted by Roger Ferguson Jr., the chair emeritus of the board.
The percentage of CEOs optimistic about expanding their workforce diminished slightly, decreasing from 32% in Q1 to 28% in Q2, while those anticipating workforce reductions increased by 1 point, now at 28%.
“The ongoing decline in the U.S. job market is not sustainable—eventually, there won’t be much remaining to give,” stated Cory Stahle, an economist at the Indeed Hiring Lab, in a recent analysis.
“In a low-hiring, slow-growth environment, employers may only be able to retain their current staff for so long before layoffs become necessary—leading to rising unemployment rates even as job prospects diminish,” Stahle elaborated.
Don’t underestimate personal connections
Woodruff-Santos emphasized the importance of personal networks in navigating this challenging job market. She encouraged job seekers to take proactive steps to build professional relationships.
Her top piece of advice? Seek out networking opportunities that push you outside your comfort zone.
“Place yourself in environments where you may not know anyone, where you might need assistance, and develop the confidence to seek help,” Woodruff-Santos advised.
If circumstances force you to accept a less-than-ideal job for financial stability, she recommends maintaining your relevance in your desired field by acquiring new skills through training, certifications, or freelance projects.
Furthermore, consider joining professional organizations to connect with others in your field, enhancing your visibility to potential employers and keeping your skills competitive, she suggested.
Woodruff-Santos reassured job seekers during these trying times, stating, “The job market has faced difficulties before and will likely do so again. This may not be your first encounter with a challenging job market, but you will persevere.”
