The job market in the US is under pressure, and the young graduates have started feeling the heat. With 25% of total unemployment or 1 in 4 of the total number of unemployed, comprising Americans with four-year college degrees, the competition in the job market is getting tense.
According to ADP Research, US private firms lost an average of 13,500 jobs each week in the four weeks ended November 8, 2025, a significant rise over the prior period’s 2,500 weekly decrease. According to the data, job losses increased in late October and early November when big corporations, like Amazon and Target, announced significant worker reductions. The official monthly employment data for November is slated to be released on December 3.
Even though total nonfarm payroll employment edged up by 119,000 in September, the young workforce seems to be left out.
There are fewer entry-level positions available for college graduates entering the labor market. Recent US Bureau of Labor Statistics shows the unemployment rate for bachelor’s degree-holders has risen to 2.8% in September, up a half-percentage point from a year earlier.
Job Market Data
In September, more than 1.9 million Americans aged 25 and above with at least a bachelor’s degree were unemployed, accounting for one-fourth of the entire unemployment population.
Both the unemployment rate, at 4.4 percent, and the number of unemployed people, at 7.6 million, changed little in September. Job losses were largely seen in transportation and warehousing and in the federal government. However, employment continued to trend up in health care, food services and drinking places, and social assistance.
There is no country-wide job data available, but among the major worker groups, the unemployment rates for adult women (4.2 percent) and Asians (4.4 percent) increased in September.
Layoffs in the US
At a time when not all of the young workforce is getting an opportunity to work, the news of US layoffs is on the rise.
The professional and technical services sector, comprising industries such as computer systems design, management consulting, and scientific research and development, experienced a decline in headcount during the first nine months of the year.
US companies dealt out the most layoffs in October by firing about 153,074 employees, marking a 183% rise from September (54,064).
October layoff figures pushed the total number of job cuts this year beyond 1 million. With employers announcing 1,099,500 layoffs so far, the figures have surged 65% from the 664,839 job cuts called out in the first ten months of 2024.
In a big development in the job market, the U.S. wireless carrier Verizon recently announced that it will cut more than 13,000 jobs in its largest single layoff as it works to shrink costs and restructure operations.
No Jobs For Young Graduates
Research from the Burning Glass Institute indicates that structural changes, including AI automation of junior tasks and lean staffing practices, are transforming entry-level jobs and increasing underemployment among new degree holders.
“For the first time in modern history, a bachelor’s degree is no longer a reliable path to professional employment,” Gad Levanon, chief economist at the Burning Glass Institute, told CNBC.
Large employers are increasingly replacing entry-level workers with artificial intelligence to improve efficiency and reduce costs, amid concerns about economic conditions, ongoing inflation, and a decline in consumer spending, which may be further diminishing entry-level job opportunities.
According to the National Association of Colleges and Employers, Members of the Class of 2025 received fewer job offers on average than those graduating with the Class of 2024; however, they accepted those offers at a higher rate.