Young college and high school graduates are entering a job market plagued by declining opportunities, rising automation, and structural underemployment, threatening long-term career prospects for an entire generation.
At a Glance
- Unemployment for college grads aged 20–24 reached 6.6%, the highest since the pandemic.
- Entry-level job listings have fallen 17% since April 2019.
- Unemployment among high school graduates aged 20–24 sits at 14.5%.
- 41.2% of recent grads are working in jobs that don’t require a degree.
- AI could eliminate up to 50% of entry-level white-collar roles in coming years.
The Broken Bridge to Employment
Although the overall U.S. jobless rate hovers at 4%, recent graduates face much harsher conditions. According to the Wall Street Journal, unemployment for college grads aged 20–24 surged to 6.6% over the past year. A major driver is the 17% drop in entry-level job postings since 2019, as reported by Handshake, a recruiting platform for students and recent grads.
High school graduates are in even worse shape. Their unemployment rate has reached 14.5%, according to the Federal Reserve Bank of New York, highlighting the disproportionate impact on younger, less credentialed workers.
AI and the Vanishing First Job
The rise of AI is compounding this crisis. Many traditional starter jobs—legal assistants, junior coders, data entry roles—are being automated. The Week reports that artificial intelligence is now threatening as many as half of all entry-level white-collar jobs.
Compounding the issue is underemployment. According to Burning Glass Institute data cited by the Wall Street Journal, 41.2% of recent college grads are working in roles that do not require a degree.
Watch a report: How AI Is Replacing Entry-Level Jobs.
A Generation at Risk
This cohort—already shaped by pandemic-era school disruptions—is now staring down economic instability. A Business Insider investigation finds that Gen Zers who “did everything right”—earned degrees, interned, built résumés—are still struggling to find full-time roles.
Experts suggest pivoting to growing sectors like healthcare and skilled trades, where demand remains strong. Others emphasize adapting quickly to evolving technology trends and building soft skills that AI can’t replicate.
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Author: Editor
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