The high cost of graduation: How 2025's changing job market is shaping careers

For post-COVID-19 college graduates, entering the workforce is proving to be more complicated than sending out a few resumes and waiting for a callback. With rising competition, skyrocketing living costs, and employers demanding more experience than ever before, the current job market has brought unexpected challenges.

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According to the National Association of Colleges and Employers (NACE), hiring for this year's graduating class is expected to increase by 7.3% compared to last year’s. However, despite more job openings, many graduates are still struggling to find positions. The unemployment rate for recent graduates with a bachelor’s degree or higher rose from 5.3% in 2016 and 2017, to 6.2% in February 2025. The job market for entry-level positions appears to be growing increasingly competitive. 

The challenges vary depending on the industry. While those in fields like technology, healthcare and finance might have an advantage, the expectation for hands-on experience still remains high. For example, tech companies are seeking applicants with practical skills in areas like Artificial Intelligence and cybersecurity, not just knowledge about the field. 

“Being a recent graduate, a lot of positions I apply for are entry-level, but then I need all of this real-world experience,” said Jaylyn Mangaroo, a recent multi-media graduate.

In creative fields like marketing and media, employers typically expect impressive portfolios and experience with tools like Adobe Acrobat, Adobe Premier Pro and data analysis software. Graduates without these technical skills might find it harder to stand out in the crowd. 

Freddy Santory, co-founder of AMP Media Productions, discussed how he views the mentality of fresh graduates. 

“Graduates often enter the workforce expecting opportunities based on what's on paper, while we are looking for people who can demonstrate practical skills and adaptability from day one,” mentioned Santory. 

Furthermore, industries like education, nonprofits, and government are hiring at a slower pace due to budget cuts and post-COVID-19 reconstruction. According to an article from Reuters, the U.S. Department of Education is shutting down, and law school deans are already warning that transferring federal student loan management to the Small Business Administration could cause serious financial issues for students. 

AP News reported that universities are laying off staff and cutting positions due to funding reductions. Johns Hopkins is reportedly eliminating over 2,200 jobs after losing USAID funding. With fewer stable positions available, a lot of grads are turning to part-time or freelance work instead of landing that secure, full-time job right after college. As a result, many graduates find themselves filling part-time or freelance roles instead of secure, full-time and stable positions. 

“It is not even about trying to find a job in your desired field, it’s finding a job in general,” Mangaroo. “It takes people forever to get back to you, even if you have what they are looking for.”

The COVID-19 pandemic changed a lot about the way people work and changed the job market in ways that still exist today. Remote positions have only become more common and while this opens up global job opportunities, it has also increased the competition. The World Economic Forum reports the shift to remote work has led to a larger candidate pool for remote positions, thereby increasing competition. It is even harder to secure a job in a crowded market, especially when fresh graduates often find themselves competing with candidates from all over the world. 

Remote work allows for more flexibility, challenging young adults to transition from a structured college life to self-discipline and time management. A study published in Frontiers in Psychology showed that self-control plays a large role in the effectiveness of remote work. The research suggests that employees with higher self-control are better at denying distractions and staying productive while working from home. The need for strong self-discipline and time management skills are important to navigate this kind of independence. 

The challenge is not just the job search, but also the financial reality that post-graduation holds. With the cost of living on the rise, many young adults claim that starting salaries simply are not enough to cover basic expenses. According to the U.S. Bureau of Labor Statistics, inflation has pushed up costs for housing, transportation, and healthcare, making it harder for graduates to get by on entry-level wages. For some, student loan debt is also piling up, adding even more pressure.

 “Pay is not great, and with how things are now, you cannot afford to live comfortably just off of entry-level positions,” said Mangaroo. 

Even those willing to settle for lower-paying roles still find it difficult to cover expenses, especially housing costs. 

“Even if I settled for a job that might pay less for an entry-level job—I still can’t afford living expenses,” Mangaroo added. “It’s a similar story for so many people. We graduate, we cannot find jobs, and we are forced to go back home.”

Some hiring managers see the disconnect between what graduates expect and what companies need. 

“People’s expectations of what they are worth sometimes aren’t aligned. I want people who are going to see my business the same way I see it,” said Dawn Graubert, Santory’s teammate and co-founder of AMP Media Productions. 

Meanwhile, Santory put it bluntly: "I have hired over 2,000 people over my career. What I want is someone who isn’t going to mess up what I have going on. I want people who are going to see my business the same way I see it.” 

Mental health is becoming a major concern for those entering the workforce. College students are reportedly often anxious when they job hunt in a competitive market and manage uncertainty. A survey by the American Psychological Association found that 46% of recent grads are stressed about finding a job and 36% are anxious about their long-term career paths.

With more and more pressure, one thing remains clear: navigating the post-grad job market is not a solo act. While degrees and skill sets certainly matter, it is often relationships that open the most meaningful doors. According to HubSpot, 85% of jobs are filled through networking. 

Networking, whether through internships, alumni connections, career fairs, or even social media, often appears to be the difference between a resume that floats and one that lands. As the class of 2025 steps into the workforce, building connections may not only lead to job offers but also mentorship, support, and long-term career growth. In an unpredictable market, a human connection could still be the best tool graduates have to both stand out and stay standing.

By Daniella Pacheco