College Seniors Are Pessimistic About Their Career Prospects

A college degree is often considered a key stepping stone toward a career. But today’s prospective graduates aren’t so sure.

More than half (57%) of the Class of 2025 expressed pessimism about their career prospects after graduation, up from 49% for the previous year’s class, according to an August survey from job postings platform Handshake.

Sure, the job market has changed since the peak of the pandemic-era worker shortages that left companies vying for candidates. But the unemployment rate still remains relatively low, and the economy is adding jobs every month. So what has students so down?

Causes for Concern

Nearly two in three (63%) of these soon-to-be college graduates cited job competition as a main worry. The burden of student loans looming over future incomes, and the unpredictable ways artificial intelligence could change the workplace also caused concern.

On top of that, the recent softening in the labor market has gone anything but unnoticed. As investors and market watchers are anxiously awaiting the Federal Reserve to start cutting interest rates, every softer data point has been under a microscope. And this summer, hiring has slowed, while the unemployment rate ticked higher, suggesting higher competition for job seekers.

Consequently, recent and prospective graduates are applying to many more jobs than in previous years, Handshake data says.

Nevertheless, most college seniors believe their education has contributed positively to their ability to secure a well-paying job (68%) or a meaningful career (72%), while the vast majority (88%) feel it has been a net positive for personal growth.

Job-Securing Strategies

The job hunt can feel relentless, but there are ways to stand out, even in a competitive labor landscape. Broadening the search for jobs, focusing on transferable skills, and leveraging networking can benefit job seekers.

Check out additional tips from career expert Chris Lovell’s May column.

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