During the admissions process, prospective college students are often sold a dream that their degree is a ticket to career success. However, a recent report from Oxford Economics is drawing attention to the fact that some college graduates are having a harder time finding work than previous generations of tassel turners.

The new report found that recent college graduates made up 12% of the 85% surge in the United States’ unemployment rate since the middle of 2023. Additionally, the unemployment rate among recent college graduates aged 22 to 27 is almost 6%, which is higher than the national average of around 4%.

“The increase in unemployment rates appears highest in professional, scientific, and technical services; finance and insurance; information occupations; and manufacturing, with a slightly smaller increase in unemployment in retail occupations,” explains Wafa Hakim Orman, Ph.D., an associate dean and economics professor at the University of Alabama in Huntsville. 

And that’s especially noteworthy.

“Typically, those with a college degree in a technical or business field have lower unemployment rates and higher salaries than the national average,” Dr. Orman says. “We are used to seeing much higher job growth in technical and IT occupations than average. Now, we're seeing a broadly stable labor market with challenges for recent graduates, which is unusual.”

While there is talk of a looming recession, we are not in one right now. Why are recent graduates having a hard time navigating the job market, and what can parents do? We turned to experts to find out more.

Experts say it’s hard to pinpoint one reason why recent college graduates are having a harder time finding work than others in previous generations.

“Several factors are converging at once,” says Lindsay Tanne, founder and CEO of LogicPrep, a global college admissions consultancy.

Understanding the factors can help parents and kids better prepare for the job market in the immediate and long-term future.

Tech industry giants, once considered invincible, such as Google and Meta, hired in droves during the pandemic and then began mass layoffs in late 2022—right around the time this report began analyzing the struggles recent college graduates were facing in the job market. 

“The tech industry has laid off almost a million workers and reduced hiring since 2022, when it became clear they had been overly optimistic and hired too many people during the pandemic,” Dr. Orman says. “Hiring in tech does go through boom and bust cycles, [but]...the tech industry is much larger now and employs many more people.”

Dr. Orman shares that the tech sector is factoring into the job market shifts in another way: Through AI.

“The report speculates that this may be due to firms hiring fewer entry-level workers and using AI to automate those tasks,” Dr. Orman says. “This is consistent with what we're seeing in terms of rising unemployment rates in IT occupations, which are adopting AI most rapidly.”

Adds Tanne, "AI is replacing or reshaping many roles that were once considered stepping stones.”

Tariffs, federal worker layoffs, and discussion of a potential recession have created a volatile stock market and employment market.

“Businesses are navigating cost uncertainty and political volatility, especially under a tariff-heavy climate,” says Patrice Williams-Lindo, a visibility strategist, workforce futurist, and CEO of the Career Nomad. “That translates into hiring freezes, delayed onboarding, and fewer risks taken on early-career professionals.”

Williams-Lindo understands the plight of college and high school students and their parents, stating that the new report (and the reality behind it) “disrupts the entire promise of college as a safety net.”

“We’ve told an entire generation that if they played by the rules—study hard, pick the 'right' major, graduate on time—the market would reward them,” Williams-Lindo says. “ That social contract is broken. And no amount of resume polishing will fix a structural mismatch between what institutions are producing and what industries are prioritizing.”

Still, Williams-Lindo and other career and economic experts stress that students, job-seekers, and their parents aren’t hopeless and helpless. They shared how parents can help their students better prepare for the current and potentially future job market.

Tanne suggests that prospective college students and their parents should ask questions about the hands-on learning experiences (such as internships) and international experiences that the school offers.

“A number of universities are expanding offerings abroad and even creating international campuses to create global learners and citizens,” Tanne explains. “These experiences help students apply what they learn in the classroom, build real-world skills, and expand their perspective and potential reach.”

Tanne says high school jobs, including bussing tables, scooping ice cream, or working in retail, can pay off years later.

“It helps teens develop their work ethic, garner potential references and recommendations, identify possible fields of interest, and begin crafting a narrative they can carry into future job applications, no matter the role or industry,” Tanne says.

LinkedIn has its place, but one career coach emphasizes that in-person, face-to-face interactions are still optimal. 

"Younger generations have been encouraged to live so much of their lives online and build their networks through social media platforms,” says Nikki Innocent, a modern workplace culture and wellbeing expert. “In the process of entering the workforce, especially as it’s changing so significantly, building more substantive and sticky relationships with people outside of their peer group is very important.”

Innocent recommends encouraging kids to tap into their alumni network or career services opportunities at school. Parents can also use their own networks.

“Ask people in your world if they would be willing to have a conversation with your kid to share how they got where they are, encourage your kid to volunteer or join organizations that offer in-person or at the very least live, direct communication with people in the areas they are interested in,” Innocent says.

Innocent says we’re going to need to learn to work with AI.

​​“Though it may seem daunting with all the news about AI taking our jobs, encourage your kids to get familiar with AI and figure out how they can identify where the AI bounds end and the need for humanity pops up,” Innocent suggests.

Innocent says it’s time to retire the narrow question of “What do you want to be when you grow up?”, explaining that it can contribute to an all-or-nothing mindset.

“Encourage your kids to get really familiar with the aspects of their experience, both formal—in school—and informal—in their everyday life,” Innocent says. “As an entry-level candidate, your first couple of jobs will provide you with skills and education outside of the specifics of the job itself.”

Innocent likens the first five years of a person’s career to intentional dating.

“[You’re] dating to understand the industries, types of companies and leadership style that work best for you, and also dating your professional self and understanding where you shine vs. where you are prone to burnout,” she says.

Williams-Lindo says that it's important to nurture your child's sense of self and suggests starting a family ritual of celebrating weekly wins, even if it’s “sent a scary e-mail” or “updated my bio.”

“This market is disorienting, especially for kids who’ve ‘done everything right,’” Williams-Lindo says. “Your job isn’t just to coach—it’s to believe loudly. Normalize pivots. Celebrate effort. Make space for rest and rejection.”