The Silent Crisis:

College Grads Hit

Hardest by Job Market

Graduates spent $250K+ yet struggle to land a job. Here's what the data reveals—and why traditional job search methods are no longer enough.

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Threat to Grads

The Reality Facing New Grads

AI is replacing entry-level jobs. “Entry-level” now requires experience. And hiring freezes are shutting grads out. Together, these forces are redefining what it takes to start a career.

Navigate a Broken Job Market.

For the first time since 1980, grads face higher unemployment than the general population — 6% vs. 4.2%.
— Barron’s
Entry-level hiring is down 23% since 2020, while applications per job are up 30%.
— Bloomberg
Unemployment for young men aged 20–24 has reached 9.6%, nearly double the national average.
— CNN
One-third of "entry-level" jobs now require prior experience.
— Bloomberg
The New York Fed reports 41.2% underemployment for recent grads in Q1 2025.
— New York Fed
Many grads are applying to 300–450+ jobs with no results.
— CNN

The AI Disruption Has Arrived

AI could eliminate up to 50% of entry-level white-collar jobs in 1–5 years, raising unemployment to 10–20%.
— Dario Amodei, Anthropic CEO
Computer science & math grads under age 27 have seen an 8% drop in employment since 2022.
— Bloomberg / CNN
AI is already replacing junior coders, paralegals, and retail associates, gutting the first rungs of the career ladder.
— New York Times
Every major tech CEO is actively planning for large-scale AI job displacement-privately, if not publicly.
— Axios
63% of executives agree AI will absorb many of the tasks currently handled by entry-level employees.
— New York Times (LinkedIn Survey)
Entry-level hiring in tech sector dropped by 73.4% in early 2025—far outpacing overall hiring declines.
— Business Insider
C-suite leaders are pausing hiring while assessing if AI can replace humans.
— Axios
Cost of a Slow Start
Six months of unemployment at age 22 can cost over $100,000 in lifetime earnings.
— Barron’s / Bloomberg consensus
Cost of a Slow Start
Nearly 50% of underemployed grads are still underemployed five years later.
— Bloomberg
Cost of a Slow Start
Only 27% of grads end up in jobs related to their major, revealing a broken pipeline between education and career.
— Career Services Report
Cost of a Slow Start
40–41% of recent grads are underemployed, working in jobs that don’t require a degree.
— Career Services Report
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College Career Centers Aren’t Built for This

Just 8% of grads found their college career center “very helpful.”
— Gallup / Career Services Report
Career Center
Average student-to-career-staff ratio: 1,889–to–1.
— Career Services Report
Career Center
Only 36% of students are satisfied with career services, and just 32% say they’re effective.
— Career Services Report
Career Center
Only half of students ever visit their career center.
— Career Services Report
Career Center
Just 1 in 4 students participate in mock interviews or structured prep.
— Career Services Report

Networking: The Hidden Key to Job Search Success

Networking
70–85% of jobs are filled through networking—not online applications.
— CNBC / NPR
Networking
Only ~2% of online applications result in interviews, while referrals have significantly higher conversion rates.
— Forbes / Jobvite
Networking
Referred candidates are 4x more likely to get hired than those who apply through job boards.
— Zippia / SHRM
Networking
Employee referrals make up 40% of all hires but just 7% of total applicants.
— Harvard Business Review
Networking
47% of unadvertised roles are filled through internal or personal networks.
— U.S. Bureau of Labor Statistics
Networking
35% of LinkedIn users say a simple outreach message led directly to a job opportunity.
— LinkedIn Workforce Report
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PrepU
Crises Beyond Graduation

Why This Crisis Extends Beyond Graduation

The implications of struggling to launch a career extend far beyond temporary unemployment
Financial Consequences
Financial Consequences
Career Trajectory
Career Trajectory Damage
Mental Health Damage
Mental Health & Confidence
$100K+ lost over career
Six months of post-grad unemployment delays earnings and compounds student debt pressure.
43% stay underemployed for 5+ years
Early struggles derail career momentum and shrink long-term potential.
Confidence at record lows for Gen Z
Job market rejection takes a lasting toll on motivation and mental health.
Financial Consequences
Financial Consequences
$100K+ lost over career
Six months of post-grad unemployment delays earnings and compounds student debt pressure.
Career Trajectory Damage
Career Trajectory Damage
43% stay underemployed for 5+ years
Early struggles derail career momentum and shrink long-term potential.
Mental Health Damage
Mental Health & Confidence
Confidence at record lows for Gen Z
Job market rejection takes a lasting toll on motivation and mental health.
PrepU
Crises Beyond Graduation

Don't Let Market Challenges Determine Your Career Future

The job market has changed, but students with smart strategy and support are still landing top roles. Success now demands strong positioning, real relationships, and a clear plan.
See How PrepU Helps Students Win
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