As the caps come off and graduation photos are posted, a new reality sets in for the class of 2025: the transition from campus to career is proving more complicated than expected.
Some graduates are stepping directly into full-time roles. Many others, however, are entering one of the most competitive entry-level job markets in years.
The Majors Facing the Highest Unemployment
A recent analysis from the Federal Reserve Bank of New York examined 73 college majors using 2024 data from the U.S. Census Bureau. The focus was on “recent graduates,” defined as 22- to 27-year-olds with at least a bachelor’s degree.
The findings highlight notable variation across disciplines.
Anthropology ranked highest, with unemployment near 8%. Several art-related majors — including fine arts and performing arts — also posted elevated unemployment rates above 6%. Early childhood education similarly appeared among the higher-unemployment group.
Yet the pattern isn’t cleanly divided between “practical” and “impractical” majors. Some technical fields that typically command high salaries, including computer-related disciplines, also showed relatively elevated unemployment for recent grads.
In December, the overall unemployment rate for recent college graduates reached 5.6%, up from 4.8% at the beginning of 2025. While that figure remains modest by historical standards, the direction of change is concerning — especially for workers just entering the labor force.
Unemployment vs. Underemployment
Daniel Zhao, chief economist at Glassdoor, noted that unemployment alone doesn’t tell the full story.
Underemployment — defined as working in a role that typically does not require a college degree — paints a clearer picture of how effectively graduates are utilizing their education.
Computer engineering and computer science graduates had underemployment rates below 20%. In contrast, anthropology, fine arts, and performing arts majors had underemployment rates above 50%.
The distinction reflects different labor market dynamics.
Graduates in high-paying technical fields may choose to remain unemployed longer while waiting for a desirable role in tech. The expected return on investment is substantial, and some may have the financial flexibility to delay accepting less-aligned work.
By contrast, graduates in lower-paying or more competitive creative fields often lack that cushion. They may accept roles outside their field more quickly, contributing to higher underemployment rates.
A “Low-Hire, Low-Fire” Economy
The broader labor market context matters. The U.S. just recorded its slowest year of job growth since 2003, excluding recession periods. Layoffs have not surged, and overall unemployment remains low. However, hiring has slowed significantly compared to the post-pandemic boom.
A research note from Goldman Sachs described the current environment as “low-hire, low-fire,” warning that young workers risk becoming “locked out” of the labor market if hiring remains subdued.
When companies aren’t expanding aggressively, entry-level roles are often the first to shrink.
Rethinking the Tech Career Path
Even for computer science graduates, opportunity may lie beyond the traditional Big Tech pathway.
Hany Farid, a professor at the University of California, Berkeley, has argued that the most compelling applications of computer science aren’t necessarily at the “usual suspects” like Facebook, Google, or Amazon.
Instead, growth areas are emerging at the intersection of computing and other industries — including:
Computational drug discovery
Computational finance
Digital humanities
Applied AI across healthcare, law, and media
These hybrid domains often require both technical fluency and domain-specific knowledge, creating differentiated career pathways beyond mainstream tech firms.
What Graduates Can Do Now
In a slower hiring environment, strategy matters.
Zhao recommends that job seekers:
Leverage university career services and alumni networks
Expand their job search to adjacent industries
Identify transferable skills rather than narrowly targeting job titles
Consider interdisciplinary applications of their degree
The early career phase is always volatile, but the current environment requires added flexibility. While headline unemployment rates are not alarming, the combination of slower hiring and rising underemployment creates real friction for new graduates.
For the class of 2025, the transition from degree to career may require patience, adaptability, and a broader view of where opportunity truly lies.