Fresh college graduates are set to enter one of the most difficult job markets in more than ten years, according to the latest employment numbers.
Federal reserve data ending in March shows recent college graduates have a 5.8% unemployment rate, compared to the 4% overall unemployment rate. As a whole, workers from 22 to 27 years old face a 6.9% unemployment rate.
Some economists believe those rates show that business are slowing down hiring in the face of economic uncertainty and volatile tariff policy from President Donald Trump.
A recent report from ADP reveals companies are hiring at the slowest pace in two years despite a seemingly strong jobs market. The economy added 139,000 jobs in May, down from 147,000 the month before.
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Much of the gains came in the healthcare and restaurant sectors. Other categories like information technology and accounting have stayed relatively low in the last year.
Artificial intelligence may continue to play some role in certain weakening sectors. Amazon CEO Andy Jassy, for example, has said increased use of AI will likely lead to reductions in the company's corporate workforce over the next several years.
Historically low interest rates during the pandemic also drove expansion in the IT space, which economists say is now cooling off and translating to slower hiring.
