The state of the college grad job market

College students graduating in 2022 and 2023 had the advantage of looking for jobs with some of the strongest hiring projections in recent years. According to the latest job outlook survey from the National Association of Colleges and Employers (NACE), spring hiring projections were up 31.6 percent and 3.9 percent from the previous year, respectively. However, 2024 has seen a slight dip in hiring projections from previous years. Despite this dip, many hiring managers still see the hiring market as good for the class of 2025.

Though the job market largely supports new graduates, conditions have changed since spring of last year. There has been a slight dip in hiring projections since 2023. New hires can expect many things to stay the same, though. Class of 2025 graduates will likely see similar starting salaries and a continuation of hybrid positions. Employers also continue to see online degrees on the same level as in-person degrees and there is a rise in hiring of those with associate degrees.

The job market for college graduates in 2025: What recent grads can expect

While the current job market isn’t as hot as in 2022 and 2023, the overall landscape is still good. Many employers even stated the job outlook was excellent in the NACE survey.

Employers are shifting away from screening applicants for GPA. Instead, they are looking for skills and work experience. Communication, critical thinking skills and teamwork are among the sought-after skills for employers. An intern experience will make an applicant stand out more than standard work experience. Both, however, are a positive mark for applicants.

Internships will make applicants stand out

Experience in the workforce will make job applicants stand out in 2025. When faced with two comparable applicants, employers noted that having internship experience on their resume could be the deciding factor between the two, according to the NACE survey. Internship experience, whether at the company where the applicant is applying or not, sets an applicant apart.

Having internship experience has the largest influence on making an applicant stand out from another similar applicant. This holds more weight than other factors, such as having leadership experience, a high GPA, major or having general work experience.

The job market will be especially hot for new grads in some cities

At 4.2 percent, the nation’s unemployment rate is relatively low, according to the U.S. Bureau of Labor Statistics (BLS). This is good news — not only for new graduates, but for all job seekers. However, there are certain job markets that are doing far better than others.

For instance, South Dakota has one of the lowest unemployment rates at 1.9 percent, according to the BLS, while Nevada has one of the highest unemployment rates at 5.7 percent.

Graduates may consider cities with low unemployment rates and affordable housing to keep costs down. According to a recent Bankrate analysis, 10 such hidden gems in the U.S. include cities like Roanoke, Virginia; Green Bay, Wisconsin; and Wichita, Kansas, among others.

All of these cities are seeing strong job growth, affordable housing markets and growing wellness and culture scenes.

Competition for remote jobs will remain steep

After taking many of their classes online and collaborating in a digital environment with their peers, the class of 2025 is highly prepared for remote work. But competition for these roles remains strong — not just among new graduates, but from workers at all stages of their careers.

“While it’s hard to predict anything with certainty, we know professionals’ desire for flexibility has grown since the pandemic,” says Josh Graff, managing director of EMEA/LATAM and global VP at LinkedIn.

At the same time, fully remote positions are less common. According to data from LinkedIn, about 10 percent of U.S. job postings are remote, but they receive applications from 46 percent of applicants. This tension between employee and employer preferences is likely to continue.

Select industries are rapidly growing and looking for workers

Some industries saw faster growth than others in 2024, according to the fourth quarter 2024 ManpowerGroup Employment Outlook Survey. Information technology had the strongest job outlook for nine consecutive quarters. Finance and real estate, healthcare and life sciences and industrials and materials are the next three industries with the highest job outlook, according to survey results.

Recent data from the BLS highlights the following industries as seeing strong growth in the U.S. currently:

• Healthcare
• Leisure and hospitality
• Government
• Transportation equipment manufacturing

If your degree has prepared you for work in any of these industries specifically, you will likely have your pick of opportunities.

Salaries continue to increase, and inflation is cooling down

Inflation rates trended down slightly between March and September 2024, but so have wage growth rates. The good news is wage growth rates continue to exceed inflation rates, as they have since February of 2023.

With wage growth remaining steady and inflation calming down somewhat from the past few years, new graduates can expect to have more of a handle on their spending. There’s been a slight uptick in the inflation rate in the last few months of 2024, so keep an eye on it to fully grasp how far your salary will take you as you search for a job in 2025.

Tips to save money as a new college grad in a tough economy

New grads are not immune to the effects of inflation. Inflation affects everything from food to gas. Even if you land a job relatively fast, you’ll have to get creative to keep these costs from eating away a good chunk of your budget. Some strategies to try include finding affordable housing, keeping your spending down and taking on a side hustle.

Look for lower-cost housing

If your parents are up for it, you might consider moving in with them for a while. You’ll save big on housing costs, and you can also take advantage of the rent-free time to save aggressively. This will ensure that you’re ready to put down that security deposit — or down payment — once you’re financially stable.

If moving home isn’t an option or your family needs financial help too, you can:

• Consider adding a roommate. If you can add another person or two, you can cut your housing costs drastically — not to mention your utility bills.
• Talk to your landlord or property manager. You may be able to get on a payment plan or defer your payments for a certain period of time.
• Look for housing assistance. Many states and municipalities offer rent and housing payment assistance for residents in need.

Depending on your household’s income level, you may also qualify for Section 8 housing. This usually requires just 30 percent of your income.

Take on a side gig or part-time job

Food delivery services, like DoorDash, Uber Eats and other similar apps, have exploded since the start of the pandemic. The same is true for grocery delivery services, like Instacart and Shipt.

Other potential side gigs include:

• Dog walking.
• Housesitting.
• Mowing lawns.
• Babysitting or nannying.

Though these gigs don’t come with massive salaries, they can help you stay afloat during difficult times. They also allow for pretty flexible schedules, which is helpful if you line up an interview for a day job and need time off.

Get serious about cutting corners

Keeping your costs low is critical if you’re not bringing in much income. You’ll want to reduce things like your grocery bill, utilities, gas and more.

• Shop at discount stores. Costco and Aldi have both groceries and general household items. The local dollar store may also have some staples.
• Review your utility and service providers. If it’s been a few years since you chose your power company or phone provider, chances are you’re not getting the best rate. Compare options and don’t be afraid to call your current providers to negotiate.
• Avoid having the heater and air conditioning on. Electricity costs can get expensive. Where possible, rely on space heaters or bundle up.
• Cut the cord. You’d be surprised at how much you can save by cutting out cable or other entertainment services.
• Commit to DIYing more. Cook at home instead of ordering takeout, or cancel that gym membership and work out at home instead.
• Compare quotes for your insurance. It’s smart to compare quotes for your insurance every few years, especially if your life circumstances have changed.

Dealing with student loan debt

Payments on federal student loans have resumed, an expense many people are still getting used to again. Identify areas where you can trim back costs and reallocate money for student debt payments.

You may also want to look into whether you qualify for an income-driven repayment plan. Doing so can potentially reduce your monthly payments, though you will want to research whether it is the best option available.

Refinance private student loans to get a better interest rate

Though many borrowers of private student loans have not enjoyed a payment pause, refinancing is an option if you’re in a financial bind. Refinancing your private loans can be particularly useful.

If you have loans with a variable interest rate, you could lock in a fixed rate, protecting you from rising interest. If you’re in a better financial position than when you first took out your loans, you could also qualify for a lower interest rate.

Refinancing can also help you lower your monthly bill by allowing you to swap your current term for a longer one. This also means you’ll pay more interest over the life of the loan, which you should keep in mind when weighing your options. Refinancing federal student loans will also cause you to lose access to certain programs and benefits.

Ask your lender about rate discounts

Another way to save money on your student loans is by asking your lender whether it offers any discounts you may qualify for. Many lenders, for instance, offer a 0.25 percent interest rate discount just for enrolling in automatic payments.

This may not seem like a lot on the surface, but it still makes a difference over time. Once you find a job, there’s also a chance that your employer may help you pay off your student loan debt. Not all companies offer this, but it’s worth asking HR once you’re hired.

Bottom line

The job market may not be quite as hot as it has been in the past few years, but it’s still looking good for recent college grads. Inflation has cooled in 2024, but it hasn’t completely leveled off.

As you search for a job, consider your salary versus the cost of everyday items. It’s important to find ways to earn more and spend less while things improve — especially if you have student loans. Your wallet and your future self will thank you.