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U.S. New Grads Face 42.5% Underemployment as ‘Entry‑Level’ Jobs Raise the Bar

Automated screening alongside higher experience bars is shutting graduates out.

Overview

  • Underemployment for recent U.S. graduates is reported at 42.5%, the worst since 2020, counting those stuck outside their field or in roles below their skill level.
  • Many postings labeled entry‑level now ask for three to five years of experience, which blocks most new degree holders from applying.
  • Employers increasingly use automated resume filters that screen candidates before any human review, which pushes applicants to tailor keywords for each role.
  • Graduates describe long searches with little feedback, including one senior who applied to about 90 jobs, got around 10 interviews, and saw mostly automated rejections and ghosting.
  • Labor analysts point to a hiring slowdown that began in 2022 and to employers pulling back on training, which together have tightened access to early‑career jobs.