Recent college graduates are facing the most challenging entry-level job market in five years, with only 30% of 2025 graduates finding full-time employment in their field of study, according to a new report from Cengage Group.
Three-quarters of employers (76%) report hiring the same number or fewer entry-level workers compared to last year—up from 69% in 2024. The shift represents a dramatic reversal from 2022, when 65% of employers struggled to find entry-level talent. Today, only 35% report such difficulties.
The contraction stems from multiple factors: a tight labor market (cited by 51% of employers), the increasing adoption of artificial intelligence (46%), and broader economic pressures (46%).
As competition intensifies, degree requirements are making a comeback. Seventy-one percent of employers now require a two- or four-year degree for entry-level positions, up sharply from 55% in 2024. This trend reverses the recent movement toward skills-based hiring, with only 22% of employers eliminating degree requirements in 2025 compared to 48% the previous year.
The employment statistics tell a stark story: 33% of 2025 graduates remain unemployed and actively seeking work, compared to 20% of 2024 graduates. Meanwhile, 26% have found jobs unrelated to their field of study.
Perhaps most troubling, 48% of recent graduates report feeling unprepared to even apply for entry-level positions in their field. Only 51% express confidence in their AI skills when job hunting—a critical gap given employers' emphasis on technological adaptation.
