
Trends in Hiring, 2025 Graduate Readiness for the Workforce
The Class of 2025 is prioritizing location, job stability and benefits when considering their first job postgraduation.
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Commencement season brings excitement to college campuses as community members look to celebrate the accomplishments of the graduating class and usher them into their next chapter of life.
The Class of 2025, however, is gearing up to enter a challenging environment, whether thatās a competitive application cycle for gaining admission to graduate school or a tighter job market compared to previous years.
Inside Higher Ed compiled 25 data points regarding the Class of 2025 and the workforce they will enter, including levels of career preparedness, challenges in the workplace and the value of higher education in reaching career goals.
- Over half of seniors feel pessimistic about starting their careers because they worry about a competitive job market and a lack of job security.
- Seventy-eightĀ percent of students rank job stability as a āvery importantā attribute in potential employers, followed by a healthy workplace culture.
- Eighty-eightĀ percent of college juniors and seniors believe their coursework is adequately preparing them for entry-level roles in their chosen fields.
- Eight out of 10 soon-to-be graduates plan to start work within three months of graduating.
- Hiring for college graduates is down 16Ā percent compared to last year, and 44Ā percent below 2022 levels.
- Starting salaries are up 3.8Ā percent year over year, outpacing inflationās growth of 2.4Ā percent, as of March.
- Seventy-nineĀ percent of young adults say health benefits are a āhighā or āvery highā priority for them when considering a job opportunity.
- Desired location is a top priority for 73Ā percent of 2025 graduates in deciding which jobs to apply for, followed by job stability (70Ā percent). Over two-thirds said theyāre looking for a job near their family.
- If they choose to relocate for work, cost of living is the most pressing issue for new graduates (90Ā percent), followed by a diverse and tolerant community (64Ā percent). Ninety-eightĀ percent of young adults say cost of living is their No.Ā 1 money stressor, as well.
- Flexibility remains key for graduates, with 43Ā percent looking for hybrid work, defined as being on-site for two or three days a week. Forty-fourĀ percent cited the ability to work from home as an important benefit, and over half want more than two weeks of vacation or paid time off in their first year of work.
- Roughly half of entry-level job postings employers plan to create will be hybrid, and about 45Ā percent will be for fully in-person roles.
- Engineering students are expected to be the highest paid of all the majors pursued by the class of 2025, earning an average of $78,731 this year.
- Recent college graduates who participated in experiential learning while in college earn on average $59,059, compared to their peers without internships, who earn an average of $44,048.
- As of last fall, only half of first-generation students in the Class of 2025 had completed an internship, compared to 66Ā percent of their peers.
- About 12Ā percent of students have not participated in an internship and do not expect to do so before finishing their degreeālower than the average of 35Ā percent of workers who enter the workforce without an internship or other relevant work experience.
- Ninety-eightĀ percent of employers say their organization is struggling to find talent, but nearly 90Ā percent say they avoid hiring recent gradsāin part, as 60Ā percent noted, because they lack real-world experience.
- One-third of hiring managers say recent graduates lack a strong work ethic, and one in four say graduates are underprepared for interviews.
- Over half (57Ā percent) of HR departments expect to increase spending on training and development in the year ahead.
- As of March, nearly 6Ā percent of recent graduates (ages 22 to 27 who hold a bachelorās degree or higher) were unemployed, compared with 2.7Ā percent of all college graduates. The unemployment rate for all young workers (ages 22 to 27) is approximately 7Ā percent.
- Twenty-fiveĀ percent of young adults are struggling to find jobs in their intended career fields; 62Ā percent arenāt employed in the career they intended to pursue after graduation.
- Nearly 90Ā percent of students chose their major with a specific job or career path in mind.
- Finding purposeful work is critical to GenĀ Zās job satisfaction, and more than half say meaningful work is important when evaluating a potential employer.
- One-quarter of young adults already have a side hustle, and 37Ā percent of Gen Z want to start a side hustle.
- Ninety-sevenĀ percent of human resources leaders say itās important that new hires have a foundational understanding of business and technology, including in such areas as artificial intelligence, data analytics and IT.
- GenĀ Y and GenĀ Z workers are more likely than their older peers to worry they will lose their job or their job will be eliminated by generative AI.
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