New graduates are currently experiencing difficulty getting a job. According to report by Axios, unemployed Americans' share of those who are new to the workforce is at a 37-year high.
Axios said that this signifies the reluctance of companies to hire in the midst of continuing economic uncertainty due to tariffs and policy.
According to Axios, the frozen hiring market is a "double-whammy" for Gen Z, said John O'Trakoun, the Richmond Fed economist who conducted the research.
•Many of these job hunters started college at the height of pandemic lockdowns and began their university years on Zoom in their childhood bedrooms.
•The slow labor market is another obstacle to overcome.
In terms of the numbers, Axios said that 13.4 percent of unemployed Americans in July were "new labor force entrants," those seeking positions without prior work experience such as new high school and college graduates. These are notable because:
• It's the highest number since 1988 as the Baby Boomer generation was coming into the job market.
• The number is from a fresh analysis of government data from the Federal Reserve Bank of Richmond.
Axios reported that with jobs are hanging on to them at the moment; unemployment is at a comparatively low 4.2 percent. However, those without work are having a hard time—facing one of the toughest job markets in years.
•The jobless rate for college degree holders (age 22-27), has been around at a rate that has last occurred in the 2010s (excluding 2020 data).
But, they are at a clear advantage within their peer group who have no degrees. Generally, Axios said the unemployment rate for everyone in the age range of 22-27 was 7.4 percent in the second quarter of 2025.
An added sign of how hard it's been to get a job is the share of unemployed workers who have been without a job for 27 weeks or more has risen significantly, the Richmond Fed report stated. Long-term unemployed individuals comprise 25.2 percent of all unemployed workers, which is the highest since Feb. 2022.
According to Axios, the frozen hiring market is a "double-whammy" for Gen Z, said John O'Trakoun, an economist at the Richmond Fed who did the research.