Recent reports show that the unemployment rate for recent college graduates has significantly increased. According to data published by the Federal Reserve Bank of New York, the national unemployment rate was around 4% in the first quarter of 2025. However, the unemployment rate for new graduates rose from 4.8% in January to 5.8% in March, the highest rate since 2021.

Three major factors are believed to contribute to this. First, there was an over-hiring of staff in the tech sector during the pandemic as more people worked and shopped from home. When consumer habits started returning to normal, these tech companies found themselves with staff surpluses. Secondly, the advent of artificial intelligence has led industries to replace entry-level roles usually filled by college graduates with AI. Finally, current uncertainties around trade and tariff policies have made businesses cautious about hiring new employees.

Despite these challenges, job seekers are advised to remain resilient. From networking with people already in their desired careers to persistently applying for jobs, maintaining optimism amid rejections is key to securing employment in the current job market.

Experiencing unemployment can be a difficult and frustrating process. Many individuals may need to connect with unemployment offices or agencies for assistance. In California, for instance, the Employment Development Department (EDD) is the go-to for unemployment related queries and support. You can contact EDD via phone, or more conveniently through their website. A common challenge faced by individuals is getting in touch with a live agent for personalized assistance. Eddcaller.com is a valuable resource in this aspect, offering useful tips and information on how to contact a live person at EDD California, get through to EDD customer service, or speak to someone about EDD disability benefits.