A career counselor who has advised thousands of college seniors says that 2 out of every 3 are stressed about the competitive job market and how to stand out.
The students in the class of 2025 are nearing the end of their college careers, but they're already disillusioned with their job prospects upon graduation.
According to a report from Handshake, the college career resource, 57% of rising seniors are pessimistic about their future job plans, which is an increase from 49% last year. The survey was conducted among 1,925 students graduating with a bachelor's degree in 2025, between June 14-July 5.
Nearly 2 in 3 rising seniors cite the tight job market as the primary reason for their pessimism, with competition for entry-level jobs being a significant source of stress in their post-grad outlook.
The number of job openings on Handshake has decreased compared to 2023 levels, mirroring national trends in job creation and hiring.
The class of 2025 students are submitting 24% more applications per job on average than the class of 2024 students at the same time last year.
"One finance major from the class of 2025 stated in a Handshake report that they applied to over 100 job openings before landing their current internship. They also mentioned that full-time job applications are starting early, with some companies already making offers to students graduating in spring 2025. The finance major is currently going through the process with one company and hopes it will work out, but if not, they plan to apply to as many jobs as possible."
The post-college years are becoming less appealing to students due to their concerns about student loan debt, the November elections, and generative AI.
Christine Cruzvergara, the chief education strategy officer at Handshake, states that while short-term pessimism exists among students about their careers, they remain optimistic in the long run. To help them overcome this initial hurdle, she emphasizes the importance of getting them started.
How to stand out in a competitive job market
One of the best ways for students to succeed in a competitive job market is to expand the range of job opportunities they're willing to consider.
Instead of going into tech, a computer science student who originally wanted to work for a tech company might consider other industries where she can still use her tech skills, as tech jobs are down by about 20,000 this year over last year.
According to Handshake data, many students who initially sought employment at tech companies have shifted to government and healthcare jobs, which are known for their stability and consistent hiring.
Begin networking and meet people in your field, whether they have the job role you want or are in an industry you're exploring, says Cruzvergara.
Applying to jobs too widely could result in burnout, she advises against it.
"Ensure that you are precise with yourself regarding your interests, abilities, and the job positions you are applying for, advises Cruzvergara. After determining these factors, apply to as many jobs as possible that match your criteria."
If you don't consider the things I mentioned, you may not perform well even if you get an interview.
Student loan payments are back on the table
The job market isn't the only thing worrying the class of 2025.
After years of being paused, federal student loans are being considered again, and about half of today's college graduates say their student debt is a significant source of stress. This stress level increases among women, Black students, and first-generation students with student loans.
Young prospects are pushing for loan repayment support, which has led to more employers introducing the benefit. Cruzvergara says this trend is increasing.
Over 18% of government jobs provide college debt assistance, while 14% of health care roles offer student loan repayment help. Non-profits and education jobs also provide this benefit, with 9% and 6% respectively.
Students believe the November election will impact their careers
Government jobs are becoming more attractive to college students due to job security, but there is also concern about the impact of elected officials on their future.
Over 46% of the class of 2025 students think that the election will affect their professional paths.
The survey ended in early July before the assassination attempt on former President Donald Trump, President Joe Biden's decision to end his re-election campaign, and Vice President Kamala Harris being named the presumptive Democratic nominee.
Students are acutely aware of how each candidate's alignment with stability, the economy, climate change, and mental health could affect their professional lives.
She states that regardless of the field students choose, national policy will have a ripple effect on their jobs.
Long-term optimism
While the Class of 2025 students are utilizing generative AI, they are concerned about its potential impact on their job prospects. Specifically, 70% of them believe that the technology needs to be more strictly regulated.
According to Cruzvergara, this pragmatic perspective could be beneficial: "I believe that this class and beyond will play a crucial role in shaping our country's regulations. Employers should consider hiring individuals from this class who possess ethical and moral foundations and are willing to grapple with larger issues."
The students of the class of 2025 are generally optimistic about their future, with 61% expressing interest in managing a team, 48% aspiring to become a company executive, 47% planning to start their own business, and 46% considering going back to school.
New paths and developing new skills are valued by 43% of workers who expect to stay in the same type of job for most of their career, while 38% plan to pivot at least once in their careers.
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