College grads face a choppy job market as tough competition and hiring curbs limit roles

Bachelor’s in physics… workin’ in software sales. As the market for entry-level jobs grows more cutthroat, 40% of 2023 college grads are applying to industries or roles they hadn’t considered before. The unemployment rate for grads aged 20 to 24 has doubled since 2021, hitting 4.6% in February. It’s a reversal from 2018, when grads were more likely to get hired than seasoned workers. This semester, we’ve got a college-hiring conundrum:

• While unemployment is historically low, and there are more job openings than available workers, a lot of employers are pulling back on early offers to college seniors.

Sending LinkedIn requests since 2020… The entry-level talent pool has filled up after lots of recent grads were laid off or took time off during the pandemic (think: #vanlife adventure). This year, employers plan to hire 14% more grads than last year, one survey suggested. But snagging top roles is becoming more competitive, and employers are engaging in fewer bidding wars for younger talent. Now grads are casting wider nets and working overtime to polish their applications. Meanwhile, popular employers are curbing entry-level hiring as mass layoffs roll on.

• Tech check: Amazon postponed start dates for some ’23 grads for up to six months, and Meta recently began hiring freezes after sweeping layoffs.
• Sofa days: Furniture retailer Wayfair has cut 10% of its workforce and is limiting hiring for full-time roles and internships.
• Consulting crunch: Last month McKinsey said it would let go of 2K workers in one of the consulting firm’s biggest cuts ever.