Millions of new college graduates are entering the workforce just as entry-level job prospects are fizzling.

Despite the strong labor market, it’s becoming tougher for newcomers to break in. Hiring is slowing, especially for recent graduates, with coveted white-collar employers pulling back on new postings. Just 13 percent of entry-level job seekers found work in the past six months, down from a 2022 peak of 20 percent, according to a Goldman Sachs analysis of Commerce Department data.
“The class of 2024 may need to buckle in for a bit of a rough ride this summer,” said Becky Frankiewicz, North America president at staffing firm ManpowerGroup. “People aren’t leaving their jobs, employers aren’t laying off. Everyone is staying put - and that’s bad news if you’re trying to get a foot in the door.”

Although the odds of finding a job have improved from pre-pandemic levels for many workers, that’s not the case for new entrants. After a recent hiring spree, many employers are scaling back on job openings. Even when they do hire, they’re increasingly looking for experienced workers who can “be immediately productive,” Frankiewicz said.