The Increasing Challenge for the Class of 2025
Recent graduates stepping into the workforce in 2025 face a notably tougher job market than their predecessors. The Federal Reserve Bank of New York reports that the unemployment rate among new graduates surged to 5.8% in March 2025, up from 4.6% just a year earlier. Even more telling, over 41% of recent grads are underemployed—working in positions unrelated to their degrees.
What’s driving this trend? Economic uncertainties fueled by fluctuating global trade policies, cautious hiring freezes, and the transformative impact of artificial intelligence are reshaping employer priorities. More companies are shifting focus from formal degrees to practical skills and demonstrated experience.
Degrees Alone No Longer Guarantee Employment
Sarah Skelton, co-founder and managing director of staffing firm Flourish, who has personally placed over 1,000 recent grads into roles, sheds light on a common misconception among new graduates.
“There’s sometimes a perception that having a university degree alone secures a certain tier of job,” Skelton explains. “But employers often favor candidates who show hands-on skills, work readiness, and a strong hunger to contribute—qualities that sometimes come from practical experience rather than a diploma.”
It’s important to note that the relevance of degrees varies by industry: while some business or sales roles prioritize skills over academics, professions like medicine continue to require formal qualifications.
The Catch-22: You Need Experience to Get Experience
For many graduates, the job search feels like a paradox: you need relevant experience to land a job, but without that job you can’t gain experience. Skelton offers valuable strategies to break this cycle:
- Optimize Your LinkedIn Profile: Actively tailor it toward the roles you want, showcasing targeted skills and projects.
- Engage in Extracurriculars: Volunteering or joining community sports can demonstrate teamwork and commitment.
- Pursue Internships and Job Shadowing: Even unpaid opportunities can provide critical exposure and contacts.
- Network Relentlessly: Attend industry events, seek mentors, and ask for referrals.
- Build Side Projects: Taking initiative through personal or freelance endeavors highlights creativity and drive.
- Immerse Yourself in Industry Knowledge: Use podcasts, books, and online resources to stay informed and passionate.
Skelton emphasizes, “Employers want to see enthusiasm and proactivity, not just desperation. Show them you’re invested in their company and the role.”
Proactive Outreach Can Make All the Difference
One tactic often overlooked is reaching out directly to hiring managers on professional networks like LinkedIn. This direct approach signals agency and eagerness—a key differentiator when employers sift through a mountain of applications.
Skelton also encourages considering unpaid work—or “foot-in-the-door” gigs—as a stepping stone. Her advice acknowledges the reality:
“It’s not glamorous, and it might feel a bit humbling, but these opportunities showcase your drive and help build your track record.”
Mastering the Interview ‘Close’
Drawing from her extensive experience placing sales professionals, Skelton shares a powerful interview technique for new grads aiming to leave a memorable impression.
At the interview’s conclusion, say:
“I’m really enthusiastic about this opportunity and would love to work with your team. Before we wrap up, could you share your thoughts on my interview? Are there any reservations or areas you'd suggest I improve?”
This approach not only gives candidates a chance to address doubts candidly but also demonstrates confidence and openness—traits valued in any industry.
Following up with a personalized thank-you email remains essential for reinforcing professionalism and genuine interest.
Moving Beyond the Diploma: What Employers Are Really Looking For
While degrees still hold value, many employers in today’s dynamic labor market prioritize attributes like:
- Drive and Motivation
- Coachability and Adaptability
- Strong Work Ethic and Grit
- Potential to Grow and Learn
New graduates who highlight these traits alongside relevant skills often gain a crucial edge.
Conclusion: Navigating the Complex Job Market with Strategy and Heart
The job landscape for the class of 2025 demands more than just impressive transcripts. Success depends on creativity, persistence, and a willingness to demonstrate value beyond a diploma. From building networks to mastering interview techniques, the roadmap requires deliberate effort and self-belief.
Editor’s Note
As the economy evolves and AI disrupts traditional roles, new graduates must rethink their approach to entering the workforce. Policymakers and educators should also reflect on how to better align higher education with market demands and equip students for real-world challenges. For job seekers, adopting a growth mindset and embracing unconventional avenues can transform obstacles into opportunities. What steps will you take today to stand out in tomorrow’s job market?
