Shocking Report: College Grads Face Worst Job Market in 5 Years Due to Skills Gap

A new national report reveals that recent college graduates are encountering the toughest entry-level job market in five years, with a significant gap in practical skills exacerbating the issue.

Only 30% of 2025 college graduates and 41% of 2024 graduates found entry-level jobs in their fields, while 48% felt unprepared to apply for such positions. The Cengage Group 2025 Graduate Employability Report highlights these findings, based on a survey of 865 hiring managers, 698 instructors, and 971 recent graduates in the U.S.

A Tight Job Market

Three-quarters (76%) of employers are hiring the same or fewer entry-level employees compared to last year, attributed to a tightening labor market (51%), the rise of AI (46%), and economic pressures (46%). Formal degree requirements have surged to 71% for entry-level roles, up from 55% in 2024, leading to:

• Just 30% of 2025 graduates securing full-time jobs related to their degree
• 26% employed in unrelated fields
• 33% unemployed and actively seeking work

Michael Hansen, CEO of Cengage Group, emphasized the need to rethink education to close the skills mismatch and support sustainable careers.

Disconnects Between Educators, Employers, and Graduates

There is a widening gap in expectations: employers prioritize job-specific technical abilities, while educators focus on soft skills like critical thinking. This leaves 48% of graduates feeling unprepared for job applications, with only 51% confident in their AI skills. Kimberly Russell of Cengage Group stressed the importance of alignment in workforce development.

Importance of Connections

Graduates report that personal referrals (25%), internships (22%), and interview skills (20%) are more decisive than their degree (17%) in securing employment. However, 20% felt their education didn't help foster professional connections, and over one-third wished for more institutional support in job placement and employer collaboration.

Hansen concluded that putting employability at the center of learning is crucial for long-term career success and economic growth.