US Job Market Cools, Hits Young Workers Hardest

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2025-09-06 15:17:01

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The US labor market shows clear signs of softening, with the youngest workers bearing the brunt. Unemployment among workers aged 16 to 24 ROSE to 10.5% in August—the first time crossing the 10% threshold since the pandemic.

Recent college graduates face particularly stark challenges. Their unemployment rate reached 4.8% in June 2025, outpacing the broader workforce's 4% and far exceeding the 7.4% rate for young workers without degrees. This marks a reversal from pre-pandemic trends when degree-holders typically fared better.

The divergence emerged post-2021, with economists noting weakness in white-collar sectors that traditionally absorbed graduates. The shift reflects broader structural changes in hiring patterns and economic priorities.

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