The United States job market in 2025 is proving to be one of the most challenging in recent memory, affecting both American citizens and non-Americans seeking employment. Recent data reveals that this year’s college graduates are facing a particularly difficult environment, with the unemployment rate for new graduates rising to 5.8% in March 2025, up from 4.6% a year earlier. Underemployment is also a growing concern, with over 41% of graduates working in roles that do not require a college degree. The situation is not just a reflection of economic cycles but also of deeper shifts in the labor market, policy changes, and technological disruption.
For many job seekers, the process has become increasingly grueling. The number of job postings has dropped by 15% in the past year, while the volume of applications has surged by 30%. This heightened competition means that even qualified candidates are finding it difficult to secure interviews, let alone job offers. The average job seeker now submits dozens of applications and often receives only a handful of responses. The hiring process has also become more prolonged and demanding, with multiple interview rounds and lengthy assessment periods, leading to widespread frustration and burnout among applicants.
Immigrants and International Students Face Additional Barriers:
While the job market is tough for all, non-Americans-especially international students and skilled immigrants-are encountering even greater obstacles. Over 300,000 Indian students are currently in the US, with nearly 100,000 participating in the Optional Practical Training (OPT) program, which allows them to gain work experience after graduation. However, this pathway has become increasingly uncertain. Immigration policies from previous years, including Trump-era restrictions, continue to affect visa holders. The American Immigration Lawyers Association reported that half of the 327 recent student visa revocations involved Indian nationals, often for minor infractions like parking violations. Although some records have been reinstated, the uncertainty has resulted in missed opportunities and added stress.
A proposed bill to end the OPT program has further alarmed international students, many of whom rely on it as a bridge to longer-term work visas or permanent residency. Political scrutiny is also on the rise, with several Indian and other international students facing detention or deportation for participating in political protests. High-profile cases have drawn attention to the risks of political expression for non-citizens, adding another layer of complexity to the job search for foreign nationals.
Beyond legal and political challenges, skilled immigrants face hurdles such as credential recognition, licensing requirements, and language barriers. More than two million highly-skilled immigrants in the US are either underemployed or unemployed, often working in jobs that do not utilize their qualifications. This phenomenon, known as “brain waste,” not only affects the individuals but also represents a loss for the US economy. The process of retraining, paying for new certifications, and navigating unfamiliar job application systems can be costly and discouraging.
Technology, Policy Changes, and Economic Shifts Deepen the Crisis:
The rise of artificial intelligence and automation is another factor reducing job opportunities, particularly for entry-level positions traditionally filled by recent graduates and immigrants. Many companies are using AI-driven screening tools that filter out large numbers of applicants before a human ever reviews their materials. This, combined with the surge in applications, means that the odds of landing a job through traditional online platforms have dropped significantly.
At the same time, federal policy changes have contributed to the uncertainty. The Trump administration’s freeze on federal hiring and widespread layoffs in government agencies have led to a contraction in public sector opportunities. Private sector employers, facing their own uncertainties due to tariff policies and economic headwinds, are also cautious about expanding their workforce. Even as the US economy added 177,000 jobs in April, stagnant wages and inflation have dampened the outlook for both job seekers and employers.
For graduates and skilled workers carrying student loan debt, the situation is even more precarious. The reinstatement of involuntary debt collections has pushed over 20% of federal loan borrowers into delinquency, adding financial stress to the already difficult task of finding stable employment.
A Tough Path Forward for Job Searchers:
The current landscape paints a sobering picture for anyone entering the US job market in 2025. Both Americans and non-Americans are facing unprecedented hurdles, from increased competition and technological disruption to legal uncertainties and political scrutiny. For international students and skilled immigrants, the challenges are compounded by visa issues, credentialing barriers, and shifting immigration policies.
Despite these headwinds, experts suggest that job seekers remain persistent, seek out career counseling, and consider retraining or upskilling to improve their prospects. Accessible and affordable training programs have shown promise in helping immigrants and recent graduates adapt to the evolving job market. However, until broader policy and economic shifts occur, the struggle to secure meaningful employment in the US is likely to persist for both citizens and newcomers alike.
