Goldman Sachs Warns the Job Market Is Turning Against College Graduates
Goldman Sachs is warning that the U.S. job market may be quietly shifting in ways that hurt recent college graduates the most.
In a recent research note, analysts pointed to signs that entry-level hiring is slowing even as overall employment data remains relatively stable. While headline job numbers continue to show resilience, economists say the early-career segment is becoming more competitive, and more uncertain.
A Tougher Start for New Graduates
Data on youth unemployment and entry-level job postings suggests that new graduates are facing longer job searches and fewer immediate offers compared to recent years.
Goldman analysts noted that hiring has become more selective in sectors such as technology, finance, and consulting, industries that traditionally absorb large numbers of college graduates. Companies are still hiring, but many are prioritizing experienced workers over first-time job seekers.
For students graduating this spring, that could mean:
- More competition for fewer openings
- Delayed start dates
- Increased pressure to accept lower-paying roles
Why the Shift Is Happening
Economists say several forces are converging.
Higher borrowing costs have made companies more cautious about expanding payrolls. At the same time, some industries that rapidly hired in 2021 and 2022 are now restructuring or trimming costs.
Artificial intelligence and automation are also reshaping entry-level work, particularly in white-collar roles that previously served as stepping stones for graduates.
The result: a job market that looks strong on the surface but feels tighter for those just starting out.
What It Means for the Broader Economy
Recent graduates are often a key driver of consumer spending in housing, transportation, and discretionary goods. If more young workers struggle to secure stable employment, it could ripple through broader economic trends.
For now, Goldman Sachs stops short of predicting a major downturn. But the firm’s warning suggests that the labor market’s strength may not be evenly distributed.
As commencement season approaches, the question for many students may no longer be whether jobs exist, but whether the path in has narrowed.
