New grads face a tough job market with 5.3% unemployment, as economic factors and AI impact hiring.

New graduates are facing a tough job market with an unemployment rate of 5.3%, up from 4% for the general workforce. Hiring has slowed, with only 73,000 jobs added in July. Economic uncertainty, shifting tariff policies, federal spending cuts, and the rise of AI replacing entry-level roles contribute to the difficulties. Graduates are struggling to find jobs even in high-demand fields like tech, with some forced to take lower-paying retail positions.