The dramatic rise in unemployment among Americans under 25—especially recent graduates —has become one of the most troubling economic headlines of 2025. Recent insights from economists, central bankers, and labor market analysts signal that this appears to be a uniquely American challenge, underpinned by a “no hire, no fire” economy rather than solely by the rapid ascent of artificial intelligence.

For many Gen Z workers, the struggle to land a job can feel isolating and fuel self-doubt. But that frustration recently got some high-level validation : Federal Reserve Chair Jerome Powell echoed economists’ concerns about the cooling labor market, telling reporters at his regular press conference following the Federal Open Market Committee that it’s an “interesting labor market” right now

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