The unemployment rate for recent graduates reached 5.8% in March 2025, according to the Federal Reserve Bank of New York.
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Formal degrees aren’t cutting it anymore for some industries. Instead, many companies are prioritizing skills and experience-based hiring, Sarah Skelton, co-founder and managing director of staffing and recruiting firm Flourish, told CNBC Make It.
The class of 2025 is stepping into a challenging and competitive job market. The unemployment rate for recent graduates reached 5.8% in March, up from 4.6% a year earlier, according to data from the Federal Reserve Bank of New York.
Meanwhile, the share of new graduates who are “underemployed” or working jobs that don’t require their degrees, rose to 41.2% in March, up from 40.6% a year earlier. Employers are becoming more cautious amid global uncertainty fueled by on-again, off-again tariff policies, hiring freezes, and the proliferation of artificial intelligence.
In this environment where it’s difficult to get your foot in the door, one mistake that some recent graduates make is assuming that their degree will automatically get them a job.
“I feel like sometimes there’s a certain perception that: ‘I’ve been to uni, I’ve got this degree, I’m going to come in at this level,'” said Skelton, who said she’s placed more than 1,000 graduates into jobs throughout her career.
“Whereas somebody else that maybe left school, has been [employed], is work ready and can demonstrate skills and is a bit more hungry for it — some businesses are preferring that,” she said.
She added that it depends on the industry, of course. While degrees may be less of a consideration when hiring business or sales roles, it’ll be more significant for other industries like medicine.
‘You need experience to get experience’
New graduates entering the job market commonly face a “Catch-22” situation where “you need experience to get experience.”
To overcome these challenges, Skelton suggested getting creative by doing the following:
- Maximize LinkedIn: Get on the social media platform early in your career journey and tailor your profile to the jobs you are applying for.
- Find extracurricular activities: Join sports teams or volunteer for local charities.
- Be creative in gaining experience: Do internships or ask to shadow roles you are interested in.
- Build connections: Attend networking events, find mentors and ask for referrals.
- Create your own experience: Work on side projects or business ideas in your free time.
- Build industry knowledge: Immerse yourself into industry-related podcasts, books and more.
“I think you have to look at the bigger picture, and you’ve got to get a bit more creative with the applications to stand out,” said Skelton. “Basically, be proactive and show you are keen.” Businesses want to know that candidates want to work for them, not just that they are “desperate to get a job.”
She said that reaching out directly to hiring managers on LinkedIn can show hunger and agency, which can help a candidate stand out. Offering unpaid work could also be a way to get your foot in the door.
“[You can] run up to a business proactively and say: ‘Can I come in and do some unpaid [work]? I know it’s not glamorous. I know it may feel like … a bit demeaning, but fundamentally, you’ve got to set yourself apart from the others,” she said.
The ‘close’ in an interview
As someone who has placed many salespeople into roles, Skelton suggested using this “closing technique” as a parting statement at the end of an interview:
“Look, I’m really enthusiastic about this opportunity. I’d really love the chance to work with you … Before we conclude, could I just ask: ‘What have been your thoughts on me in the interview? Is there anything you could see that I could improve, or [do you have] any reservations?'”
Saying this at the end of the interview gives the candidate a chance to address any of the interviewer’s potential reservations.
“[In] sales, it’s known as a closing technique,” said Skelton.
Following the interview, candidates should always remember to follow up with an email thanking the interviewee for their time, she said.
While formal degrees are still relevant, candidates shouldn’t rely on them to land a job. Many businesses are prioritizing the experience, skills and characteristics of job seekers such as drive, coachability, work ethic, grit, potential and more, said Skelton.
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