Class of 2023 college grads face a labor market "in transition," analyst says

As the Class of 2023 graduates, many are turning their attention to the job market. But recent data from Monster.com reveals that nearly 75% of new graduates are worried the current economy will affect their job prospects.

Hiring freezes and layoffs are affecting some industries, and some are wondering what's next. 

This year's graduating class started college in the fall of 2019, just months before the COVID-19 pandemic hit. Now, graduates are facing a labor market that CBS News business analyst Jill Schlesinger says is "in transition."

"We had explosive job growth for sort of the first half of the pandemic era, and things started to turn," she said. "And when the Federal Reserve started raising interest rates and growth started to slow down, we saw job growth start to decelerate."

According to LinkedIn, overall hiring has dropped 29% since April 2022, while hiring for entry-level positions requiring a college degree dropped nearly 32%.

Recent layoffs in the tech and finance industries have further impacted the job landscape.

But Scott Dobroski, Indeed's career trends expert, notes that the Class of 2023 has already grappled with turbulence.

"In their college experience the world flipped upside down. So what we are seeing in how they search for jobs and find jobs — it is working to the advantage of the Class of 2023," Dobroski said. "They are trained in uncertainty and finding the right path that works for them, because they had to do it over the past four years."

Dobroski suggests that graduates focus on building skills and gaining experience rather than fixating on a specific job title — as well as remaining versatile and open to opportunities.

"Many people who thought they'd be going into tech, which has been riddled with layoffs, are actually finding opportunities in retail, travel and tourism, aviation, aerospace and defense in particular," Dobroski said. 

In an uncertain market, negotiation skills remain crucial, as they can impact future pay for years to come. Dobroski recommends the importance of negotiating even in turbulent times.

Despite the uncertainties, many of this year's graduates are optimistic.

More than 88% of job-seeking graduates are confident they will receive job offers shortly after graduation — an even higher percentage than last year, according to Monster.com.