Employers Expect Hiring to Level Off for the College Class of 2025

BETHLEHEM, PA—Nearly 90% of employers anticipate increasing (24.6%) or maintaining (64.6%) hiring levels for the college Class of 2025 compared to the Class of 2024, according to a new report from the National Association of Colleges and Employers (NACE)

NACE’s Job Outlook 2025 Spring Update found that although just 11% of respondents are planning to decrease hires, their planned cuts mean overall hiring projections have fallen for the Class of 2025. In fall 2024, employers reported plans to hire 7.3% more graduates from the Class of 2025 than they did from the Class of 2024. Currently, they expect to increase hires by just 0.6%. 

“The overall change from the early hiring projections is largely driven by more companies deciding to maintain their hiring and greater decreases by some larger companies in various industries,” says Shawn VanDerziel, NACE’s president and chief executive officer.

“That said, most industries are hiring, but because the market is tightening, there will be more competition for jobs. There are steps college students can take to enhance their attractiveness to potential employers. This starts with inventorying their knowledge, skills, and abilities and thinking broadly about how they can directly meet the needs of the jobs for which they are applying.” 

Employers are looking for strong communication, critical thinking, teamwork, and other career-readiness skills from college students entering the job market. This is, in part, because many employers are dropping GPA as a screening tool for new college hires. In fact, for the third straight year, less than 40% of respondents will screen candidates by GPA. 

Instead, many are using skills-based hiring to help them identify candidates with potential. 

“Whether or not they screen by GPA, employers hiring for entry-level positions report that they strongly consider a student’s major, industry, and internship experience. These are key areas where students gain, hone, and demonstrate they have the skills necessary to successfully move into the workplace,” VanDerziel explains.

Nearly two-thirds of employers indicate they use skills-based hiring practices for entry-level professional positions. Among this group, more than 65% report using skills-based hiring practices all or most of the time.

“Because employers use skills-based hiring most often when interviewing and screening candidates, students need to put their skills front and center on their resume and in the interview to connect their coursework, projects, internships, and other experiences to demonstrate the skills employers are seeking,” VanDerziel explains.

“How can students identify the skills that are important to employers? Many employers tailor their job descriptions to let candidates know exactly what skills they want.”

 

 

About the Job Outlook 2025 Spring Update Report: The Job Outlook 2025 Spring Update survey was conducted from February 18 – March 21, 2025. Of the 216 total respondents, 176 were NACE employer members, representing 22.2% of eligible member respondents. The Job Outlook 2025 Spring Update survey was also distributed to nonmember companies; this group provided an additional 40 responses. The survey updates hiring projections for the Class of 2025; those projections were collected from NACE employer members from August 5 – September 16, 2024, and were reported in Job Outlook 2025, which was published in November 2024. The Job Outlook 2025 Spring Update report is presented in slide format; it is available for download on NACEWeb
 
About the National Association of Colleges and Employers: Established in 1956, the National Association of Colleges and Employers (NACE) is the only professional association in the United States that connects more than 13,000 college career services professionals, more than 3,800 early career talent acquisition professionals, and more than 400 business solution providers that serve this community.
 
NACE is the premier source of market research on career readiness, the employment of recent college graduates, and the college-to-career transition. NACE forecasts hiring and trends in the job market; tracks salaries, recruiting and hiring practices, and student attitudes and outcomes; and identifies best practices and benchmarks.
 
NACE offers its members unparalleled research, networking and professional development opportunities, guidance on standards and ethics, and advocacy on key issues. For more information, visit www.naceweb.org. NACE maintains a virtual press room for the media.