Class of 2023 college grads are confident about finding a job, despite layoffs and a slowing economy

• 2023 college grads are confident about finding a job, even amid increasing layoffs and a slowing economy.
• They are the first class to have every year of their college experience affected by the pandemic.
• Almost half of graduates expect their starting salary to be higher than those offered in previous years.

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Northeastern University students celebrate the conclusion of their University's 121st undergraduate commencement at Fenway Park by throwing their caps in the air.

Matthew J. Lee | Boston Globe | Getty Images

Members of the college graduation class of 2023 walking across the stage this month to receive their long-awaited diplomas are confident about their chances of finding a job.

That's despite a U.S. economy and labor market that are slowing — and job losses that are rising. The number of Americans filing new claims for jobless benefits recently jumped to the highest level since late 2021.

According to Monster's 2023 State of the Graduate Report, the 2023 college grads are more confident than last year's graduates were about job prospects. And this is a notable class: the first to have every year of their college experience affected by the Covid pandemic.

According to the survey, the class of 2023 is 7% more confident about finding a job than members of the class of 2022. While this jump in confidence may come as a surprise, experts believe that the lack of normalcy this class experienced throughout their time in college has equipped them with skill sets beyond those of previous classes, making these graduates feel more ready to enter the working world. 

"One out of two graduates is basically expecting a higher starting salary this year, despite what's going on in the economy and widespread layoffs," said Monster career expert Vicki Salemi.

The timing of the pandemic may have actually benefitted this class when it came to internships, according to Salemi. The class of 2022 were sophomores when the pandemic hit, so many of them weren't able to complete the internships that they had lined up. By comparison, the class of 2023 were freshmen at the start of the pandemic, so they may have not necessarily been thinking about internships yet. By the time they were, remote and hybrid arrangements were well-established and Covid-19 restrictions were easing, enabling them to gain work experience in their desired field.  

Still a job seekers' market  

"This class has gone through the gamut of changes," said Scott Dobroski, a career trends expert at Indeed. "It's no surprise that they're more optimistic in terms of finding a job, because they know they can use the same kind of grit, nimbleness, flexibility, and creative solutions [they used] to graduate."

About half of American workers remain confident in job opportunities, according to the latest data from The Conference Board's consumer confidence index — 48.4% of consumers said jobs were "plentiful," up slightly from 47.9% month over month, while only 11.1% of consumers said jobs were "hard to get," down slightly from 11.4% last month. The government's JOLTS report shows that job openings are on the decline, though still number in the many millions. Meanwhile, The Conference Board's employment index shows that job openings and quits have declined — implying less workers are job hopping — and compensation growth is softening. Microsoft recently told employees there will be no annual merit increases in pay this year.

College grads are aware of the recent economic headlines: 74% of this year's graduates say they are also concerned about how today's economy will affect their job prospects, according to the Monster survey. 

But, "it is still very much a job seekers' market," Dobroski said.

With growing salary transparency laws, job seekers are really benefitting, and this year's graduates are using these new laws to their advantage, which is especially helpful as salary and flexibility are their top work priorities.   

"Grads have salary information at their fingertips in terms of knowing what they're worth and knowing what to expect," Salemi said. "That's something that's new for them that wasn't necessarily the case as much even last year." 

The pandemic also catapulted to the forefront the importance of establishing a healthier work-life balance. The majority of workers feel burned out, and Gen Z is feeling it the most compared with other generations, according to a recent report from Indeed. With such widespread motivation loss, workers of all generations are ready to say goodbye to hustle culture.  

"Finding a job has now been redefined," Dobroski said. "A job does not always mean full-time work, 40 hours a week, Monday through Friday, nine to five." 

While certain graduates from the class of 2023 may end up working a traditional job, they are much more open to part-time work, gig work, temporary work and having multiple jobs. The pandemic also made these graduates more comfortable with remote work. The Monster survey shows that 73% of graduates are more likely to apply to a job if it allows them to work remotely.  

"This new class did much of their collegiate experience in a remote and then a hybrid environment," Dobroski said. "Many of them may never experience what it is like to be in an office five days a week."

For some, that corporate setting is intimidating. Monster's survey found that 43% of 2023 graduates said that their job after college will be their first time in a corporate setting, and 37% feel like they don't have sufficient in-person working experience.

After years of remote work, there's a sense of comfort, stability, and normalcy in working from home. That's just one more way the class of 2023 is reshaping the world of work.  

To join the CNBC Workforce Executive Council, apply at cnbccouncils.com/wec.