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Why New Graduates Are Struggling And How Small Business Owners Can Take Help

Erika Willitzer
Aug 2
2 min read

The dismal job market for new graduates in 2025 is creating both challenges and unexpected opportunities—especially for small business owners who are ready to think creatively and act boldly. Let’s break down what’s happening and how small-town entrepreneurs can turn this moment into a strategic advantage.

Recent grads are facing one of the toughest job markets in a decade, with unemployment rates hovering around 5.3%—higher than the general workforce.

Here’s why:

Economic Uncertainty: Trade policies, inflation concerns, and interest rate hikes have made employers hesitant to hire.
AI Disruption: Entry-level roles in customer service, marketing, and tech are increasingly automated, shrinking traditional job pathways.
Hiring Freezes: Many companies are in a “wait-and-see” mode, delaying new hires due to unpredictable market conditions.
Overqualification Meets Underemployment: Even grads with in-demand degrees like computer science are struggling to land interviews.

💡 How Small Businesses Can Turn This Into an Opportunity

While big corporations are pulling back, small businesses—especially in rural communities—can step up and benefit from this influx of eager, talented young professionals.

1. Tap Into Affordable Talent

New grads are often willing to work for lower starting salaries in exchange for experience and growth.
Small businesses can offer hands-on roles that build real-world skills—something many large firms no longer prioritize.

2. Build a Future-Ready Team

Young professionals bring fresh perspectives, digital fluency, and adaptability.
They’re often well-versed in social media, AI tools, and remote collaboration platforms—skills that can modernize your operations.

3. Create Apprenticeship or Fellowship Programs

Formalize short-term roles that offer training, mentorship, and community impact.
These programs can attract recent grads looking for purpose-driven work and help you build a pipeline of loyal talent.

4. Position Your Business as a Launchpad

Market your business as a place where young professionals can grow, innovate, and make a difference.
Highlight your commitment to community, creativity, and flexibility—qualities that resonate with Gen Z job seekers.

5. Collaborate with Local Colleges and Trade Schools

Partner on job fairs, internships, or co-op programs.
Offer guest lectures or workshops to build visibility and attract candidates who align with your mission.

🌱 Real-World Example: Small Town Wow Strategy

Imagine a Small Town Wow campaign called “Grow Local Talent”:

Feature local grads in blog posts and social media.
Offer a “First Job Fellowship” for recent grads to work on marketing, community outreach, or product development.
Host a virtual job fair spotlighting small-town businesses ready to hire.

This not only supports young professionals—it positions your business as a leader in rural revitalization.