Austin Job Market Declines for College Graduates

The availability of high-quality job opportunities for recent college graduates is plummeting in the Greater Austin area, according to new rankings released by payroll management site ADP. The Austin-Round Rock metro dropped from fourth to 13th nationally for recent graduate job opportunities as hiring slowed from 2.8% to 2.4%, according to the payroll processor’s latest research report.

The rankings considered hiring rates for workers in their 20s, wages, and affordability using ADP payroll data from January 2025 through January 2026. The estimated annual wage for recent graduates in the Greater Austin area was $59,072, while the affordability-adjusted annual wage was $60,237.

Austin’s decline mirrors broader concerns about a cooling labor market, particularly for white-collar and highly educated workers. Workers with higher levels of formal education are “less optimistic” about the job market in 2025 than those with less schooling, according to Sarah Fioroni, a senior research fellow consultant at Gallup.

Although unemployment remains relatively low, hiring has slowed, especially for professional roles, Gallup said in a new analysis released Tuesday. In a separate January survey of U.S. adults, just 27% of college graduates said now is a good time to find a quality job, compared with 44% of adults without a college degree.

Gallup said the gap is the widest recorded since 2001. Federal data also shows hiring activity is at its lowest level since 2013. White-collar industries have seen some of the steepest declines in job postings. Compared with pre-2020 levels, software developer job listings were down 29% in March, while marketing listings fell 27% and media and communications roles dropped 36%.