A Decline in Federal Jobs' Appeal for New Grads

Not long ago, federal employment opportunities were a hot topic on TikTok where employees praised the sector for its security and perks, offering tips for securing such positions. However, that enthusiasm has waned significantly.

In a particularly competitive year, federal roles were unique in their decline in applications, a trend highlighted by recent data from Handshake. The federal sector experienced a notable drop in application interest, surpassed only by the tech industry.

Applications to government roles, spanning federal, state, and local levels, made up approximately 4.4% of all applications from the Class of 2025, decreasing from around 5.5% from the previous class, as reported by Handshake.

Shift in Job Market Trends

Last year, government positions were in high demand among college graduates, who valued job stability above all else. According to Christine Cruzvergara, Handshake's chief education strategy officer, this changed with various executive orders introduced early this year.

In January, federal job applications were considerably higher than those for state and local roles. Yet by April, the trend reversed, with state and local employers seeing a surge in interest.

Rising Interest in State and Local Opportunities

Applications to federal jobs plummeted by 40% over the year, whereas interest in local and state positions rose by 31% and 35%, respectively. Handshake reported this unexpected shift in preferences within the government job market.

The executive orders resulted in a significant pivot in application trends. The federal government imposed hiring restrictions, while individual states like New York and California actively campaigned for personnel, adapting to shifts brought on by federal workforce reductions.

This year's graduates prioritize location over stability, explaining the increased attraction to state and local roles, which provide greater geographical flexibility.

Return to Private Sector Roles

Some grads, initially set on federal employment, are reconsidering and opting for private sector opportunities. Handshake noted a rise in applications for tech, finance, healthcare, and consulting jobs among seniors who previously aimed for federal positions.

This represents a shift back to industries like finance and tech that were less favored the previous year. There's also a noted interest in fields such as nonprofits, law, and real estate.

This move pivot is attributed to practicality. Graduates are showing flexibility, willing to apply their skills across various industries rather than sticking to a single career path.

According to Handshake's findings, less than half of the graduating students maintain the same career aspirations they started college with, indicating evolving preferences and adaptability.