The Top 10 US Cities Where New Grads Are Actually Getting Hired in 2025

While headlines scream about the worst job market for new graduates since the pandemic, savvy grads are quietly landing great opportunities – they just know where to look.

The unemployment rate for recent college graduates jumped to 5.8 percent in the first quarter of 2025—the highest reading since 2021, and entry-level hiring is down 23% compared to March 2020. But this national picture doesn’t tell the whole story.

The reality is that certain cities are bucking the trend, actively hiring new graduates while offering livable wages and reasonable costs. We analyzed data from multiple sources including WalletHub, Realtor.com, Federal Reserve Bank research, and recent hiring reports to identify where the Class of 2025 can actually launch successful careers.

By the end of this article, you’ll know exactly which cities offer the best combination of job opportunities, starting salaries, and affordability – plus insider tips on why these markets are thriving while others struggle. We’ll also link to our ultimate new graduate job search timeline to help you time your search perfectly.

The Reality Check: Why Location Matters More Than Ever

Interview Guys Tip: Don’t just follow the crowd to expensive coastal cities. The data shows that mid-sized cities often provide better value and faster career growth for new graduates.

The job market facing the Class of 2025 is genuinely challenging. Gusto forecasts that the average May and June hiring rate for the Class of 2025 will be 4.8% – 44% lower than the Class of 2022’s hiring rate of 8.7%. Meanwhile, 85% of unemployment since the middle of 2023 could be attributed to people just entering the workforce.

But here’s what the doom-and-gloom headlines miss: certain cities are experiencing economic growth, business expansion, and strategic hiring initiatives that create opportunities for smart job seekers. Economic diversification, lower overhead costs for businesses, and strategic positioning are helping these markets thrive while others stagnate.

The average projected starting salary in the U.S. for the class of 2025 at the bachelor’s degree level is $68,680, but purchasing power varies dramatically by location. A $65,000 salary in Kansas City provides significantly more lifestyle value than $85,000 in San Francisco when you factor in housing, transportation, and daily expenses.

The roommate reality is also crucial for planning. 64 percent of people ages 18 to 24 pay between 31 percent and 65 percent of their income on rent, making affordability calculations essential for financial stability.

Top 10 Cities for New Graduate Hiring in 2025

1. Atlanta, Georgia

Atlanta claims the top spot in 2025 with a high median income near $85,400 and strong job satisfaction scores, plus one of the highest income growth rates at 8.2% annually. This Southern powerhouse has reclaimed its position from San Francisco as the premier destination for launching careers.

Why Atlanta is thriving: The city serves as a major corporate headquarters hub, with a diverse economy spanning logistics, media, finance, and healthcare. Delta Air Lines, Coca-Cola, Home Depot, and CNN all call Atlanta home, creating a robust ecosystem of opportunities across industries.

The numbers work in your favor: High vacancy rate (9.3%), strong job market (24.7%), and a hiring index of 124 mean you’ll have options and leverage in negotiations. The city’s continued growth in the film and media industry also creates unique opportunities for creative professionals.

Best for: Business professionals, logistics specialists, media and communications roles, healthcare workers, and anyone looking to break into corporate America with room for rapid advancement.

2. Austin, Texas

Leading the list thanks to an 18.9% rent-to-income ratio and booming job market, Austin represents the perfect storm of opportunity and affordability. The “Silicon Hills” continues to attract major tech companies while maintaining a relatively reasonable cost of living.

The tech advantage is real: Major companies like Dell, IBM, Tesla, and Apple have significant operations here, creating a pipeline of opportunities in software engineering, IT, and digital marketing. But Austin’s appeal extends beyond tech into the creative economy, including music, arts, and media.

Affordability win: Austin went from unaffordable (35.2%) to affordable (28.3%) in one year, making it one of the few major tech hubs where new graduates can actually afford to live without sacrificing their entire paycheck to rent.

Best for: Software developers, tech professionals, creative industry workers, digital marketers, and anyone seeking the energy of a major tech hub without Silicon Valley prices.

3. Raleigh, North Carolina

One of the fastest-growing cities in the U.S., expecting significant job growth over the next ten years in education, manufacturing, and trade. Raleigh’s emergence as an East Coast tech hub makes it a smart bet for long-term career growth.

Research Triangle advantage: The presence of NC State University, Duke University, and UNC Chapel Hill creates a talent pipeline that feeds directly into local companies. Apple, Google, and established tech companies are building significant campuses here, while Research Triangle Park provides opportunities in biomanufacturing and agricultural biotechnology.

The university connection: Local graduates have built-in networking opportunities, and the continuous flow of educated talent keeps the job market dynamic and competitive for employers, not just job seekers.

Best for: Tech professionals, biotech researchers, healthcare workers, and anyone interested in working at the intersection of technology and research.

4. Minneapolis, Minnesota

Earns the number one spot as the best city for a career change with unemployment rate of just 3.5%, and the data shows it’s equally strong for new graduates. Lowest rent-to-income ratio (19.7%) and highest share of recent college grads (6.3%) create a supportive environment for career launch.

Balanced lifestyle with growth potential: The city offers high-quality parks, vibrant arts scene, and extensive bike paths around sparkling lakes. The tech sector is experiencing significant growth with a projected 20% increase in tech roles by 2025, making it an emerging hub worth watching.

Quality of life factor: Minneapolis consistently ranks high for work-life balance, with short commutes and a culture that values both professional achievement and personal well-being.

Best for: Healthcare professionals, finance workers, emerging tech roles, and anyone seeking a balanced lifestyle with strong career prospects.

5. Boston, Massachusetts

Strong graduate job concentration of 7% (highest among top 10 large cities) with 58% share of bachelor’s degree-holders among 18 to 34-year-olds. Boston’s education-driven economy creates premium opportunities for high-skill roles.

Education and innovation ecosystem: The concentration of universities, hospitals, and research institutions creates a unique ecosystem where new graduates can quickly access mentorship, networking, and career advancement opportunities.

Premium but worthwhile: Solid median income of roughly $82,200 for those with a bachelor’s degree, though higher living costs require careful budgeting. The city’s profile reflects a competitive, education-driven job market that rewards ambition and skill.

Best for: Healthcare professionals, biotech researchers, education professionals, financial services workers, and anyone seeking a intellectually stimulating environment with global connections.

6. Lincoln, Nebraska

Top-ranked mid-sized city thanks to government, education, and tech jobs, with cost of living well below national average. Lincoln represents the hidden gem category – cities that offer excellent value without the competition of major metros.

Government and education stability: State government positions provide job security, while the University of Nebraska creates ongoing opportunities in education and research. An expanding startup ecosystem adds entrepreneurial energy to the mix.

Financial freedom: Low cost of living means your starting salary goes significantly further, allowing you to build savings, pay down student loans, and enjoy a comfortable lifestyle from day one.

Best for: Government workers, education professionals, emerging tech roles, and anyone prioritizing financial stability and quality of life over big-city prestige.

7. Richmond, Virginia

Career growth potential is sky-high with Indeed Hiring Index of 126, showing job openings 26% higher than pre-pandemic levels. Richmond’s renaissance as a business hub creates significant opportunities for ambitious graduates.

Business-friendly environment: The combination of state government presence, growing corporate sector, and reasonable costs makes Richmond attractive to both employers and employees. Short commutes (23 minutes average) and low unemployment (3.3%) create a favorable job market.

Growth trajectory: The city’s hiring index suggests sustainable growth rather than a temporary bubble, making it a smart long-term bet for career development.

Best for: Business professionals, government workers, healthcare roles, and anyone seeking rapid career advancement in a growing market.

8. Kansas City, Missouri

More affordable option with expanding amenities, positioned as increasingly attractive for young professionals. Kansas City represents the affordable alternative to major metros without sacrificing opportunity.

Emerging tech scene: While not yet a major tech hub, Kansas City’s growing startup scene and corporate relocations create emerging opportunities. The city’s central location makes it attractive for logistics and distribution companies.

Quality of life wins: Expanding cultural amenities, reasonable commutes, and strong community feel make Kansas City appealing for graduates seeking work-life balance from the start of their careers.

Best for: Business professionals, logistics workers, emerging tech roles, and anyone prioritizing affordability and community feel.

9. St. Louis, Missouri

Strong job market for grads (25.1%) and rents consuming just 20.8% of income, providing both career potential and affordability. St. Louis offers one of the best value propositions in the country for new graduates.

Corporate headquarters advantage: Major companies like Anheuser-Busch, Enterprise Holdings, and Centene Corporation provide diverse opportunities across industries. The healthcare sector, anchored by BJC HealthCare and Mercy, creates ongoing opportunities for healthcare professionals.

Financial advantage: With rent consuming just over 20% of income, new graduates can focus on career development, skill building, and saving rather than struggling to make ends meet.

Best for: Healthcare professionals, business workers, manufacturing roles, and anyone seeking maximum financial leverage from their starting salary.

10. Houston, Texas

One of only four metros where recent college graduates spend less than 30% of income on rent (27.0%). Houston’s energy sector dominance creates unique opportunities for technical graduates while maintaining affordability.

Energy and beyond: While oil and gas remain central to Houston’s economy, the city’s diversification into healthcare, aerospace, and technology creates opportunities across multiple sectors. The Texas Medical Center is the world’s largest medical complex.

No state income tax advantage: Texas’s lack of state income tax effectively increases take-home pay, providing additional financial leverage for new graduates.

Best for: Engineering professionals, healthcare workers, energy sector roles, aerospace professionals, and anyone seeking diverse opportunities in a major metro without crushing housing costs.

The Salary Reality Check

Interview Guys Tip: Negotiate based on local market data, not national averages. A $65,000 salary in Kansas City provides more purchasing power than $85,000 in San Francisco.

Understanding the salary landscape is crucial for making informed decisions about where to launch your career. Engineering majors have the highest projected salary for the class of 2025 at $78,731, followed by computer science majors with a projected salary of $76,251.

Location dramatically impacts value: Starting salaries range dramatically – consulting services associates earn close to $90,000 in New York and California, but $60,000 in Kansas City. The key insight? That $60,000 in Kansas City often provides a better quality of life than $90,000 in New York after factoring in housing, taxes, and daily expenses.

Expectation vs. reality matters: Class of 2025 expects to earn an average $101,500 per year for their first job, but reality shows average recent grad makes $68,400. This disconnect can lead to disappointment and poor negotiating strategies.

Growth potential varies by region: Some markets offer higher starting salaries but limited growth, while others provide modest starting pay with rapid advancement opportunities. For instance, Atlanta’s 8.2% annual income growth rate means your earning potential accelerates quickly.

Before you write off a city based on starting salary alone, research the complete compensation picture. Consider signing bonuses, benefits packages, cost of living adjustments, and most importantly, the trajectory for salary growth in your chosen field.

Making It Work: Practical Strategies for Success

Interview Guys Tip: Apply the “2.6 connections rule” – your next job is exactly 2.6 LinkedIn connections away. Focus on building relationships in your target city before moving.

Success in any of these cities requires more than just showing up with a degree. Here are the practical strategies that separate thriving graduates from struggling ones:

Master the roommate math: Cincinnati offers the best value where typical recent college grads spend only 16.9% of income on a median-priced two-bedroom with a roommate. This strategy works in all these cities – shared housing can transform an unaffordable market into a manageable one.

Leverage remote work strategically: Use remote positions to build experience while living in affordable markets. Many companies now offer hybrid arrangements that let you access high-paying coastal jobs while enjoying Midwest cost of living.

Network before you move: Connect with local professionals, alumni networks, and industry groups before relocating. The job search becomes exponentially easier when you have warm connections rather than cold applications.

Consider the mid-sized advantage: Cities like Lincoln, Nebraska and Richmond, Virginia often provide better value than major metros. You’ll face less competition, build relationships faster, and often advance more quickly than in oversaturated markets.

Update your resume for the current market: Given the competitive landscape, make sure your resume is optimized for 2025 hiring practices. Check out our guide on how to update your resume for 2025 for specific strategies that work in today’s market.

Think AI-proof career paths: With concerns about automation affecting entry-level roles, focus on positions that require human creativity, emotional intelligence, and complex problem-solving. Our analysis of the top 25 jobs that won’t get eliminated by AI can help guide your career choices.

Use data to your advantage: Before salary negotiations, research specific market data for your target city. Tools like the Bureau of Labor Statistics Occupational Outlook Handbook provide detailed salary ranges by location and occupation.

Beyond the Numbers: What Makes These Cities Win

The cities on our list share common characteristics that make them graduate-friendly: economic diversification reduces dependence on single industries, lower overhead costs allow businesses to invest in talent, and strategic geographic positioning provides access to larger markets.

Economic diversification matters: Cities like Atlanta and Austin succeed because they don’t rely on a single industry. When tech slows down, healthcare and logistics continue growing. When energy prices fluctuate, manufacturing and education provide stability.

Business-friendly policies: Many of these cities offer incentives for companies to relocate or expand, creating a steady stream of new opportunities. Texas’s lack of state income tax, for instance, makes both employers and employees more willing to consider Houston or Austin.

Quality of life investment: Cities that invest in infrastructure, cultural amenities, and livability tend to attract both businesses and young professionals. Minneapolis’s bike paths and Lincoln’s walkable downtown aren’t just nice perks – they’re economic development strategies.

Conclusion

Bottom Line Up Front: While the Class of 2025 faces legitimate hiring challenges, strategic location choices can dramatically improve your odds. Cities like Atlanta, Austin, and Minneapolis are actively hiring while offering livable wages and reasonable costs.

The data reveals a clear pattern: opportunity exists for new graduates who know where to look and are willing to think beyond traditional coastal markets. The most successful graduates in 2025 will be those who make data-driven decisions about location, build networks strategically, and focus on markets with genuine growth potential.

Your next steps are clear: Research salary ranges for your target cities using authoritative sources like the Federal Reserve Bank of New York’s college graduate labor market data, connect with local networks before moving, and don’t overlook mid-sized markets that offer better value than coastal hubs.

Remember, your first job location isn’t permanent, but it can set the trajectory for your entire career. Choose wisely, and you’ll find that 2025 can be the year you launch successfully, regardless of what the headlines say about the job market.

The data is clear – opportunity exists for new graduates who know where to look and are willing to think strategically about geography, networking, and career positioning.

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