A new Fortune report highlights a growing challenge for recent college graduates entering today’s workforce. According to data from Kickresume, 58% of students who graduated within the past year are still searching for their first full-time job — a figure more than double that of previous generations.

In contrast, only about 25% of millennials, Gen Xers, and baby boomers faced similar struggles after graduation. Experts attribute this surge in post-graduate unemployment to a hyper-competitive job market reshaped by artificial intelligence.

AI-driven tools such as chatbots and automated systems are now performing many of the entry-level tasks once handled by junior employees. As a result, companies are hiring fewer new graduates, particularly in the tech sector.

According to SignalFire data cited in Fortune, hiring for new graduates at the 15 largest tech companies has dropped more than 50% since 2019, while U.S. entry-level job postings overall have fallen by about 35% since early 2023.

Gen Z graduates, who currently make up just 5% of the U.S. workforce, are having a measurable impact on national unemployment figures due to their high joblessness rate. Those holding master’s degrees are applying to as many as 60 jobs per month, compared to 38 for bachelor’s degree holders, as they navigate an increasingly limited market.

Before the pandemic, new graduates made up 15% of Big Tech hires — now that number is closer to 7%. Today’s unemployment rate among recent grads stands at 4.8%, higher than the national average of 4%, according to Fortune citing U.S. Census Bureau data.

While tech leaders like Bill Gates have pointed out that AI can empower young professionals, the shift has also made job stability more elusive. Lewis Maleh, CEO of staffing agency Bentley Lewis, told Fortune that while universities aim to prepare students for success, many graduates are finding that the traditional promise of employability no longer holds true.