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Azraiel Raines dreamed of working for the State Department, when she graduated from Idaho State University with a degree in global studies.

But the State Department is not hiring. In fact it cut more than 1,300 jobs this past week as part of a broader government downsizing.

"My very first avenue was poof, gone," Raines says.

As graduation approached, she interviewed at law firms, but never got a call back. Applications for school district jobs also came up empty.

"I was panicking," Raines says. "What am I going to do if I don't have a job after graduation?"

Eventually, she landed a position in the counseling department at her alma mater in Pocatello, Idaho, where she oversees community outreach.

"Which is not something I envisioned myself doing," Raines says. "But it's using my skills in ways I didn't think I'd be able to, and the people there have been really great, so it's helped a lot."

Economists say Raines is not alone among recent college graduates in struggling to find work. Although the overall unemployment rate is just 4.1%, few people are quitting jobs today, and employers are skittish about hiring.