Though the labor market is slowly improving, the Great Recession that began in December 2007 was so long and severe that the crater it left in the labor market continues to be devastating for workers of all ages. Unemployment has been above eight percent for more than three years, and 12.7 million workers remain unemployed today. The weak labor market has been, and continues to be, particularly tough on young workers: At 16.4 percent, the March unemployment rate for workers under age 25 was twice as high as the national average. Though the labor market is now headed in the right direction, the prospects for young high school and college graduates remain grim. This briefing paper examines the labor market that confronts young graduates who are not enrolled in additional schooling--specifically, high school graduates age 17-20 and college graduates age 21-24--and details the following findings: (1) Unemployment and underemployment rates of young graduates have only modestly improved since their peak in 2010; (2) There is no evidence that young high school graduates have been able to "shelter in school" from the labor market effects of the Great Recession; (3) The long-run wage trends for young graduates are bleak, with wages substantially lower today than they were in 2000; (4) Young graduates lack opportunities for advancement, a trend underscored by the fact that there are now nearly 30 percent fewer voluntary quits each month than there were each month in 2007; (5) Graduating in a bad economy has long-lasting economic consequences; (6) The safety net of federal and state assistance programs often does not cover young workers due to eligibility requirements such as significant prior work experience; (7) The cost of higher education has grown far more rapidly than median family income, leaving students with little choice but to take out loans, which, upon graduating into a labor market with limited job opportunities, they may not have the funds to repay; and (8) The scarcity of job opportunities for the Class of 2012 is a symptom of weak demand for workers in the overall economy. The following tables are appended: (1) State unemployment rates, by age; (2) State underemployment rates, by age; and (3) College/university enrollment rates for high school graduates under age 25, by state. [For the previous edition, "The Class of 2011: Young Workers Face a Dire Labor Market without a Safety Net. EPI Briefing Paper #306," see ED537324.]