Current Challenges in Job Procurement for Young Americans are Significant. attributed to 'The Great Stay-at-Home' Period.
Despite her efforts, Staple's predicament underscores the challenging situation confronting young Americans aiming to launch their careers, even as the broader U.S. economy continues to flourish.
The unemployment rate remains remarkably low, businesses continue to recruit at a fast pace, and there are currently more job openings than ever before in the nation's history, as indicated by government statistics that analysts and policymakers meticulously scrutinize to comprehend the labor market.
However, other data indicates a more challenging landscape for young job seekers. The percentage of working-age individuals aged 20-24, in comparison to other age groups, decreased most significantly in September when compared to the preceding year, according to Labor Department data. Additionally, in the third quarter of this year, the number of those between 18 and 24 who admitted to taking more than a year to secure employment tripled compared to the end of 2022, as indicated by ZipRecruiter survey data shared with CNN.
According to economists, these early-career setbacks might result in reduced lifetime earnings and missed opportunities for learning in the initial stages of a career.
"This all makes me feel like I'm falling behind," Staple shared her thoughts. "The money I earn mostly comes from my parents or from gifts like my birthday or Christmas. That's still quite limited."
'The Great Stay'
In 2022, job openings reached an all-time high, and workers were so confident in their ability to secure new employment that they left their positions at an unprecedented tempo – an effect of the U.S. economy swiftly recovering from the pandemic.
Two years and an aggressive interest-rate hike campaign from the Federal Reserve later, the U.S. economy now bears a resemblance to a pre-pandemic norm. Fortunately, the U.S. economy has so far managed to avoid a recession, albeit such an event remained a significant concern while the Fed sought to bring down inflation.
Indeed, the overall labor market is doing well. Yet, a closer examination reveals factors that hinder younger individuals from gaining a foothold in the industry.
"The headline figures from the jobs report still look quite impressive, but the actual labor market activity – hiring, job switching, and turnover rates – are much slower than the top-line statistics suggest," noted Julia Pollak, ZipRecruiter's chief economist. "We're currently experiencing 'The Great Stay,' where companies are being excessively cautious when hiring, firing, and job switching is also remarkably slow."
The rate at which individuals were hired for a job fell to its lowest level since October 2013 – excluding the initial disruption at the start of the pandemic – in August, matching the figures recorded in June. Meanwhile, the rate at which workers voluntarily left their employment decreased in August to figures not seen since 2015 – other than the significant drop witnessed in early 2020 due to the pandemic.
Employers have adopted a wait-and-see approach regarding their hiring plans in the wake of uncertainty surrounding the outcome of the upcoming U.S. presidential election and anticipation for lower interest rates, according to previous CNN reporting.
A 'victim of circumstances'
As everyday Americans, we are subject to the whims of the economy, whether coping with difficulties such as escalating inflation and potential recessions or benefiting from a booming job market. Struggling to secure employment – at least partially due to broader economic forces – can leave lasting impressions.
"Young workers, during their first few years after graduation, go through critical stages in their careers. It is during this time that they create their networks, meet other professionals, and develop their abilities," emphasized Daniel Zhao, an economist at Glassdoor. "Experiencing obstacles early in one's career can have lasting repercussions."
Zhao brought up Millennials who graduated from college during the Great Recession and suffered from lower earnings as a result of being 'scarred' by the experience, leading them to prioritize employment stability over job switching.
"Job security became highly important for that generation, which unfortunately led many to stay in jobs that were not an ideal fit or offered inadequate compensation, simply because they were risk-averse and preferred to remain in a suboptimal situation," Zhao explained.
Jonathon Courtney, 23, earned a master's degree in applied economics from the University of Houston in August but has yet to secure a full-time, permanent position related to his studies, despite applying to numerous positions. Courtney claimed to have secured just five interviews from his efforts.
Courtney sometimes questioned the value of his education but eventually realized that the situation was beyond his control.
"I do not believe that my education was a wasted investment. I recognize the skills I've acquired and foresaw ways to apply them in real-world scenarios," Courtney shared his sentiments with CNN. "However, I sometimes feel like a victim of circumstance in this job market."
Even for young Americans who have already embarked on their careers, layoffs remain a possibility.
Catherine Dugoni, 26, was laid off from her public relations job a year ago and has yet to find employment since, despite applying to numerous positions and participating in approximately 60 interviews. She had to return home to live with her parents in Sacramento, California, due to being unable to afford housing in San Francisco.
"If I'm completely honest, it's been really tough on my mental well-being," Dugoni admitted. "There have been moments of sheer frustration, especially when it feels like you're tossing out job applications into the abyss, and even when you're hustling with networking, that doesn't guarantee you'll score an interview."
Despite the overall economic growth and high job openings, some businesses might prioritize experienced candidates over entry-level positions, making it challenging for young individuals to break into the job market. Staple, for instance, relies heavily on her parents' financial support during this time.
Furthermore, the current economic landscape shows a 'Great Stay' phenomenon, where companies are being cautious in hiring and job switching is slow. This situation can make it difficult for young job seekers like Jonathon Courtney and Catherine Dugoni to secure full-time positions related to their education and prior experience.
