Job Market Challenges for Graduates: Career Coach Explains Why It’s So Tough Right Now

The U.S. job market remains difficult, particularly for recent college graduates, according to economists and career experts. Despite a low national unemployment rate of 4.2% in May, hiring rates have dropped to their lowest in over a decade, creating a tough landscape for those entering the workforce.

Mandi Woodruff-Santos, a career coach and personal finance expert, described the current job market as “trash,” noting that the situation is difficult even for those with many years of experience, making it especially hard for recent graduates.

Although the unemployment rate is relatively low, the rate of hiring has been sluggish. April saw the lowest rate of employer hiring in more than ten years, signaling that businesses are being cautious. At the same time, workers are quitting less frequently, with the “Great Resignation” of 2021 and 2022 now replaced by the “Great Stay” as workers hesitate to leave their positions.

Heather Long, chief economist at Navy Federal Credit Union, warned that it would be a tough summer for those seeking full-time employment, especially graduates. She explained that businesses are now only hiring for critical positions, with many job seekers, particularly those fresh out of college, struggling to find work.

Despite these challenges, Long believes that a recession is not immediately on the horizon. Companies have still been adding jobs, but the pace of growth has slowed significantly, signaling a more cautious approach to hiring in an uncertain economy.

Cory Stahle, an economist at the Indeed Hiring Lab, emphasized that the current slow growth in the job market can’t continue indefinitely. He warned that as hiring remains low and growth stagnates, employers will eventually have to let go of some existing workers, potentially increasing unemployment while job opportunities continue to shrink.

Woodruff-Santos encouraged job seekers not to underestimate the value of networking and building personal connections. Her advice is to step out of your comfort zone and meet new people, even if it means needing a helping hand. She suggested that job seekers should continue to build their skills, pursue certifications, or take contract work in their desired field while navigating the tough job market.

While the job market is challenging, Woodruff-Santos reassured graduates that they will get through it. “It’s tough now, but you’ll be OK,” she said, drawing from the fact that difficult job markets have occurred before and will happen again.