Why Young Americans Are Struggling to Land Jobs: Blame ‘The Great Stay’

Washington CNN — 

Meet Kirsten Staple, a determined young graduate who has thrown her hat in the ring over 500 times in search of a job. Fresh out of the University of Texas at San Antonio with her psychology degree in 2022, she initially targeted roles that matched her education and dreams.

However, the dream job eluded her grasp, leading her to broaden her search to any full-time position, even grocery store jobs—all while living under her parents’ roof in El Paso, Texas. But the job market remains an unyielding wall, and she still hasn’t secured a position.

Kirsten’s journey is a stark reminder of the uphill battle facing young Americans eager to launch their careers, despite the broader U.S. economy showing signs of strength.

With unemployment figures holding steady at historic lows and employers still hiring at a vigorous pace, one would expect a smooth transition into the workforce. Yet, the reality tells a different story.

The numbers paint a tougher picture for younger job seekers: the percentage of employed Americans aged 20-24 has seen the sharpest decline of any age group this past September. According to Labor Department data, this decline was followed closely by those aged 25-34. Notably, a recent survey revealed that the number of job seekers aged 18-24 who took over a year to find a job tripled in the third quarter compared to late 2022.

Economists warn that early career setbacks could have lasting implications on lifetime earnings, not to mention the valuable experiences missed during these formative years.

“This all makes me feel behind,” Kirsten expressed, revealing the weight of financial dependency. “Any money that I receive comes from my parents, or if I get money for my birthday or for Christmas. That’s still very, very limited.”

Back in 2022, record-breaking job openings fueled a wave of confidence as workers felt empowered to chase new opportunities. But fast forward two years, and the landscape has shifted significantly. The U.S. economy has shown resilience, sidestepping recession threats even amidst the Federal Reserve’s aggressive measures to combat inflation.

Overall, the job market still appears stable. However, a closer inspection reveals barriers that are keeping the younger generation from entering the workforce successfully.

“While the headline figures look promising, the reality is that the job market is much more stagnant than those numbers suggest,” noted an expert in the field. “We’re witnessing ‘the Great Stay,’ where hiring and job transitions are happening at an unusually slow pace.”

In fact, hiring rates have plummeted to levels not seen since 2013, except for the initial pandemic disruption. The trend of workers leaving their jobs has dipped to its lowest since 2015, excluding the unprecedented drop at the pandemic’s onset.

Uncertainty surrounding the upcoming U.S. presidential election has caused employers to hit the brakes on hiring, further complicating matters for job seekers.

Everyday Americans often find themselves navigating the unpredictable waves of the economy. Whether it’s battling high inflation or riding the highs of a booming job market, the struggle to land that first job can lead to consequences that last a lifetime.

“For young workers, those first few years out of school are crucial. It’s when they’re building their networks and honing their skills,” explained an economist. “Experiencing setbacks during this time can leave a lasting mark.”

The scars of the Great Recession still linger for Millennials, whose initial struggles continue to impact their career choices, leading to lower earnings and risk-averse mindsets.

“Job security became paramount for that generation, which often means staying in roles that may not fit well or pay fairly, simply because they’re reluctant to take risks,” the economist added.

Jonathon Courtney, a recent graduate from the University of Houston, has also faced the music. With a master’s degree in applied economics, he has cast his net wide, applying to around 200 jobs over the past year. Yet, he has only managed to snag five interviews.

At just 23, Jonathon sometimes questions the value of his graduate degree but has ultimately realized that many factors are outside his control.

“I don’t regret my education; it was worth it in the knowledge I gained. I see many applications for my skills in the real world,” he stated, but acknowledges feeling like a “victim of circumstance” as he navigates this job market.

The struggles don’t end with recent graduates. For young professionals already on their career paths, layoffs loom large.

Take Catherine Dugoni, 26, for instance. After being laid off from her public relations job a year ago, she has been unable to land another position, having applied to hundreds of jobs and gone through about 60 interviews. She even had to move back in with her parents in Sacramento, California because her San Francisco rent became unsustainable.

“This has taken a serious toll on my mental health,” Catherine admitted. “It feels incredibly defeating at times, especially when it feels like you’re just casting applications into a void. Even networking doesn’t guarantee an interview.”