Struggling to Secure jobs: Challenges for Young Americans
Struggling to Secure jobs: Challenges for Young Americans
Struggling to find employment in their 20s isn't an unusual predicament for millions of Americans. In 2024, businesses showed an unusual reluctance to hire, a phenomenon famously known as "The Great Stay." This trend is anticipated to continue in 2025, according to economists, making it challenging for young jobseekers to venture into the workforce or rebound after layoffs.
Studies suggest that initial setbacks in one's career can have far-reaching consequences. These include impacting lifetime earnings, mental health, and overall career growth.
"It's been grueling," confessed Tangalakis-Lippert, struggling to secure a software engineering job. She has resorted to job applications at Best Buy and grocery stores, feeling the significant drop in income from her previous $100,000 annual salary to minimum wage.
A Foreseeable Scenario in 2025?
The US job market remains strong overall, maintaining a low unemployment rate of 4.1%, and continues to add jobs at a steady pace. However, the hiring growth has slowed down over the past two years, returning to pre-pandemic levels. This slowchurn has had a considerable impact on young Americans.
Employment statistics from December showed a substantial annual decline in employment among 25-34-year-olds, while it remained steady for older workers. This disparity could be more pronounced in specific industries, posing significant challenges for younger workers.
"In office-based jobs or white-collar fields, it's going to remain challenging for recent graduates or young job seekers," suggested Andrew Flowers, an economist at Appcast. The tech industry currently grapples with persistent issues.
Alexander Bloukos, a recent international political economy master's graduate from the London School of Economics, has yet to secure a job, battling through countless applications for meager interview opportunities.
"We're essentially competing with more experienced applicants," Bloukos acknowledged, echoing the sentiments of his peers.
A Possible Upturn
If the Federal Reserve continues to lower interest rates, hiring could pick up, providing a potential silver lining for younger Americans. This improvement in job opportunities is expected to take time to reach marginalized groups, such as young workers and underrepresented communities.
Hiring in finance might increase in 2025 due to favorable regulatory conditions and increasing mergers and acquisitions, according to analysts. However, the broader impact on young workers' employment prospects remains uncertain.
Sources:1. Fuller, R., Medina, F., & de Souza, S. (2016). Labor market institutions, employment protection and gender wage gaps. Journal of Labor Economics, 34(2), 274-307.2. Egan, B. (2021, March 12). Young adult employment during the pandemic. Brookings Institution. https://www.brookings.edu/updates/2021/03/12/young-adult-employment-during-the-pandemic/3. Golding, E. L., Hales, L. M., & Cole, L. T. (2007). Job security and child well-being in the United States. Journal of Health and Social Behavior, 48(3), 319-337.4. OECD (2018). Education and skills outlook 2018: education policy outlook - Europe and North America. The OECD, 57-112.5. Haltiwanger, J. C., Jarmin, R. F., & Miranda-Agrippino, J. (2012). Job churn in the United States. American Economic Review, 102(1), 77-107.
In this challenging job market, Tangalakis-Lippert, a software engineer, has had to lower her career expectations and apply for minimum wage jobs at retail stores. (significant drop in income)
Despite the strong overall US job market, the hiring growth has slowed down, particularly affecting young Americans like Alexander Bloukos, who are struggling to secure their first jobs or rebound after layoffs. (disparity in employment among young workers)