Recent reports from several labor market analysis firms indicate that hiring this year has fallen to historic lows, the sector has become tight, and job openings are increasingly scarce for young people seeking to enter the workforce after college.

According to an analysis by Oxford Economics, the hiring rate In the United States, it has fallen by a little over 3% since 2022, and Generation Z is being most affected.

According to Elise Gould, senior economist at the Economic Policy Institute, “in a way, they are missing the opportunity to enter the labor market. It’s not a new phenomenon, but it is worrying,” she said.

The job search process is “discouraging”

Many of these young people eager to enter the labor market are prepared to do so, but the search process has become truly discouraging, leading them to look for any job, even if it is not in their field of study or profession.

In this regard, Gorick Ng, a career advisor at Harvard and professor at the University of California, Berkeley, commented that “if the supply of entry-level opportunities continues to dwindle, it will become increasingly difficult for this generation to showcase certain brands, positions, and bullet points on their resumes, which will only make it harder to land the next job.” employment,” he noted.

Gorick Ng explained that this trend could jeopardize the appropriate professional experience of Generation Z, who should be staying up-to-date in their sector to improve their skills and abilities.

Labor market conditions affect younger people

However, the Oxford Economics study highlights that young people have never had it easy when it comes to finding employment, especially when a country's economic and labor market conditions are not conducive to it.

“At the moment, both employers and workers are in a sort of holding pattern,“Without wanting to make sudden changes due to the uncertainty,” Gould stated. Economic conditions are leading companies to reduce their workforce and be more rigorous with their hiring processes. Cory Stahle, senior economist at Indeed Hiring Lab, explained that currently, “it has become increasingly difficult for almost anyone to get a job, especially for younger workers. The decrease in opportunities also means that entry-level workers are more likely to compete with an increasing number of mid-level and upper-level workers in the process,” he said. But the challenges are not only economic; technology has also played a crucial role. Many companies are reducing jobs through automation with AI services, seeking to save time, improve quality, and save money. “Artificial intelligence and technological tools have made applying for internships easier. But every time something gets easier, the bar is raised even higher, and applying for jobs is no exception,” Ng commented.