The frozen job market is dire for entry-level workers
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Job postings are down from last year, per the latest data from jobs site Indeed.com.
Why it matters: That's not great news for folks looking to switch jobs, but for new graduates trying to break into the labor market — it's a dire moment.
How it works: The number of job listings overall on Indeed.com dropped 7% in August from a year ago — the same as the number of job postings for entry-level workers.
- Even though the numbers are the same — they hit different depending on where you are in your career.
- If you're someone who already has a job, then you'll be "hugging" tighter to your current role, faced with fewer options.
- New grads have no current role. "Getting into the labor market is incredibly difficult," says Allison Shrivastava, an economist at Indeed Hiring Lab.
Between the lines: The prevailing wisdom is that the job market for college graduates is uniquely bad, and there are fewer opportunities for younger workers — but that's not quite right, Shrivastava says.
- The entire job market is actually pretty bad. While unemployment is still relatively low by historic standards, there are few job openings and hiring is weak.
- Across almost every sector that Indeed tracks, job postings are down from last year. The only exceptions? Listings for physicians and surgeons are up 3.2%, and listings in banking and finance (up 4.7%)
- This frozen situation matters more to those without employment. It's why you're seeing higher unemployment rates for recent college graduates versus overall.
Reality check: Job listings are still up very slightly from pre-pandemic levels.
Stunning stat: Listings for jobs in scientific research and development on Indeed are down nearly 25% from last year, the most in any category, likely a result of the pullback in federal spending and federal layoffs.
The intrigue: Some industries are actually worse for recent graduates than they are for senior positions.
- In tech, where AI adoption is taking off and seen as a replacement for entry-level coding jobs, senior roles make up a bigger share of job listings overall.
- It's the flip side of an industry like retail, where there are loads of jobs at the bottom and few at the top.
The bottom line: The job market is a lot like the real estate market right now. If you are lucky enough to have house or a job, you're doing OK.
- Everyone else is facing big barriers to entry.
