What factors have made the current job market an unfavorable match for college graduates and recent graduates?

• Labor analysts cite a bifurcation in the current labor market.
• While the demand for jobs that don't require a college degree is increasing, recent graduates are still focused on applying for highly competitive positions with a large number of applicants, rather than pursuing high-demand roles.
• Technical skills are essential at large corporations such as Verizon, but collaboration and teamwork abilities are equally important and can greatly impact a successful job interview.

Jenny Flora Wells, who graduated from Ohio State University with a master's degree in social work in 2021, applied for 400 jobs and secured three interviews.

"I was under the impression that an MSW was a guaranteed ticket to employment, but despite following all the rules, I couldn't secure a job," said Wells.

In Los Angeles, a licensed social worker named Wells assists recent graduates struggling with job search-related trauma. During her job search, she obtained an internship in OSU's career services department, where she developed a specialty in counseling job seekers.

According to Wells, the younger generations are working harder than ever, but they have nothing to show for it because no one is giving them jobs.

Labor analysts and academics confirm what Wells experienced personally and now sees professionally: grads confounded and mentally exhausted by the unforgiving job market.

A new bifurcation in strong labor market

According to Rachel Sederberg, senior economist and research manager at labor analytics firm Lightcast, the current labor market is experiencing a bifurcation, with roles that need filling heavily favoring those with less than a bachelor's degree.

Sederberg, an adjunct economics professor at Stonehill College, stated that she sees student frustration first-hand and that this is supported by both student testimonies and labor market data.

Despite a slight increase in job postings for bachelor's degree holders with two years or less of experience from Jan-May '23 to Jan-May '24, there were 148,500 fewer job postings in that period for '24 than in '23.

While the number of job openings that don't require a degree has increased slightly from last year, with 65.98% of postings in 2024 compared to 65.75% in 2023, Lightcast's data shows that 8 out of the top 10 job postings in March were for positions that didn't require a college degree.

Sederberg states that there is a shortage of workers for jobs that don't require a degree, and they are having a great experience trying to find jobs. Additionally, he notes that there is strong demand in the trades, retail, hospitality, and leisure.

Sederberg stated that the shortage of workers in major trades is partly due to the aging of the baby boomer generation, who are retiring from the workforce. With many openings left, there is a need to backfill these positions. For instance, we cannot go without plumbers.

Not a degree job crash, an applicant mismatch

Sederberg suggests that the job market for graduates is returning to a more realistic level, but not experiencing a complete crash.

The labor market is not weak, as we have become accustomed to its incredible strength and chaos over the past two years, with many companies hiring juniors in college even before they completed their degree, Sederberg stated.

The job market for degree holders is highly competitive, with a significant divide between those who possess degrees and those who do not. Additionally, there is a gap in the skills market for degree holders, with some jobs attracting numerous applicants while others remain vacant, making the competition for desirable jobs even more intense for recent graduates.

Cindy Meis, director of undergraduate career services at the Tippie College of Business at the University of Iowa, has observed a fragmented and uneven job market. Despite a record number of job postings on platforms her office uses to help grads connect with prospective employers, such as Handshake, the numbers don't tell the whole story.

Meis stated that the job market does not always match the aspirations of job seekers, resulting in a mismatch between the available positions and the skills of the candidates.

While some job postings receive a flood of applications, others receive none.

Marketing jobs have plenty of applicants, but accounting degrees are in high demand, Meis said. She explained that recent graduates have different work experiences than their older counterparts. New graduates want to return to the office, while older workers are more open to maintaining pandemic-era home office work.

Don't over rely on college as difference maker

Christina Schelling, Verizon's Chief Talent and Diversity Officer, stated that employers recognize the value of nontraditional pathways to the workforce in equipping individuals with the necessary skills and experiences for various jobs.

According to Schelling, the job market for graduates in 2024 is strong, but focusing solely on obtaining a degree is a mistake. In fact, approximately 99% of Verizon's over 100,000 jobs do not require a college degree. Schelling emphasized that soft skills, such as collaboration, critical thinking, and empathy, are increasingly important in today's job market.

"According to Schelling, teaching technical skills is easier than teaching resilience and creative problem-solving. Therefore, in interviews, candidates should emphasize their desire for continuous learning and intellectual curiosity. Companies, particularly large ones, are increasingly investing in their employees and prioritizing skill development."

Experts predict that the challenging job market for graduates is being exacerbated by burdensome application requirements.

According to Justin Marcus, co-founder and CEO of Big 4 Talent, the hiring process is flawed.

Marcus claims that new graduates lack the patience and time to meticulously go through the additional steps required to work with applicant tracking systems that necessitate uploading a resume and manually answering questions. Additionally, Marcus states that both employers and graduates have become more selective. Companies now demand experience for even entry-level positions.

Marcus stated that the need for qualifications in "white collar" jobs is increasing due to a high number of applicants.

A grad's job market prospects will differ based on their location, job application, and desired career path. A single unemployment rate cannot accurately represent the current job market situation.

Marcus stated that unemployment trends are highly specific to sectors, regions, and employment levels.

Many of her clients experience mental health struggles despite having obtained their degrees, according to Wells.

"In 2024, the job market is drastically changing, and while many believe that going to college, getting a master's degree, and specializing in a niche will lead to success and a comfortable life, the reality is much more complex."