Young job seekers are finding it more difficult than ever before to secure employment despite an expansive labor market: 'It was brutal"

Larock, 25, from Wilmington, Delaware who now resides in New York City says her experience “was pretty brutal”. It felt like hard work was for little response or reward. “After struggling through a year of disappointment and contract work to support her living expenses, Larock eventually secured full-time employment at Acumen – an impact investment firm in New York.” Jacqueline Novogratz, sister of prominent investor Michael Novogratz and head of cryptocurrency-focused Galaxy Investment Partners. Julianna LaRock credits Julianna LaRock with founding this firm; however, while Larock finds satisfaction with her current status and future opportunities are unknown to her. “Depression and anxiety that was stemming from job searching would often come bursting out into other social relationships,” according to University of Delaware and Fordham graduates, which only provided minimal support compared to what was needed; everyday felt similar; monotony is something they loath greatly. “Larock’s experience comes at a time when, on the surface at least, the jobs market appears to have improved substantially. For example, since January 2023 nonfarm payrolls have expanded by approximately four million positions — continuing growth that began after Covid crisis hit.” Since January 2022, unemployment rates have held below 4% every month – an unprecedented run that dates back to the 1960s. But worries have surfaced that labor markets may now begin to show cracks. Larock’s cohort of workers — in their late teens to early 20s, including newly graduated college students as well as first-time workers entering the labor force — appears particularly vulnerable. According to Bureau of Labor Statistics estimates, hiring rates have dropped just short of post-Covid era lows of 3.6% of labor force participation rate. Prior to the pandemic, hiring rates had dropped below their current levels only once: August 2014. Things appear worse for younger workers. “People would often tell me the job quality or job search statistics weren’t that bad, using that argument against me,” Larock laments. Whether they intended it that way or not – which I don’t believe they did – their words had that result. Welcome to a labor market full of both positive and negative experiences for individuals; where the collective experience may be positive while not always translating as positively for specific groups. Goldman Sachs economist Elsie Peng recently observed: ‘The good news,” noted Goldman Sachs economist Elsie Peng in a note issued after the pandemic outbreak began, is that job-finding rates continue to exceed pre-pandemic levels for groups that tend to be vulnerable during weaker economic periods – such as workers without college degrees, low skill industries workers or foreign-born individuals.” “But the bad news is that newcomers to the labor market are faring less well,” Peng stated. According to Goldman data, monthly rates of employment among workers with no prior work experience has declined from 20% down to 13% since their prior peak of 20%. Though she characterized the job market as strong overall, Peng noted that there were soft spots which particularly affect those new to employment. While unemployment in the 20- to 24-age group currently stands at 3.5%, which is slightly higher than it was pre-pandemic and should serve as one indicator of labor market softening. Recently graduated Penn State student Molly Huang faces challenges when trying to navigate her situation after she has graduated; something which began during her studies but has intensified now she’s no longer studying full time at Penn. “To be perfectly honest, the job market in Horsham, Pennsylvania, is not great. Most of my friends agree that finding full-time work as a recent graduate can be challenging,” according to Horsham resident Jessica. She adds, “I get interviews here and there but nothing has come through yet as offers.” Huang acknowledges the increased difficulty posed by her field-specific major and is taking an adaptable approach in approaching this search process. “I’m trying to remain optimistic as many of the jobs people I know with don’t start until August, giving me some breathing room,” she stated. However, time does seem like its passing fast. Huang and other recent graduates in Huang’s position face an age-old difficulty: employers want employees with experience working in their field – something new grads often find difficult to obtain outside internships. There may be good news on that front; according to Vanguard’s proprietary data gathered through enrollments into their 401(k) plans, new hires as a share of existing employees increased to 2.8% last month – its highest rate since October 2022. “Recent months, however, have seen a modest uptick in hiring for younger workers while hiring rates have flattened for older ones,” according to Vanguard investment analyst David Pakula. However, Indeed reported in April that only 33% of postings listed specific years’ experience; down from nearly 40% just two years prior. Bily commented, “While labor markets remain fairly tight in general, I believe we are seeing signs of weakening overall,” including in 2022 and since. Recent college grads are looking for their foothold into the workforce and beginning their careers, often taking jobs in leisure and hospitality sectors because that is where opportunities lie. Ethan Mariano plans to pursue both political science and international affairs at Gettysburg College before transitioning into graduate studies at American University in Washington D.C. this coming September. He needs a job while studying to cover living expenses; ideally he would like to find something which might serve as a stepping stone into foreign policy analysis at either State Department or think tanks – however so far no luck! “Many entry level jobs require two years experience. To secure one on Capitol Hill is difficult since those able to afford living there usually get internships,” according to Mariano of Hazleton Pennsylvania. “It has been difficult,” Mariano notes of his experience so far, yet remains positive, knowing a postgraduate degree likely will be required before making his mark on society. Still optimistic despite these obstacles, Mariano remains positive while remaining aware that getting one may help establish his professional goals more firmly: “Yeah I’m optimistic; perhaps my young naivete, but I think there will be something out there,” Mariano claims. “Just need my foot in the door. “Don’t miss these exclusives from CNBC PRO! Don’t miss these exclusives from CNBC PRO! Don’t miss these exclusives from CNBC PRO! Don’t miss these exclusives from CNBC PRO! Don’t miss these exclusives from CNBC PRO! Don’t miss these exclusives from CNBC PRO! Don’t miss these exclusives from CNBC PRO! Don’t miss these exclusives from CNBC PRO! 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