Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
More stories for you
Recent college graduates are confronting an increasingly competitive and cooling labor market, where hiring rates in white-collar roles requiring a bachelor’s degree have diminished to rates below those recorded in 2019.
These new entrants into the workforce face fiercer competition for entry-level positions as fewer promotions and longer job tenures among current employees are reducing available opportunities. In the past, hiring rates for jobs demanding a bachelor’s degree were higher, but recent trends reveal a steep decline.
“For both workers age 20 to 29 and the total labor market, hiring rates for jobs that typically require a bachelor’s degree have shown the steepest annual declines since mid-2022,” according to an analysis published by ADP.
The Wall Street Journal reports that large companies have reversed their fast-paced hiring practices in the past couple of years. Many major tech employers have laid off thousands of workers, and companies like Citi and Google have issued job cuts to reduce middle management.
The downsizing experienced particularly in tech and financial services over the past two years has also contributed to employers being more selective in their recruiting processes.
ADP’s analysis, which represents data for more than 16 million people at over 31,000 U.S. employers from Jan. 2019 to May 2024, found that this is also the case for younger workers aged 20-29 that are looking for jobs requiring only a high school diploma or a GED.
“Younger workers’ hiring rates decreased less than the total labor market during 2020, which is why younger workers experienced more moderate hiring rate recovery in 2021,” according to ADP. “Yet younger workers have seen larger hiring rate reductions since 2022, especially for jobs that require only high school or GED.”
Given the competitive landscape for roles requiring a degree, industry experts are stressing the importance of professional networking and skill-building for young professionals. Some are advising job seekers to step away from their computers and participate in events where they can connect with professionals who might refer them to job opportunities.
Others suggest showcasing professional skills with online portfolios — including work from college, internships, and other relevant experiences.
Further complicating the job market for recent graduates are several external economic factors including the uncertainty surrounding the 2024 presidential election, potential tax hikes, and high interest rates — which all could introduce additional layers and challenges into hiring practices.
Despite these challenges, graduates are advised to remain proactive and be prepared to navigate a job market influenced by fewer promotions and increased competition for roles. Building on professional networks and skills, and leveraging online portfolios, can provide some advantages. As the job market evolves, these tactics will be important for new graduates who are looking to find their place in the workforce.
