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Despite having advanced degrees, years of experience, and in-demand skills, more white-collar professionals are staying unemployed for longer — some for over a year — as hiring slows in key industries like tech, construction, and law.
New labor data shows that nearly 26% of unemployed workers have been out of work for more than six months — the highest share in more than three years. And for the first time, college graduates now account for one-third of this group, a sharp rise from one-fifth just a decade ago, according to The New York Times.Â
The trend isn’t driven by a lack of effort. Many job seekers report sending out hundreds, even thousands, of applications — only to be met with silence or rejection for being “overqualified.”Â
Some have turned to freelance gigs, retraining, or launching small businesses just to stay afloat.
Behind this surge in long-term joblessness is a mix of economic pressure and automation. As interest rate hikes slowed construction and tech companies downsized, the demand for high-skilled roles fell.Â
At the same time, AI and software tools have taken over tasks once done by professionals — everything from drafting legal contracts to writing code.
And it’s not just technical roles. Many office-based jobs are now being partially or fully automated, reducing the number of available positions for even the most educated candidates.Â
Hiring algorithms and online platforms have added another layer of difficulty, making it harder for applicants to stand out, especially in industries flooded with applicants.
Those out of work long-term report rising anxiety, financial strain, and deep frustration with a system that no longer rewards the usual formula of college, hard work, and experience. While some eventually land temporary gigs, many find the quality of available work falling short of their qualifications…and their bills.
This rise in educated, unemployed professionals points to a growing disconnect in the labor market, where experience doesn’t guarantee opportunity, and credentials are no longer enough.
