Pessimism about the job market is spreading across the U.S., as hiring slows despite a still-low unemployment rate. Workers say it is becoming increasingly difficult to land a good job, signaling a growing gap between headline labor data and real-world experience.
Sentiment toward the job market has turned sharply negative in recent months. According to a new survey by Gallup, only 28% of respondents said it is a “good time” to find a quality job, while 72% described it as a “bad time.”
That marks a dramatic reversal from mid-2022, when roughly 70% of Americans viewed the job market positively. Even as recently as late 2024, sentiment had been closer to evenly split before turning decisively pessimistic.
■ ‘Low-Hire, Low-Fire’ Labor Market
Economists attribute the shift to what they describe as a “low-hire, low-fire” environment. Companies, wary of economic uncertainty, are holding on to existing workers but remain reluctant to expand headcount.
Data from the U.S. Department of Labor supports that view. The hiring rate fell to 3.2% in November, the lowest level since 2013.
While layoffs remain limited, the slowdown in hiring has made it harder for job seekers—especially new entrants—to find opportunities.
■ Young Workers and Graduates Hit Hardest
The downturn in hiring is being felt most acutely among younger and more educated workers.
Only 19% of college graduates said it is a good time to find a job, compared with 35% of workers without a degree. The gap reflects weakness in white-collar sectors such as software, customer service and advertising, which have seen reduced hiring over the past two years.
Age differences are also striking. About 20% of workers ages 18 to 34 expressed optimism about the job market, compared with roughly 40% of those 65 and older.
Older workers, who are more likely to already be employed, appear relatively insulated. Younger workers entering or re-entering the labor force face far fewer openings.
■ From Labor Shortage to Job Shortage
The broader labor market dynamic has also shifted.
There are now about 7.4 million unemployed workers, compared with roughly 6.9 million available jobs—reversing the labor shortage that defined much of the post-pandemic period.
This imbalance suggests that, despite low unemployment rates, competition for jobs has intensified.
■ Economic Anxiety on the Rise
The growing pessimism is spilling over into broader economic sentiment. Consumer confidence has slipped to the low 90s, near post-pandemic lows, reflecting heightened concern about the economy.
Analysts say reduced labor market mobility is a key issue. With fewer people quitting and fewer jobs being created, workers have fewer pathways to improve their situation.
“Hiring has slowed without a corresponding rise in layoffs, which makes the market feel stuck,” one economist noted. “For young and highly educated workers in particular, the sense of limited opportunity may persist for some time.”
