The US job market is becoming increasingly difficult for job seekers, with many facing prolonged searches and fewer responses from employers, Newsweek reports.
According to recent research from LinkedIn, more than a third of job applicants report applying to more jobs than ever but receiving fewer responses. The current climate has left many feeling discouraged, with one in five job seekers still searching for employment after more than a year and 26% of people stating they do not plan to job hunt in 2025 due to the challenges.
Following the pandemic, remote work became more widespread, and many economists initially believed that the job market had shifted to an employee-centric environment. However, recent trends indicate that this shift may be reversing. Job seekers are facing an environment where competition for roles is high, and employers are increasingly looking for highly specific skill sets.
The LinkedIn study also revealed that over half of those searching for a job are open to considering roles in new industries, indicating a willingness to adapt to the changing landscape. This flexibility, however, has not made it easier for many to find stable work.
The difficulties faced by job seekers are evident in the feedback of various experts. Alex Beene, a financial literacy instructor, pointed out that the combination of a higher cost of living and growing job responsibilities has prompted many to apply for new positions. Yet, the application process itself remains frustrating. Many applicants send out the same resumes and cover letters repeatedly, hoping for a breakthrough, only to be met with silence. Beene emphasized the need for job seekers to customize their application materials for each role, although this can be a time-consuming and tedious process.
HR consultant Bryan Driscoll also highlighted a significant issue with the modern hiring process. He noted that companies have become overly reliant on automation and AI to screen resumes, which often filters out qualified candidates before a human reviewer even sees their application. This practice, he argued, has led to inefficiencies and demoralization among job seekers, creating a disconnect between the effort applicants put in and the systems that reject their applications.
Job seekers have also reported encountering “ghost jobs”—positions that are listed online with no real intention of hiring. This trend, according to finance expert Kevin Thompson, reflects the shift back toward an employer-driven market, where businesses are regaining the upper hand after the pandemic.
The rise of AI-powered screening tools has also introduced a new challenge, as many qualified candidates are being overlooked due to the precision required by these systems. Michael Ryan, a finance expert, referred to this as the “precision paradox,” where AI filters are highly efficient but often screen out applicants who might not meet the exact keyword criteria, even though they are otherwise qualified for the role.
While many companies are seeing record profits, a growing concern is that these profits are not translating into more jobs or wage increases. Driscoll noted that if job seekers cannot find stable employment, consumer spending will likely slow, further affecting the economy. With 26% of people planning to refrain from job hunting, this disengagement could have long-term consequences.
Thompson warned that the combination of job seekers feeling discouraged and the shift in power toward employers may lead to more individuals opting out of the job market altogether. This could result in longer periods of unemployment and lower workforce participation. For those who eventually re-enter the job market, they may find themselves limited to high-turnover service sector positions, with little bargaining power when it comes to wages.
