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Gen Z Grads Face Tough Job Market Shift
8 Jan
Summary
- Private payrolls show hiring increase, but professional services decline.
- Skilled trade jobs are growing, while degree-requiring roles are stagnant.
- Wages for new hires have not risen in 16 months, showing market slowdown.
Recent college graduates are encountering a significantly different job market than their predecessors, with a notable shift away from professional and business services. While private payrolls added 41,000 jobs in December, driven by sectors like leisure, hospitality, and healthcare, white-collar sectors experienced losses. This trend suggests a growing demand for vocational and skilled trades over roles traditionally requiring advanced degrees.
The healthcare sector, in particular, is projected for sustained growth due to an aging population and a retiring workforce. Education and health services saw a substantial increase of 39,000 employees in December alone. Conversely, new hire hourly pay has stagnated for the past 16 months, signaling a tougher landscape for those entering the workforce.
While overall job openings remain high, the rate of hiring has flattened, and the market for entry-level positions is tightening. This contrasts sharply with the job market experienced during the COVID-19 pandemic, where remote work and higher wages were more accessible for recent graduates. The current environment favors specialized skills, particularly those aligned with production and emerging technologies like AI.
