After graduating from Ohio State University in 2021 with a master’s in social work, Jenny Flora Wells applied to 400 jobs and ended up getting three interviews.
“I was told that an MSW was the golden ticket and would guarantee me a job. I did everything by the book, had a 4.0 GPA, used career services, had my resume checked four times. I did everything by the book and still couldn’t find a job,” Wells said.
Wells now helps other recent grads who have been traumatized by the job search. She is a licensed social worker based in Los Angeles. While searching for work, Wells landed an internship with Ohio State University’s career services department, where she gained expertise in the niche field of job-seeker counseling.
“Younger generations are working harder than ever before, but nothing is getting done because no one is giving them jobs,” Wells said.
The picture that Wells has personally experienced, and now sees professionally, of graduates left overwhelmed and emotionally exhausted by an unforgiving job market is confirmed by labor analysts and academics.
A new bifurcation in a robust labor market
“We’re currently seeing a polarized labor market, with jobs that need to be filled often heavily skewed toward people with less than a bachelor’s degree,” said Rachel Cederberg, senior economist and research manager at labor analysis firm Lightcast.
“We’re hearing this from students, and the labor market data backs it up,” said Cederberg, who is also an adjunct professor of economics at Stonehill College, adding that he’s seeing student dissatisfaction firsthand.
For example, data from Lightcast shows that job ads targeting bachelor’s degree holders with two years or less experience saw little change in the top job titles, industries, and desired skills between January and May 2023 and January and May 2024. However, there were 148,500 fewer job ads for the same period in 2024 than in 2023.
For jobs that don’t require a degree, the number of job openings is up slightly from last year, from 65.75% of job openings in 2023 to 65.98% so far in 2024. But eight of the top 10 job listings in March were for jobs that don’t require a college degree, according to data from Lightcast.
“For jobs that don’t require a degree, there is a huge shortage of workers and they are struggling to find work,” Cederberg said, adding that there was strong demand in trade, retail, hospitality and leisure.
“This is partly because as life returns to normal after four years of COVID, many baby boomers are aging out of the workforce and leaving a lot of vacancies. The average age of people in key occupations is quite high and they need to be filled. We can’t do without plumbers, for example,” Cederberg said.
It’s not a lack of employment for degree holders, it’s a mismatch of applicants
Cederberg says that part of what we’re seeing is Job market I’ve only just come back to reality for graduation and I’m barely depressed.
“The labor market is not weak. We’re used to the incredible strength and turmoil of the past two years,” Cederberg said. Many companies stepped up hiring immediately after the pandemic, so some college seniors already have jobs lined up while they wait to finish their degrees, she noted.
Not only is there a polarization between those with degrees and those without, but there is a similar divide in the market for degree skills, with some jobs attracting large numbers of applicants while others remain vacant, making it even more competitive for jobs that new graduates want.
Cindy Mace, director of undergraduate career services at the University of Iowa’s Tippie College of Business, said the dynamics are coming in what could be described as a fragmented and uneven job market. Her office uses platforms like Handshake to connect alumni with potential employers, and has seen an all-time high in job ads. But numbers don’t tell the whole story.
“The jobs that are out there don’t necessarily match the wants and needs of applicants. There’s a mismatch between the needs and the talent pool,” Mace said.
This means some jobs are inundated with applications while others have empty application boxes.
Marketing jobs have a lot of applicants, but “people with accounting degrees just can’t come out fast enough,” Mace said. He added that most recent graduates want different experiences out of a job than their slightly older peers. New graduates want to return to the office, while older workers are more open to maintaining a pandemic-era remote workforce.
Don’t rely too heavily on college as a differentiator
“Employers are keenly aware that non-traditional pathways into the workforce, beyond just a college degree, can give you skills and experience that qualify you for many jobs,” said Christina Schelling, Verizon’s chief talent and diversity officer, who oversees the company’s hiring pipeline.
Schelling said while the job market for the class of 2024 is strong, it’s a mistake to focus too much on getting a degree — about 99% of Verizon’s more than 100,000 open jobs don’t require a college degree — and added that soft skills like collaboration, critical thinking and empathy are more important than ever.
“It’s easier to teach technical skills than it is to teach persistence and how to find creative solutions to problems,” Schelling says. “That’s why in interviews, candidates should emphasize their desire for continuous growth and intellectual curiosity. Large companies are investing in their employees and focusing on building skills more than ever before.”
Some labour market experts point to onerous application requirements as a potential factor further muddying an already tough graduate job market.
“The recruiting process is broken,” said Justin Marcus, co-founder and CEO of Big 4 Talent, which matches college graduates with jobs in finance and accounting that are among the hardest to fill.
Marcus said recent graduates don’t have the patience or time to jump through the hoops required to use applicant tracking systems that require uploading resumes and filling out questions manually. He also said that both employers and recent graduates are looking harder. Companies are looking harder and are looking for experience even for “entry-level” roles.
“Obviously it varies by industry, but many ‘white-collar’ jobs are increasing their requirements due to the volume of applicants,” Marcus said.
Ultimately, graduates’ job market prospects depend on where they are, what they’re applying for, and what they want, he says – a single unemployment figure no longer tells the same story.
“Unemployment trends vary widely across industries, regions and levels,” Marcus said.
Meanwhile, Wells is noticing psychological anxiety among clients who had hoped earning a degree would put them on a path to success.
“Everybody used to tell me I could go to college, get a master’s degree, find what I’m good at, be successful, live a comfortable life, and achieve the American dream, but it turns out it’s a lot more complicated than that,” Wells said. “In 2024, the job market is going to change dramatically.”
