New high school and college graduates entering the workforce are facing the most hostile job market since the 1980s, according to reports. Data from the Federal Reserve Bank of Richmond show that 13.4 percent of unemployed Americans in July were “new labor force entrants,” or people with no prior job experience. While the overall number of unemployed people is down to a relatively low 4.2 percent, the large number of new entrants, coupled with an increase in the number of people who have been unemployed for more than 27 weeks, suggests the job market is tightening and that companies are reluctant to expand their workforce further or take a chance on inexperienced applicants. Economist John O’Trakoun, who carried out the research for Richmond Fed, said the frozen job market is part of a “double whammy” for Gen Z, many of whom began their college careers on Zoom during pandemic lockdowns and are now entering a sluggish labor market with few opportunities for progression.
