Why Are So Many Americans Unable To Find A Job

Americas' Unemployment Problem
In 2023, the United States reported an unemployment rate of 3.4%, marking the lowest figure in 54 years with nearly 11.2 million unemployed Americans. Despite this historic low, the narrative surrounding America's Unemployment Problem reveals a complex and multifaceted issue. The early months of 2024 have shown a robust labor market, yet a significant portion of Americans, approximately 12%, find it exceedingly difficult to secure employment. This dichotomy raises questions about the true strength and accessibility of the American job market.

The challenge of finding a job in this environment is underscored by the experiences of unemployed workers, who, on average, apply to 30 jobs but receive a mere four responses. The job search process has become notably grueling, with a Pew Research Center survey indicating that 55% of unemployed adults feel burnt out from their job search efforts, a sentiment particularly pronounced among younger generations.

A critical issue exacerbating the unemployment problem is the inefficiency and impersonal nature of the job application process. Technological advancements and the proliferation of job platforms have led to a surge in applications for each position, overwhelming employers and leading to a significant number of candidates being overlooked. Glassdoor's 2023 study highlighted an increase in complaints from candidates about being ignored by prospective employers, a trend that worsened post-Covid-19 pandemic.

Moreover, the hiring process itself has become more drawn-out and demanding, with the average time to hire reaching a record 44 days in early 2023. Some sectors, such as energy and defense, take even longer. The extensive use of multiple interviews and assessments has not only prolonged the hiring process but also, according to many applicants, failed to accurately assess their skills and suitability for the job.

The labor market dynamics can be described as either "tight" or "loose." Despite low unemployment figures, economists characterize the current American labor market as loose, a condition partly attributed to the aftermath of the "Great Resignation" and the massive layoffs in the tech sector in 2023. The cooling labor market, coupled with employers' hesitance to hire due to uncertainties over skilled labor availability, has left many Americans struggling to find job opportunities.

Additionally, LinkedIn's research found that job search intensity among U.S. applicants increased by 27% in 2023, with the ratio of jobs to active applicants worsening from one to one in 2022, to one to two in 2023. This shift highlights the growing challenges and competitiveness in the job market.

Experts believe that the labor market's current state, while appearing weak, is not necessarily a cause for alarm. It reflects a normalization following the pandemic's hiring surge. However, the Federal Reserve's measures to combat inflation, including interest rate hikes, have contributed to the economic slowdown, affecting the labor market. The resilience of the labor market is being tested, and although there's optimism about the economy's recovery, the reality of job searching remains daunting for many Americans, illustrating the broader economic challenges and the intricate nature of America's Unemployment Problem.

CHAPTERS:
0:00 Unemployment In The U.S.
1:29 Unemployed Workers
2:02 Job Hunting
3:44 Labor Market
4:54 "The Great Resignation"
5:35 Lay Offs
6:18 Job Search Increase
7:08 Interest Rates

Produced by: Samantha Harvey
Edited by: Jacob Smith
Animation: Charlotte Brown
Additional Footage: Getty Images

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[arckmage]

As someone who has over 100 rejection letters in my email, I can confirm that this labor shortage is bullshit.

[masonhancock]

“strong labor market” = tons of crappy $12/hr service jobs or maybe some dirty construction or dangerous field work. This stupid charade has been going on for 25yrs.

[laurab]

Many of the jobs have 300 or more applicants and then a person never sees your application.

[dachicagoan]

Can't find jobs, Can't find affordable housing, Can't find good healthcare, Can't get decent pricing for anything. When will media and government admit we are in a depression?

[davidgnz]

I’ve applied to over 300 jobs that I have been fully qualified for and never heard anything from all but 3 and those were AI generated rejections. This is depressing.

[kortyEdna]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[darkpaw]

It’s not that we can’t find a job, it’s we can’t find a job that pays enough money to live. So why get a job at all?

[joytimmons]

Anyone says that the job market is strong are liars. People are struggling to find jobs. Companies are not being honest about hiring workers for their companies.

[pastsubstance]

Wtf is the government doing?? Wtf are our taxes for if people can’t get decent healthcare, a job, can’t afford groceries, can’t afford a home?! What are these people doing? Just sitting on their asses warming the seat. I’m so done! There are countries better than this forsaken country and just like my parents who immigrated here thinking there was opportunity maybe I should find citizenship somewhere in Europe!

[peterbedford]

Minimum wage jobs everywhere. But that amount of money won't even cover groceries

[Gingerbit-bkdf]

My husband has been out of work since covid. He has been thru interviews over interviews, but still nothing. He is either over or under qualified. You have a better chance of getting in if you have connection within the company

[jz]

1 applicant for 1 job..? 😀 More like 1000 applicant per 1 job..

[jrum]

they want labor hunger games, whoever is the bestest boy gets the job, they'll work harder and for less pay.

[gumballD]

Yet we keep hearing how great the economy is. There's a disconnect between GDP, unemployment rate, and what millions are going through.

[Bluecatwing]

An Entry level web designer needs to have 5+ yrs experience, a masters, and worked for a Fortune 500 company… so they can get paid, Entry level pay. . I mean, pretty much, and reality is people are making idiotic hiring exceptions

[yingyang]

Let’s not forget all the fake job postings that are used to keep stock profits up.

[lic]

Because American companies outsource so many jobs to other countries, especially to India in the tech industry

[jh-ilsb]

the shift of power has gone back to the employers after the great resignation. employers post "ghost" jobs hoping to cherry pick a unicorn, but not really interested in filling the position.

[elishadan]

Looking for ways to earn money daily is sometimes frustrating and is a pain in the ass, I couldn’t really keep it up, it’s exhausting 😔 job hunting is something that drains your physical and mental wellbeing, hoping to get response from people who got themselves employees already but still keeping your hopes high