Job seeker confidence plummets to record low in U.S. – ZipRecruiter
CALIFORNIA, UNITED STATES — Job seekers in the United States are experiencing increased desperation and anxiety as they search for employment, according to a new report from ZipRecruiter.
The analysis was based on the responses of over 2,000 job seekers from the 10th to 16th of the second month of each quarter.
It reveals a significant downturn in job seeker outlook, reaching its lowest point since data collection began in January 2022.
Financial pressures fuel job search desperation
A growing number of job seekers expect fewer job opportunities in the next six months. Additionally, 43% of job seekers are now looking for jobs daily, up from 37% at the end of 2023.
This surge in activity comes as only 15% of job seekers report satisfaction with their search progress, while 38% express dissatisfaction.
Financial strain is a key driver of this desperation. Forty percent of job seekers report falling behind on bills or facing serious financial difficulties.
Consequently, 63% feel compelled to accept the first job offer they receive to achieve financial stability.
“For over a year, economists have been talking about the ‘vibecession,’ or the disconnect between really strong economic data and really weak sentiment,” ZipRecruiter chief economist Julia Pollak told CNBC Make It.
“The issue now is that it’s not just about vibes anymore. The vibes are matching a clear deterioration in the labor market.”
Uneven impact across industries, demographics
While government, healthcare, and social assistance roles remain robust, industries sensitive to interest rate fluctuations, such as manufacturing and tech, are experiencing increased volatility.
Middle-income earners with salaries between $48,000 and $74,999 have seen the steepest decline in confidence. In contrast, high-earners making $115,000 or more are the only group to feel better about the job market compared to earlier in the year.
Older workers above 65, Black and Hispanic workers, and recent graduates under 24 are facing heightened challenges in securing employment.
As the job market continues to evolve, seekers are adjusting their expectations, with desired start times for new roles shrinking from 7½ weeks in early 2024 to just 3½ weeks now.
This compressed timeline reflects the growing urgency and financial pressures faced by today’s job seekers in an increasingly competitive market.
