Gen Z Is Learning the Truth About the ‘Strong’ Job Market
The low unemployment rate masks a harsh reality for young workers — employers are cautious about bringing on new staff.
Employers are cautious on hiring.
Photographer: Allison Joyce/Bloomberg
The US payrolls report last Friday showed an economy where the unemployment rate remains low and job additions have been solid. But that’s only part of the story. The rest was in the government’s survey of households, which revealed a sobering picture about the job prospects of young people and those who have been seeking work for many months.
These two groups find themselves in an environment where employers are reluctant to let go of existing workers but, on the flip side, are also wary of hiring new staff. In that sense, the labor market shares some dynamics with the housing market: perfectly healthy for those who landed their spot prior to the start of the Federal Reserve’s campaign of interest rate increases in mid-2022, yet more challenged for those trying to find a job (or a home) today. It’s important for policymakers to keep the two-tier nature of the labor and housing markets in mind as they map out their projections for the economy and interest rates in the months to come.