The latest national jobs report may be "solid and steady," but for recent college graduates, the job market is increasingly challenging, especially for those seeking remote positions.
Key findings from the May jobs report:
- 172,000 jobs added to the U.S. economy
- Unemployment rate holds at 4.3% nationally, 3.7% in North Carolina
- Hiring concentrated in healthcare, leisure/hospitality, and local government
Remote work's impact on new graduates: According to Kenan Institute Research Economist Sarah Dickerson, remote employers are hiring fewer new graduates because they are less eager to "hire, train and mentor" them remotely. This is supported by a new study from the Federal Reserve Bank of New York, which found that unemployment among young people increased by almost one full percentage point between 2017-19 and 2022-24.
While young graduates in in-person jobs saw a larger unemployment spike at the start of the pandemic, their prospects returned to normal faster than those seeking remote jobs. AI and automation are also contributing factors.
Other economic headwinds:
- Decline in foreign-born labor is impacting agriculture and construction, leading to higher wages and higher prices for food and housing.
- Core inflation at 3.3% annual rate
- Households are spending more than their income supports, with personal savings down
- Higher energy prices tied to geopolitical uncertainty will likely continue
Dickerson warns that this "low-hire, low-fire" environment is not sustainable, as Americans dip into savings or rely more on credit, making GDP growth appear stronger than it actually is.
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