For many millennial job seekers, today’s labor market may feel eerily familiar. More than a decade after the Great Recession, a new wave of stagnation—what analysts are calling the “Great Freeze”—is making the search for meaningful work feel like déjà vu. Opportunities are scarce, hiring has slowed dramatically, and new graduates are finding themselves thrust into a landscape that resembles the sluggish recovery of the early 2010s, even as official unemployment rates remain deceptively low.
“This is one of the worst times to really find a new job since the aftermath of the Great Recession,” Sarah Foster, an economic analyst at Bankrate, told Business Insider. Her new report breaks down a paradoxical labor market where both job seekers and employers are staying put, creating a standoff that leaves few openings for those trying to enter the workforce.
During the post-pandemic rebound in 2021, workers held extraordinary leverage. Job switching surged, companies scrambled to hire, and the economy was still bouncing back from historic layoffs. But that momentum has faded. Hiring has steadily slipped—from 4.6% in November 2021 to just 3.2% this past August, the lowest level outside a recessionary period since 2013. The slowdown is particularly brutal for new graduates and early-career professionals whose résumés are thinner and networks smaller.
Unemployment remains relatively low at 4.3%, yet the number obscures a puzzling reality. Both labor supply and demand have weakened, making the metric harder to interpret. “What’s unusual is how sharply hiring has fallen compared to the uptick in unemployment,” the report explains. Historically, today’s hiring rate corresponds with an unemployment level closer to 6.8%—a sign that employers are behaving as though the economy is still emerging from a downturn.
Foster describes this moment as a “jobless boom.” Corporate profits are strong, the stock market is thriving and economic growth has accelerated—yet companies are not expanding payrolls. Instead, they’re pouring resources into productivity-enhancing technologies like artificial intelligence. Growth is happening, but without the traditional engine of job creation that typically accompanies it.
A Difficult Search for Many
With fewer openings available, job seekers are improvising. Recent graduates are sending out dozens of applications with little response, while some frustrated candidates—young and older alike—are considering entrepreneurship or taking temporary work merely to stay afloat. Parents watching their children struggle see a job market far less forgiving than they expected; older job seekers worry about age discrimination as rejections pile up.
Data from LinkedIn shows entry-level hiring down 6% from last year, with only a handful of sectors—retail, loading and stocking, and sales—showing significant demand for junior workers. But even in these pockets of opportunity, advancement is limited. An Indeed Hiring Lab analysis suggests that job switchers may need to pivot into entirely new industries or find creative ways to build experience through volunteer work or part-time roles.
One job seeker laid off in late 2023 summed it up succinctly: “I thought a year ago the job market was difficult. I think it’s even more so now.”
Finding a Path Forward
Despite the bleak conditions, experts emphasize that success is still possible—though it may require persistence and strategy. Foster’s advice is pragmatic: stay patient, remain determined, and lean into the qualities that make you stand out. Most importantly, don’t underestimate the power of your network.
“When you rely on that human factor and embrace the people you meet throughout your career, that can hopefully help you break the noise-to-signal ratio a little bit,” she said.
It’s a reminder that in a market where algorithms filter résumés and companies invest in automation over people, human connection remains one of the most effective tools a job seeker has.