Unemployment Is Low, But No One Is Hiring. Experts Are Calling It The Big Freeze.

What do you call it when unemployment is at record lows at the same time that hiring is similarly stalled? Actually, there’s no word for that because it’s never really happened—so experts came up with one: the big freeze. Usually if unemployment is low, that’s a good sign for job seekers. Unfortunately, the circumstances bringing about this current situation seem to be partially based on widespread uncertainty among workers … which means they will rarely leave a job to seek something else. Indeed, the percentage of workers voluntarily quitting has fallen to nearly its lowest level in a decade.

The other reason for this situation may come down to a backlash from the post-pandemic moment from 2021 to early 2023 when so many people were reevaluating their life situations and quitting their jobs that economists at that time dubbed it “the great resignation.” Perhaps burned from those times, employers seem much less likely to let people go now or want the disruptions that can come from hiring, training and onboarding new team members.

All of this is likely to be the toughest news for new graduates entering a job market where no one seems to be vacating any spots for them to take over. Which means we will likely see many more stories like this one from HBR about how to get hired when AI does the job screening or this one about the necessity to always be upskilling. If you’re currently affected by this “big freeze” — I’d love to hear from you. Share your story and let me know your experience.