Can I lose my job if I stop? Things you need to know about profits.
Being off work does not mean that you are automatically eligible for unemployment benefits. Here are some things you need to know before applying:
When Jessica Chibuzor-Muko graduated from university a year ago, she thought that a cybersecurity degree (one of the hottest areas) would serve as a ticket to a job that is almost guaranteed with a good salary.
She then came across a brick wall known as the 2025 US job market.
After over 3,000 applications, five interviews and zero job offers, her excitement got caught up in something close to beaten uppers.
“After getting your first 50 rejections, you’re crying to your mom,” says Chibzolmco, 22, who lives in Denton, Texas. “In the end, you’re very paralyzed by it.”
Recently, she took a break from job hunting, gained a part-time position as a nurse notebook taker, and is looking at a new career path: medication.
“I always wanted to get a master’s degree,” she said. “Maybe I should look at medical school.”
Chibuzor-Muko is one of the 1.7 million Americans who worked for more than six months and is classified as the longest unemployed in two years, according to the Department of Labor’s April employment report. Their growth has defied the public perception that the job market remains healthy despite the uncertainty created by President Donald Trump’s drastic import duties.
Long-term unemployed people now account for nearly a quarter of all unemployed people. This is well below the 45% share at the depths of the Great Recession in 2010, and 43% during the 2021 Covid slump.
Economists say it’s a concern, especially for recent college graduates and other new entrants into the labour market, as long unemployment spells can affect career courses.
“I think there’s definitely a stigma of being unemployed for a long time,” said Brad Hershbein, senior economist at the We Upjohn Employment Institute.
Is the job market good or bad now?
It is rare for so many people to lose their jobs for a long time in the seemingly rugged labor market. Employment growth averaged 181,000 in March and April, with unemployment rates historically low at 4.2%. On Friday, Labour is expected to report solid employment benefits of 150,000 people in May, according to estimates by Barclays and Capital Economics.
However, forecasters largely attributed the business’s continued unwillingness to fire workers after the pandemic-related workforce shortages from 2021 to 2023. Initial unemployment benefits claims unexpectedly surged in the week ending May 24th, but remained historically low.
What’s going on with employment now?
At the same time, businesses pulled back jobs. The trend began more than a year ago as employees’ wages rose sharply and high interest rates combined with flattening consumer demand to narrow down the profits of businesses. This year has intensified as Trump’s tariffs rekindled inflation, further narrowing corporate profit margins and threatened to cause a recession in the coming months.
“The economy will be slower regardless,” Hirschbain said after the 19-post explosion after demand. “The (customers) issue has gotten worse.”
US jobs of 5.4 million in March fell from the peak of 6.8 million in November 2021 to the peak of 5.8 million in late 2019, before the pandemic. Results: Not many people are losing their jobs, but those who do so have a hard time finding new roles as they join the slowly expanding river of unemployed people who compete with each other and hire Americans to hire limited stocks of vacant seats.
“It’s getting more and more difficult to return to employment after you lose your job,” said Dante Diantonio, economist for Moody’s analysis.
In May, the average number of job hunters for applications submitted on LinkedIn was 45% higher than the figure a year ago, the network site said.
Companies are replacing employees leaving, saying “it’s not necessarily adding staff,” says Brandi Britton, executive director of recruiting company Robert Half. “Employers are definitely paying attention,” amidst the uncertainty caused by trade disputes.
What about the employment market for university graduates?
While unemployed job seekers pay a significant price, the coldness in employment has particularly affected new entrants into the workforce and workers who return after leaving to look after their children and other reasons, Hirschbain said. So far, the number of long-term unemployed people aged 20-24 has increased by 32% compared to the same period in 2019, but there is a 19% increase in equally idolized workers of all ages, statistics from the Labor Department show.
During periods of limited employment and widespread uncertainty, “You want people with track record,” Hirschbain said, explaining the views of many employers.
“That’s a lot of silence.”
Chibuzor-Muko, a May 2024 graduate, frequently responds to job ads looking for entry-level candidates, but the company later revealed that applicants prefer three to five years of experience.
“What is the entry level?” she asked. “I’ve just graduated.”
Robert Half’s Britton said many companies “want to have people with job experience on an entry-level salary” as they try to save cash and minimize risk. And for the cooling labor market, they can generally get what they want, she said, advises job seekers to be “adaptive and flexible” and drops remote or hybrid work or hybrid requests if necessary.
After she graduated, Chibzol Muko said she applied to a cybersecurity job by saying, “I woke up every day.” However, after months of rejection, her enthusiasm faded, she said, adding that she had no response from most employers.
This year, Chibuzor-Muko took classes online in anticipation of a richer opening qualifier for data analysts. She sns two interviews but had no offers.
What are the side effects of long-term unemployment?
Even for experienced workers, long-term unemployment rates can become self-past cycles, Hirschbain noted that some companies believe that skills of long-time job seekers could be dull.
He said the dilemma has been amplified due to recent graduates who may have received their initial offer and may feel overqualified for the job. “It can have a long-term impact on the money you can make and the companies you can work for,” he said.
Deantonio downplayed the concerns, which was a major concern during the Great Recession, but today’s job market is more resilient and should pick up quickly after tariff-related uncertainty has disappeared. “I think we’ll minimize some of these negative effects,” he said.
Meanwhile, experienced unemployed workers are also struggling. In mid-May, 1.9 million Americans received continued unemployment benefits.
“I never thought it would take this long.”
When Houston’s Kiersten Ortiz-Cole lost her marketing job at Recruit Agency last August, she thought she would acquire a new position within months. Her company was crafting workers, but her clients still spend money, appearing to reflect a stable economy and labor market.
“I never thought it would take this long,” said Ortiz-Cole, 37, who has nearly 10 years of marketing experience.
Initially, Ortiz-Cole sent 5-10 applications a week, tailoring each to the associated employer. However, she discovers that the company is particularly selective, requiring candidates not only have a marketing background, but also experience in the company’s industry.
She is also frustrated by the decline and flow of the job market season,
Last fall, many businesses limped into employment due to uncertainty related to the presidential election, and holidays. Employers’ interest was featured in January and February, but again slowed in March due to Trump’s tariffs.
“It was just a roller coaster,” she said.
Earlier this year, she decided to hone her skills through online marketing courses, connect with people she knows on LinkedIn, and focus more on participating in networking events for marketing professionals. However, the latter strategy made me feel sick when it turned out that most attendees were unemployed themselves.
They were “on the same boat as me,” she said.
Ortiz-Cole has taken 7-8 interviews and won twice in his third round. However, one employment manager told her he still had 600 resumes to review. And when jobs appear on LinkedIn, they often draw around 100 applications within a few hours, she said.
“It’s very discouraging and constricting because you can’t control it,” she said.
In January, she began several interviews with the company over three months, and was convinced she would reach a peak in her job openings. However, the candidate who was already working has achieved that position.
“That was my low point,” she said.
“Living every day”
Ortiz-Cole’s unemployment allowance has run out for a long time. She and her husband, who are employed, are already “live on their pay” before the layoffs to buy a mortgage and daycare for her 5-year-old son, she said.
She is increasingly craving small joys from life, including streaming services, ordering dinner delivery several times a week, shopping for clothes from local stores, and coffee in the morning. She burned most of her 401(k) money to pay off her car loan and made the most out of her credit card.
“We’re always in a conversation,” she said. “We live every day and are ready to make what we need to make the cuts we need.”
She said that the cautiously optimistic employment will soon be well-behaved, but it appears that employers don’t have a clearer picture.
Tina Hamilton, who owns Bethlehem, Pennsylvania, said HR consulting firm MyHR Partners is planning to add nine employees to its 41 staff. But after Trump announced global mutual tariffs on April 2, demand for her employment services plummeted 50%, she said.
Revenues from pay, employee relationships and other HR services have risen this year, but hiring jobs has led to flat overall sales and Hamilton is urging him to scale back his employment plans. She hopes to add one or two employees in 2025.
“It almost happened all of a sudden,” she said.
Meanwhile, trade wars have become almost constant liquidity. This week, the International Trade Court defeated most of Trump’s mutual costs, but they remained while officials appeal the ruling. And Trump could adopt other legal strategies to impose tariffs, experts say.
“No one knows what to believe,” Hamilton said. “Everyone is late…everyone is waiting.”
