If you’ve been paying attention to the job market lately, something probably feels off.

The headlines say the economy is doing fine — stable GDP, low inflation, rising productivity. But hiring feels slower. Applications are going unanswered. Some job offers are being rescinded. And students graduating into this market are asking a very real question:

Where did all the jobs go?

The answer, according to recent commentary from the U.S. Treasury, is that we may be in what economists call an “employment recession.” It’s a rare situation where job growth slows or even reverses, even though the economy isn’t technically in a recession.

What Is an Employment Recession?

Traditionally, a recession means two quarters of negative GDP growth. But an employment recession is different. It happens when labor market dynamics weaken independently of the overall economy.

In other words, job growth can slow or decline while the economy keeps growing.

Here’s what’s driving it, based on the Treasury’s November 2, 2025 statement:

• Labor supply and demand are softening at the same time. Fewer people are entering the workforce, and companies aren’t hiring aggressively.
• Job losses are happening quietly, often through attrition, automation, or restructuring rather than mass layoffs.
• Some sectors are shrinking, particularly federal jobs, even as others continue adding roles.
• Unemployment stays low, not because the job market is strong, but because fewer people are actively looking.
• Immigration policy and demographic changes are reducing available workers and shifting labor dynamics.

This creates a strange situation. Students feel the slowdown, but official numbers don’t reflect a full-blown recession.

What This Means for Students and Grads

If you’re graduating into this job market, here’s what you’re up against:

• Fewer openings overall, especially in public sector and mission-driven roles
• Longer hiring timelines and more “ghost jobs” — listings that never actually get filled
• More competition per opening, particularly in oversaturated fields
• Higher expectations from employers, who are hiring more selectively

It’s not your imagination. It really is harder to land a job right now.

Why You Can’t Afford to Wait This Out

In a true economic recession, there's often a clear recovery timeline. Stimulus packages, hiring rebounds, and public investment follow the downturn.

In an employment recession, there’s no clear rebound. The labor market is quietly rebalancing. That means waiting for conditions to improve could leave you even further behind in six months.

What You Need Now: Strategy, Not Optimism

In a slow job market, persistence alone won’t get results. You need a system that puts you in front of the right people, in the right way.

That means:

• Positioning yourself to look essential, not just qualified
• Reaching decision-makers directly, instead of relying on job portals
• Using AI to scale your outreach while keeping it personal
• Staying visible online so hiring managers already know who you are
• Starting conversations before roles are even posted

In this environment, success comes from action and not waiting.

How PrepU Helps You Compete in a Slower Market

PrepU was built for markets like this. When the job market slows down, strategy matters more than ever.

We help students:

• Build professional brands that stand out
• Identify 1000 to 2000 hiring managers in their target industry
• Use AI tools to send personalized outreach messages at scale
• Increase their visibility with key decision-makers
• Prepare for high-stakes interviews with coaching and research

We don’t wait for the job market to open up. We help you create opportunity in real time.

The Bottom Line

This isn’t a crisis. But it is a shift.

You can't approach a slower job market with the same tactics you’d use in a hiring boom. Fewer jobs, more competition, longer timelines. That’s the new reality.

But within that reality, there’s still a way forward. The students who succeed are the ones who understand the moment and take control of their search with precision and purpose.

If you’re ready to stop guessing and start gaining ground, PrepU is here to help.

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Photo by Markus Winkler on Unsplash

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