Here we are again—predictions on the job market for the Class of 2023. I do not have a crystal ball but I have carefully followed the news and job reports on this topic. I also speak with dozens of parents, students, and grads every day and have first-hand accounts of what our early job seekers are experiencing. Here is my summary:
The Bad: (let’s get this over with first)
Tech firms are scaling back… and rescinding job offers. Amazon, Zoom, Spotify, Meta, Microsoft, and Salesforce are a few of the many tech firms scaling back on hiring. We have clients who had an internship or full-time job offer with these firms and it was delayed or rescinded.
Young adults are being laid off after barely a year of employment. Grads from the class of 2022 and earlier are experiencing layoffs after a short stint of being employed. Many are starting over in their search.
Covid proved to be a setback in career planning for the Class of 2023. The graduating class of 2023 is the first class to graduate where they have been dealing with COVID disruptions since Freshman year. This includes fewer internships and facing more academic and mental health challenges than pre-Covid grads.
The average time to land a job in 2023 has increased to 6 months from 5.5 months in 2022.
A big disconnect remains between employers’ expectations and college grads in terms of workplace readiness. Employers cited the skills college graduates lack the most are interpersonal skills, problem-solving skills, leadership, and written and oral communication.
The Good: The Big Picture
According to NACE, employers plan to hire 14.7% more 2023 graduates compared to the class of 2022. Firms are eager to hire 2023 grads.
Government agencies are looking for 36% more entry-level software workers than a year earlier, and the construction sector is looking for 28% more, according to the college hiring platform Handshake,
An executive order was signed eliminating four-year college degree requirements for most state jobs in Pennsylvania. Job postings will be based on experience and skills rather than education. It is expected that many states will follow.
LinkedIn has seen a 21% increase in job postings advertising skills and responsibilities instead of qualifications.
U.S. employers added 517,000 jobs in January. Leisure and hospitality employers led the outsized January gains. The IT job market will add 174,000 positions in 2023
And other interesting developments that may impact the job market:
ChatGPT – this could change the job search process – from automating cover letters to creating resumes and interview responses. And employers may integrate more AI into the screening process.
TikTok – Making TikTok content for brands is the hot new gig. As the social media platform continues to explode in popularity, brands are hiring college students and other young people to develop content. Or look to TikTok as a platform to hire.
Even Next Great Step went viral on TikTok for an interview hack.
So what do we do with all of this dizzying information?
The only guarantee for 2023 is constant change. With uncertainty, the only thing one can control is their own actions. How one prepares and presents themselves is critical for success in the job search journey.
Grads need to differentiate themselves from those with similar degrees and resumes. They do this by defining their value to the employers and showing they can solve problems for the company.
Being prepared is key. Understanding the goals and objectives of a company (which can easily be researched) combined with interview practice can help make candidates stand out from their peers and progress in the hiring process.
And finally, persistence and perseverance are necessary to endure a challenging job market. Students who continually follow up to show interest and persist to get a meeting with a contact will separate themselves from the rest.
As we navigate these continued changes, we are here to support you and your family to navigate this process. Want to learn more about how we help students and grads land their internship or first job? Let’s Talk or call us today at 973-577-6161.