White-collar job market slump

[UNITED STATES] The white-collar job market in 2025 is experiencing a significant downturn, with companies taking longer to fill positions and many professionals facing prolonged unemployment. Despite a relatively low national unemployment rate of 4.2%, the reality for job seekers is starkly different, especially in sectors like technology and finance.

Job Openings at a Standstill

Data from Russell 3000 companies reveals a concerning trend: in October 2019, 91% of job postings were filled within six months. By October 2025, this figure had plummeted to under 50%. This slowdown is attributed to ongoing economic instability, trade policy uncertainties, and a cautious approach to hiring by employers.

Adding to the concern is the rise of “ghost jobs”—positions advertised online that companies have no immediate intention of filling. Industry analysts suggest that some employers maintain these listings to give the illusion of growth or to collect resumes for future openings. This practice not only frustrates job seekers but also inflates perceptions of labor demand, masking the true extent of market contraction.

Tech Industry Hit Hard

The technology sector, once a beacon of growth, is now at the forefront of the employment crisis. Positions in IT, quality assurance, and product management have seen hiring declines of 27%, 32%, and 23%, respectively. Even engineering roles, traditionally considered recession-proof, have experienced a 26% drop in recruitment. The rise of artificial intelligence tools, such as AI coding assistants, has further diminished the need for human programmers, leading to reduced hiring and increased layoffs.

Compounding the issue, venture capital investment in startups—once a significant source of tech employment—has cooled dramatically. According to Crunchbase, startup funding in Q1 2025 is down 40% year-over-year. With tighter capital, many early-stage companies are implementing hiring freezes or downsizing altogether, removing a traditional safety net for displaced tech workers.

Professionals Facing Rejection

Jon Bach, a former director at eBay with 13 years of experience, exemplifies the struggles many professionals face. After applying to 135 job openings, he received 91 non-responses, 42 rejections, and only two callbacks, with no offers. This sentiment is echoed by many in the industry, highlighting a disconnect between the number of applications submitted and the limited opportunities available.

Recruiters also report a sharp rise in overqualified candidates applying for mid-level or junior roles, leading to difficult hiring decisions. “We’re seeing resumes from VPs and senior managers for associate-level jobs,” said a hiring manager at a Fortune 500 firm. “There’s a real mismatch between available roles and candidate expectations.” This saturation of the talent pool has increased competition even for lower-tier positions, displacing less experienced applicants.

Economic Factors at Play

Several economic factors contribute to the current job market challenges. Rising operational costs, particularly in the electric vehicle sector, have led companies like Volvo to announce significant layoffs. Additionally, global trade uncertainties and inflationary pressures have caused firms to adopt a more conservative approach to hiring.

AI's Role in Job Displacement

Dario Amodei, CEO of AI firm Anthropic, warns of a potential "white-collar bloodbath" due to rapid advancements in artificial intelligence. He predicts that AI could eliminate up to 50% of entry-level white-collar jobs in the next five years, particularly in fields like technology, finance, law, and consulting. Amodei advocates for transparent communication and policy planning to mitigate the economic and societal impacts of widespread job displacement.

Meanwhile, educational institutions and workforce development agencies are scrambling to adapt. Community colleges and online platforms are ramping up programs focused on AI literacy, cybersecurity, and data analytics. However, the pace of upskilling efforts may not be fast enough to keep up with evolving employer demands. Many professionals in mid-career stages find it particularly difficult to pivot, especially without subsidized training or clear industry pathways.

Job Seekers Settling for Less

In response to the challenging job market, many professionals are accepting lower-paying positions. Some have taken jobs paying as little as $25 an hour, a significant decrease from their previous six-figure salaries. This trend reflects the desperation of workers who, after prolonged unemployment, are willing to accept any available opportunity to re-enter the workforce.

The current white-collar job market presents unprecedented challenges for professionals across various sectors. While the national unemployment rate remains relatively low, the reality for job seekers is marked by prolonged unemployment, increased competition, and the disruptive impact of artificial intelligence. As companies navigate economic uncertainties and technological advancements, the future of white-collar employment remains uncertain.