An economist explains how to get a new job in a 'low firing, low hiring' market

[UNITED STATES] Job hunting today presents a paradox: despite a strong overall labor market, securing a new position remains a significant challenge, according to economists.

In April, the unemployment rate held steady at a relatively low 4.2%, with job growth surpassing expectations. Layoffs remained historically low, suggesting that those currently employed are holding onto their positions. However, the apparent resilience of the labor market obscures deeper issues. Many industries, particularly technology and finance, are experiencing a slowdown in hiring following rapid expansion during the pandemic. Companies are increasingly focused on efficiency and cost-cutting, which has led to fewer job openings and more competitive hiring processes. This shift has made it harder for skilled workers to secure positions that align with their expertise.

The pace of hiring has slowed to its lowest rate since 2014, with nearly 1 in 4 jobless individuals—23.5%—remaining unemployed for more than six months, up from 19.6% a year ago. Cory Stahle, an economist at the Indeed Hiring Lab, described the current trend as a “low firing, low hiring” environment, noting a growing divide between those who are employed and those who are not.

This divide is intensified by mismatches in geography and sector. For example, job openings in healthcare and renewable energy are plentiful, yet workers from industries such as retail and traditional manufacturing may not possess the certifications or training needed to transition effectively. Additionally, with remote work opportunities dwindling, many job seekers are now forced to consider relocation or hybrid arrangements.

For those who experienced the boom in job openings and record-high quit rates just a few years ago, these changing market conditions can feel particularly jarring. “This is just how it is right now: Companies are not hiring,” explained Mandi Woodruff-Santos, a career coach and personal finance expert. “If they are, it’s very infrequent.” Economic challenges, such as trade wars and declining consumer confidence, may further complicate the job search in the coming months, according to economists.

Recent data from the Bureau of Labor Statistics indicates that wage growth is slowing, which could further restrict job mobility. Workers who might have considered switching jobs for better pay are now staying in their current roles, reducing turnover and limiting opportunities for new candidates. This stagnation is particularly evident in entry-level positions, which often become available when more experienced employees move on.

Stahle warned that “the market can’t escape the consequences of rapidly souring business and consumer confidence forever.” Even in this “low firing, low hiring” landscape, there are strategies job seekers can use to stand out, according to experts. "When the market changes, the way you search for a job may also have to be adjusted,” said Jennifer Herrity, a career trends expert at Indeed.

Creative Networking

Experts suggest that job seekers may need to rely more on personal connections than in recent years. Many job openings come through referrals or internal candidates, which means job seekers need to be "creative" and “strategic” about their networking efforts, according to Woodruff-Santos. Digital networking platforms like LinkedIn and industry-specific forums can be vital tools for increasing visibility. Engaging with thought leaders, sharing insights, and participating in online discussions can help elevate a candidate's profile. “Passive networking—building relationships without an immediate ask—can pay off when opportunities arise unexpectedly,” she added. “Instead of waiting for someone to pick your resume from a pile, you have to make it undeniable: Put yourself in front of them.”

Job seekers are also encouraged to seek out less conventional networking events, such as conferences, seminars, book signings, and talks, where they may encounter individuals from businesses with relevant interests. Woodruff-Santos offered an example: If you work in information technology and an author releases a book on corporate security in the realm of artificial intelligence, attending the author’s book signing or seminar could connect you with professionals in the IT security field.

Reaching out to former colleagues can also help get job seekers on a hiring manager’s radar before a position is publicly advertised, Herrity noted.

Internal Opportunities

For workers dissatisfied with their current jobs, experts suggest they explore internal career opportunities that may be more accessible than they appear. "While hiring may appear to be slowing on the surface, it usually just means that opportunities have gone further underground," said Frances Weir, a principal at Korn Ferry. However, she cautioned employees to be strategic and avoid applying to multiple roles within the same company or seeking to transition too soon from a position they’ve held for only a short time.

Tailor Applications

Generic resumes are unlikely to stand out in today’s competitive market, Herrity said. To improve their chances, job seekers should customize their resumes and cover letters for each role, using keywords from the job description and aligning their skills with the company’s needs. Additionally, applicants should take advantage of AI tools to optimize their application materials, such as ChatGPT or resume scanners. However, Herrity emphasized that human oversight is critical to ensure authenticity. “AI can’t replace your unique story—use it as a supplement, not a crutch,” she explained.

Candidates should also highlight measurable results—rather than simply listing job responsibilities—both on their resumes and during interviews. Demonstrating a proven track record of achievements can make a stronger impression on employers.

Upskill and Reskill

During slow periods, employers value candidates who take the initiative to grow their skills, Herrity said. This is especially important for those who have been out of work for an extended period and may face a skills gap. Job seekers can fill these gaps by taking free or affordable courses in relevant fields, signaling their motivation to learn and adapt. Including certifications or completed courses in the “education” or “skills” section of a resume can further demonstrate this commitment.

Be Flexible

While waiting for the ideal job, success may lie in being open to short-term roles, contract work, or exploring adjacent industries, Herrity suggested. These opportunities can help job seekers grow their networks, gain new skills, and position themselves for future full-time roles.