WASHINGTON — America’s labor market has entered uncharted territory, with hiring rates plunging to levels not seen since the early days of the COVID-19 pandemic — and before that, the grim aftermath of the Great Recession — even as layoffs and unemployment remain remarkably low, creating a bewildering split-screen economy that experts say has no precedent in more than two decades of government record-keeping.

The numbers paint a stark picture: In February, the hiring rate fell to its lowest point since the spring of 2020, when the nation was shuttered by lockdowns. More than seven million unemployed Americans are now navigating a job market that, by hiring measures alone, mirrors the depths of a recession. Yet for those already employed, the landscape appears comparatively stable, with layoffs holding near historic lows.

“It’s a tale of two labor markets,” said [Economist Name], noting that the current combination of glacial hiring and low unemployment has not been observed in 25 years of available data. “For workers with jobs, things feel steady. For those trying to enter or re-enter the workforce, it’s as if the economy has already collapsed.”

‘I’ve Applied to 50 Jobs — Nothing Has Panned Out’

Nowhere is this paradox more acutely felt than among the nation’s newest job seekers. Soon-to-be college graduates are preparing to enter what career counselors describe as one of the most confusing and unforgiving hiring environments in recent memory.

At a recent career fair at Bridgewater State University in Massachusetts, hundreds of students filed into the athletic center with a singular mission: secure employment before graduation. The mood was tense.

“I’m kind of nervous, a little stressed out,” said Louie Jennings, a senior majoring in business management who graduates in May. “I’m trying to get a job. I still don’t have one.”

Jennings, who hopes to break into sales, described his search thus far as “not great.” He has submitted more than 50 applications — and received just a single interview, secured only through a connection via his father.

He suspects artificial intelligence is part of the problem. Increasingly, hiring managers are deploying AI-powered screening tools to filter resumes before human eyes ever see them. For Jennings, the process has been demoralizing.

“It’s hard to even get an interview,” he said. “They’ll email you back. Then you email them back. And then they’ll just like ghost you.”

His experience is increasingly common. Job reports have swung back and forth between gains and losses for several consecutive months, leaving even seasoned career counselors struggling to interpret the economic tea leaves.

The ‘Ghosting’ Economy

The rise of AI in hiring has fundamentally changed the application process, creating a black box for job seekers who often have no way of knowing whether their resumes have been reviewed by a human being — or discarded by an algorithm.

Career experts say the opaque nature of modern hiring has fueled anxiety among applicants, who increasingly feel they are sending applications into a void. The practice of “ghosting” — where employers simply stop responding after initial contact — has become routine, further eroding confidence.

Nearly 25% of U.S. workers are considered “functionally unemployed”—either jobless and searching for full-time work or stuck in part-time roles earning poverty wages, according to the Ludwig Institute. Ghosting is expected to persist as the challenging job market tightens, partly due to federal government layoffs and employers’ hesitance to hire amid worries about how President Donald Trump’s tariff disputes will impact their profits.

The U.S. economy saw an addition of 22,000 jobs in August, significantly lower than anticipated and a steep decline from the 79,000 jobs reported the month before. The federal government lacks more recent official data due to the shutdown, but economists generally concur that hiring has drastically slowed.

Everyone acknowledges that recruitment managers are facing a difficult period. Many are inundated with applications, often because artificial intelligence has simplified the mass application process for job seekers. Furthermore, the implementation of AI for screening candidates and conducting virtual interviews has stripped away the personal touch from the hiring process, making it easier to ghost applicants.

Damaged self-esteem

When hiring, think about what getting a job signifies for candidates. It enhances their self-worth and serves as a financial safety net. Job seekers deserve honesty. Even an automated reply is preferable to silence. If they aren’t suitable for the position, let them know. If you need to remove the job listing, inform them.

“The emotional impact of uncertainty on mental health is unimaginable,” a reader shared. “You start to believe it’s your fault. You feel like a failure, disappointing everyone. You watch life go on without you. You withdraw from social interactions, constantly fearing someone will ask, ‘What do you do for a living?’ or ‘How’s the job search going?’

“Each time, the silence is more difficult to endure than the rejection itself,” one applicant expressed. “It erodes hope and dignity. Honestly, I’m becoming more apathetic and hopeless.”

It’s also incredibly disrespectful. Another reader from Florida noted: “Submitting a serious job application takes a week. You search, read job listings, research companies, network with knowledgeable colleagues, write a cover letter, customize your résumé, and apply. Then you wait, and wait, and wait. You might hear back, or you might not. You might get an interview, or you might not. You might feel crushed like a bowling ball on your toe, or you might not.”

He continued: “It’s cruel to toy with people when they are at their most vulnerable.

Ghosting is more than just a poor business practice. It’s unjustifiable because it strips individuals of the respect and information they need to process their situation and move on.

Certifications as Lifeline

In response to the punishing job market, many Americans are turning to professional certifications and self-improvement courses to distinguish themselves from the crowd — a strategy that hiring managers say can pay dividends.

“Ninety percent of what we’re looking for is that someone is willing to put in effort,” one hiring manager told reporters. “If you can show that you’ve taken free courses and put in your own time to improve yourself and your career, you are far ahead of 90% of the resumes we receive.”

For some, the pursuit of credentials has taken unexpected turns. Fred, who asked that his last name be withheld, shared his mother’s remarkable story: After 30 years with the same company, she quit to pursue work in a field she genuinely cared about. Before making the leap, she earned a Lean Six Sigma Black Belt certificate — paid for by her former employer.

“She barely studied and was still the best by far only by using her experience,” Fred said. “While taking the course, she was already in talks over the new job she already got. It probably showed that she wasn’t just another middle-aged woman who got laid off because she doesn’t actually do anything worthwhile.”

Career counselors note that community colleges offer a wide range of affordable certification programs, from project management to data analytics, that can help job seekers demonstrate initiative and acquire marketable skills.

A Job-Seeker’s Recession

The current labor market presents a paradox for policymakers and economists alike. While the official unemployment rate remains historically low, the sluggish hiring rate suggests that millions of Americans are locked out of opportunities even as the broader economy shows signs of resilience.

For those like Jennings, who will walk across the graduation stage in just weeks, the uncertainty is palpable.

“I just want to get my foot in the door,” he said.

Whether that door will open for him — and millions of others — remains an open question.