Entry-level workers are losing confidence in the job market, says Glassdoor: 'I applied to over 200 to 300 jobs'

Employee confidence has declined, hitting 44.1% in May, driven by economic uncertainty and rising layoffs, with U.S.-based employers cutting 93,816 jobs, a 47% increase year-over-year. Entry-level employees are the least optimistic, with confidence at a record low since 2016, as new graduates face challenges entering the workforce due to a low hiring environment and increased competition from experienced workers; this limits opportunities for career advancement.

Analysis

The U.S. labor market is exhibiting signs of softening, underscored by a decline in employee confidence to 44.1% in May, as reported by Glassdoor, with workers citing economic uncertainty, potential tariffs, and layoffs as primary concerns. Layoff mentions on Glassdoor surged 9%, and U.S.-based employers announced 93,816 job cuts in May 2025, a significant 47% increase from 63,816 in May 2024, according to Challenger, Gray & Christmas. Concurrently, job additions slowed slightly to 139,000 in May from 147,000 in April, per the Bureau of Labor Statistics. Entry-level employees are disproportionately affected, with their confidence plummeting to 43.4%, a record low since 2016. This pessimism is fueled by a challenging hiring environment making it difficult for new graduates to secure initial employment, exemplified by individuals applying to hundreds of jobs without success. For those already employed at an entry-level, reduced hiring activity limits leverage for internal advancement or securing promotions and raises through job changes, exacerbated by increased competition from more experienced laid-off workers vying for similar roles. This scarcity of growth opportunities is a key factor weighing on the confidence of younger workers.

Key Decisions for Investors

• Investors should closely monitor upcoming labor market indicators such as job openings, unemployment claims, and wage growth, as continued deterioration could signal a broader economic slowdown impacting corporate earnings, particularly in consumer discretionary and cyclical sectors.
• Consider adjusting exposure to companies heavily reliant on robust consumer spending and strong employment, as declining employee confidence and rising job cuts may dampen consumer demand, especially among younger demographics facing a difficult job market.
• Evaluate companies for their resilience to a weaker labor market, focusing on those with strong balance sheets, diversified revenue streams, and effective human capital management, as these may be better positioned to navigate potential economic headwinds.