Navigating Today’s Labor Market for Reedies

The job market: the only market anyone really wants to shop in these days, except there’s one very real and pressing issue—the labor market sucks. The product (jobs) is in high demand but supply seems to be relatively low. What exactly is going on, what does this mean for Reedies who are currently doe-eyed and preparing to enter the job market, and what should they do? 

The job market is typically reflective of the American economy at large. At the moment, overall unemployment is at approximately 4%, with unemployment for recent graduates being somewhere closer to 4.5%. This is a relatively low unemployment rate, but the economy itself is undergoing several other challenges that are making the current course of the economy  hard to understand. 

For example, President Donald Trump has been imposing numerous tariffs, which have the potential to affect the overall GDP of the nation. On some levels, this can actually be incredibly beneficial for the economy. If the tariffs are met with no response from the other nations, it can reduce imports, which can lead to residents buying more locally-produced goods and more exports of domestic products. If all else remains equal, this can lead to an increase in GDP. However, because of the off-and-on nature of the tariffs and the fact that other countries have responded with their own tariffs, it is less clear what the effects are right now. 

The GDP reports only come out once per quarter. However, the Federal Bureau of Labor Statistics (BLS) releases data that includes the labor force participation and unemployment rate every month. Last month, no data was released due to the government shutdown. It is unclear what effects events like the shutdown may have on the economy at large, since we do not have the same comprehensive data that we typically would have.

In many ways, the rate of unemployment is only one barrier of entry into the job market for recent graduates, who are usually struggling to understand how to navigate the world at large post-college. Reed Economics professor Erin Cottle Hunt, a macroeconomist, even stated that there is likely no recession occurring right now and it is unlikely that we are even entering a recession. However,  the  other unforeseen circumstances of tariffs and government shutdowns present obstacles to the job market in themselves. 

So what should Reed students do as they enter this slower job market? Michael Neubauer, an economist and Reed professor, reflects that he does not expect that the effects from the tariffs and government shutdown will have long-term consequences on the job market. He said that, while the effects now may not be ideal and prospective graduates might end up in positions that they don’t necessarily want, they typically won’t be permanent. “My advice would be… to be cognizant and try not to get stuck [in positions that aren’t what you want],” Neubauer said. 

Hunt also recommends that if prospective graduates do not want to enter the current job market, they can attend graduate school. Both Hunt and Neubauer urge students to really emphasize skills specific to Reed, such as undergraduate research opportunities, as well as writing, creativity, and critical thinking skills. The labor market may be in a uniquely difficult situation right now, but in these ways, Reedies can be prepared to face the challenges ahead.