At first glance, Sean Wittmeyer appears to be a highly employable candidate. With over a decade of experience in architecture and product design, impressive coding skills, and two master’s degrees, his qualifications make him an invaluable asset in both the technology and construction industries. These sectors have significantly contributed to the economy's growth over the past 15 years. However, despite his extensive qualifications, Mr. Wittmeyer has faced significant challenges in finding work.
Since 2023, the construction industry has seen a decline in activity, primarily due to the Federal Reserve raising interest rates. Concurrently, many tech companies began layoffs, leading to a competitive job market. This economic backdrop helps explain why Mr. Wittmeyer, now 37, has been unemployed for a year and a half after losing his role in business development with a company specializing in software for real estate projects.
In his desperation to find work, he has applied for entry-level positions, only to be told he is overqualified. “I can’t even work at the little board game store down the street,” expressed Mr. Wittmeyer, highlighting the frustration many face in the current job market.
The U.S. Bureau of Labor Statistics released its August employment numbers on September 5, revealing that the overall unemployment rate remains relatively low at just over 4 percent. However, a concerning statistic emerged: the portion of unemployed individuals who have been out of work for over six months—categorized as “long-term” unemployment—has surged to its highest level in more than three years, reaching nearly 26 percent. This trend has alarmed economists and job-market analysts alike.
“Such an increase is unprecedented outside of recessions,” remarked an economist from the Federal Reserve Bank of Richmond, reflecting a steady worsening of the long-term unemployment rate. Furthermore, economists at Goldman Sachs have voiced concerns that a plunge in job openings could “lock out” those already unemployed.
What’s even more surprising is the demographic driving this rise in long-term unemployment: college-educated individuals. According to government data compiled by researchers from the University of Chicago, the fraction of long-term unemployed workers with a college degree has increased from about one-fifth a decade ago to nearly one-third today. This trend has worsened over the past year or two, even after a brief period of easing.
In an interview, Ms. Gallagher shared her struggles, stating she has accumulated $6,000 in credit card debt and is relying on supplemental nutrition assistance. In a bid to enhance her employability, she borrowed $4,000 from her brother to enroll in a course on A.I. automation and has started a business aimed at helping other firms automate functions such as sales and customer onboarding.
Several studies indicate that the demand for college-educated workers has stagnated over the last decade. Even before the advent of ChatGPT, applications like accounting software and earlier forms of artificial intelligence in sectors such as finance and merchandise planning rendered some skilled workers less relevant. Data from Indeed, the job-seeking platform, shows that the share of job advertisements requiring a college degree has decreased by approximately 6 percent since 2019.
Lawrence Katz, a labor economist at Harvard, noted, “There were significant advances in A.I. starting around 2016.” The rapid development of artificial intelligence continues to exacerbate this trend, making it increasingly difficult for highly skilled professionals to find suitable employment. Mr. Wittmeyer remarked that tasks he once handled, such as creating a tool to calculate optimal window sizes for facades, can now be accomplished by individuals with far less skill.
Charlene Chen, who previously served as corporate counsel for a medium-sized law firm in New York, faced similar challenges after being laid off in spring 2024. Many companies now employ software that automates functions traditionally handled by legal professionals, complicating her job search. After several unsuccessful attempts, she briefly took a temporary job in data-privacy compliance but quit after just one day, citing unsuitable working conditions.
Dr. Mueller, an expert on long-term unemployment, explained that college-educated workers may experience more difficulty finding jobs within a contracting industry than their non-degreed counterparts. They often possess unique skills or connections relevant only to their field, making it challenging to transition to other sectors. “You find yourself in a situation where you think, ‘I should have accepted that job earlier,’” Dr. Mueller stated, highlighting the psychological toll of prolonged job searches.
Jeremy Davis, who was laid off from his position as a senior director of engineering at Nielsen, has faced his own struggles. After turning down an early job offer in favor of another opportunity he preferred, he now finds himself nearly a year later, still searching for work after submitting over 1,200 applications and attending 17 interviews. He volunteers for extra duties in the National Guard to help cover his bills, expressing concern over the increasing number of applicants for each job, which makes it harder for candidates to stand out.
Emma Wiles, a Boston University expert on hiring algorithms, notes that A.I. and other software tools can randomize the hiring process, resulting in a deluge of similar-looking applications. This influx could disproportionately impact college-educated workers who may have previously had an advantage.
Mr. Wittmeyer has also felt the pinch of the competitive job market, having submitted over 200 applications with only seven responses. Fortunately, his wife's stable job has provided some financial relief, allowing him to explore his passion for board game design. In 2023, he and his wife successfully raised over $100,000 through crowdfunding to develop a game where players simulate building ski resorts. They are currently working on a new game centered around airport management, with plans to seek funding this fall.
“That’ll be our third game,” he said, expressing optimism about its potential success. “I think it will make some money.”
If you or someone you know is experiencing thoughts of suicide, it is crucial to seek help. You can call or text 988 to reach the National Suicide Prevention Lifeline or visit SpeakingOfSuicide.com/resources for a comprehensive list of support resources. Additionally, the American Foundation for Suicide Prevention offers grief support for those coping with loss.
