Personal Finance
How to land a job in a ‘low firing, low hiring’ market: economist
Job seekers at a job fair hosted by the Metropolitan Washington Airports Authority to support federal workers looking for new career opportunities, at Ronald Reagan Washington National Airport in Arlington, Virginia, on April 25, 2025.
Ting Shen/Bloomberg via Getty Images
These days, job hunting may feel like something of a paradox: Even though the overall market is strong, it can be tough for jobseekers to find a new gig, according to economists.
Unemployment was relatively low in April, at 4.2%, and job growth exceeded expectations. The layoff rate is historically low, meaning those with jobs are holding onto them.
Yet it has gotten harder to find new work.
Businesses are hiring at their slowest pace since 2014. Nearly 1 in 4 jobless workers, 23.5%, are long-term unemployed — meaning they’ve been out of work for more than six months — up from 19.6% a year ago.
Cory Stahle, an economist at the Indeed Hiring Lab, called it a “low firing, low hiring trend” in a note on Friday.
There’s a “growing divide” in the labor market between those out of work and those who are employed, Stahle wrote.
The changing market conditions may feel jarring for job seekers, given that a few years ago there were record-high job openings and workers were quitting at record levels amid ample opportunity.
“This is just how it is right now: Companies are not hiring,” said Mandi Woodruff-Santos, a career coach and personal finance expert. “If they are, it’s very infrequent.”
Economic headwinds like trade wars and tumbling consumer confidence may make job-finding more difficult in coming months, economists said.
“The market can’t escape the consequences of rapidly souring business and consumer confidence forever,” Stahle wrote.
How job seekers can stand out in a tough market
Shannon Fagan | The Image Bank | Getty Images
Even in this “low firing, low hiring” market, there are ways for jobseekers to stand out, experts said.
“When the market changes, the way you search for a job may also have to be adjusted,” Jennifer Herrity, a career trends expert at Indeed, wrote in an e-mail.
1. Be ‘creative’ with networking
Job seekers will likely have to lean on personal relationships more than in the recent past, experts said.
Most jobs come through referrals or internal candidates, meaning people need to be “creative” and “strategic” about networking possibilities, Woodruff-Santos said.
“Instead of waiting for someone to pick your resume from a pile, you have to make it undeniable: Put yourself in front of them,” she said.
“Creating space for human connections and creating relationships will give you a little something extra,” she added.
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Don’t just look for obvious networking events like job fairs or expos heavily attended by other job seekers, Woodruff-Santos said.
She recommends seeking out conferences, seminars, special talks and book signings. For example, say you work in information technology and someone writes a book on corporate security in the world of artificial intelligence. Go to that author’s book signing, lecture, seminar or Q&A, Woodruff-Santos said — since the audience would likely be people in businesses with an interest in IT security.
Reconnect with former colleagues to get on a hiring manager’s radar before a role opens to the general public, Herrity said.
2. Look for internal opportunities
Workers dissatisfied with their current roles may be overlooking internal career opportunities, experts said.
“While hiring may appear to be slowing on the surface, it usually just means that opportunities have gone further underground,” Frances Weir, a principal at organizational consulting firm Korn Ferry, said in a March briefing.
However, employees should be strategic: For example, they likely shouldn’t apply to several different jobs at the company or seek to move on from a role they started only months ago, according to the firm.
3. Customize applications
“Generic resumes won’t stand out to employers in a tight market,” Herrity said. “Tailor your resume and cover letter to each role, echoing keywords from the job description and aligning your skills with the employer’s needs.”
Applicants should also highlight results — instead of responsibilities — on their resume and in interviews, she said. That shows they’re a proven performer by quantifying achievements.
4. Upskill and reskill
“Employers value candidates who use slow periods to grow,” Herrity said. “This is especially important for those facing long-term unemployment who may find themselves in a skills gap.”
She recommends finding free or low-cost courses in any relevant career areas to help fill gaps and signal initiative, motivation and self-teaching.
List recent certifications or course completions in the “education” or “skills” section of a resume, she said.
5. Be flexible
While waiting for your ideal job, success might mean being open to contract work, hybrid roles or adjacent industries, Herrity said.
“Short-term roles can be a great opportunity to grow your network and skills, then leap when the right full-time role appears,” she said.
Kate_sept2004 | E+ | Getty Images
As investors worry about future inflation amid President Donald Trump‘s tariff policy, some experts say assets like Series I bonds could help hedge against rising prices.
Currently, newly purchased I bonds pay 3.98% annual interest through October 31, which is up from the 3.11% yield offered the previous six months. Tied to inflation, the I bond rate adjusts twice yearly in part based on the consumer price index.
Certified financial planner Nathan Sebesta, owner of Access Wealth Strategies in Artesia, New Mexico, said there’s been a “noticeable uptick” in client interest for assets like I bonds and Treasury inflation-protected securities.
“While inflation has moderated, the memory of recent spikes is still fresh, and tariff talk reignites those concerns,” he said.
I bonds can be a ‘sound strategy’
Buying I bonds can be a “sound strategy” to complement a well-rounded bond portfolio of various fixed-income assets, said CFP Dean Tsantes with VLP Financial Advisors in Vienna, Virginia.
But some investors have preferred high-yield savings accounts, certificates of deposit or Treasury bills amid higher interest rates, experts say.
As of May 7, the top 1% average high-yield savings accounts currently pay 4.23%, while the best one-year CDs offer 4.78%, according to DepositAccounts. Meanwhile, Treasury bills still offer yields above 4%.
Of course, these could change, depending on future moves from the Federal Reserve.
If you’re worried about higher future inflation and considering I bonds, here are some key things to know.
How I bonds work
I bond rates combine a variable and fixed rate portion, which the Treasury adjusts every May and November.
The variable portion is based on inflation and stays the same for six months after your purchase date. By contrast, the fixed rate portion stays the same after buying. You can see the history of both parts here.
Currently, the variable portion is 2.86%, which could increase if future inflation rises. Meanwhile, the fixed portion is currently 1.10%, which could be “very attractive” for long-term investors, Ken Tumin, founder of DepositAccounts.com, recently told CNBC.
Before November 2023, I bonds hadn’t offered a fixed rate above 1% since November 2007, according to Treasury data.
The downsides of I bonds
Despite the higher fixed rate and inflation protection, there are I bond downsides to consider, experts say.
You can’t access the money for at least one year after purchase, and there’s a three-month interest penalty if you tap the funds within five years.
There are also purchase limits. You can buy I bonds online through TreasuryDirect, with a $10,000 per calendar year limit for individuals. However, there are ways to purchase more.
“There’s also the tax consequences,” Tsantes said.
I bond interest is subject to regular federal income taxes. You can defer taxes until redemption or report interest yearly.
When the Fed hiked rates in 2022 and 2023, the interest rates on most consumer loans quickly followed suit. Even though the central bank lowered its benchmark rate three times in 2024, those consumer rates are still elevated, and are mostly staying high, for now.
Five ways the Fed affects your wallet
1. Credit cards
Many credit cards have a variable rate, so there’s a direct connection to the Fed’s benchmark.
With a rate cut likely postponed until July, the average credit card annual percentage rate has stayed just over 20% this year, according to Bankrate — not far from 2024’s all-time high. Last year, banks raised credit card interest rates to record levels and some issuers said they are keeping those higher rates in place.
At the same time, “more people are carrying debt because of higher prices,” said Ted Rossman, senior industry analyst at Bankrate. Total credit card debt and average balances are also at record highs.
2. Mortgages
Prospective home buyers leave a property for sale during an Open House in a neighborhood in Clarksburg, Maryland.
Roberto Schmidt | AFP | Getty Images
Mortgage rates don’t directly track the Fed, but are largely tied to Treasury yields and the economy. As a result, uncertainty over tariffs and worries about a possible recession are dragging those rates down slightly.
The average rate for a 30-year, fixed-rate mortgage is 6.91% as of May 6, while the 15-year, fixed-rate is 6.22%, according to Mortgage News Daily.
Mortgage rates “are showing signs of life after a slow couple of years,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.
But for potential home buyers, that’s not enough of a decline to give the housing market a boost. “Many borrowers are reluctant to take on a loan at today’s rates, particularly if they currently have a loan at a significantly lower rate,” Raneri said.
3. Auto loans
Auto loan rates are tied to several factors, but the Fed is one of the most significant.
With the Fed’s benchmark holding steady, the average rate on a five-year new car loan was 7.1% in April, while the average auto loan rate for used cars is 10.9%, according to Edmunds. At the end of 2024, those rates were 6.6% and 10.8%, respectively.
With interest rates near historic highs and car prices rising — along with pressure from Trump’s 25% tariffs on imported vehicles — new-car shoppers are facing bigger monthly payments and an affordability crunch, according to Joseph Yoon, Edmunds’ consumer insights analyst.
“Consumers continue to face a challenging market, now with added uncertainty of the tariff impact on their next vehicle purchase,” Yoon said. “Prices and interest rates remain elevated, and there’s no fast or easy answer as to how the tariffs will affect inventory levels — and therefore pricing — as buyers try to make sense of an increasingly complex shopping journey.”
4. Student loans
Federal student loan rates are fixed for the life of the loan, so most borrowers are somewhat shielded from Fed moves and recent economic turmoil.
Interest rates for the upcoming school year will be based in part on the May auction of the 10-year Treasury note, and are expected to drop slightly, according to higher education expert Mark Kantrowitz. Undergraduate students who took out direct federal student loans for the 2024-25 academic year are paying 6.53%, up from 5.50% in 2023-24.
Borrowers with existing federal student debt balances won’t see their rates change, adding to the other headwinds some now face along with fewer federal loan forgiveness options.
5. Savings
While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate.
“Continued high interest rates are discouraging for those with debt but awesome for savers,” said Matt Schulz, chief credit analyst at LendingTree.
Yields for CDs and high-yield savings accounts may not be as high as they were a year ago, but the Fed’s rate cut pause has left them well above the annual rate of inflation, Schulz said. Top-yielding online savings accounts currently pay 4.5%, on average, according to Bankrate.
“With all of the uncertainty in the economy right now, it makes sense for people to act now to lock in CD rates and take advantage of current high-yield savings account returns while they still can,” Schulz said.
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