If anything, you might think that after years of roaring job growth in the wake of the pandemic, the labor market would be a gold mine for anyone searching for work. But perhaps surprisingly, something strange is happening: Hiring has slowed markedly, even as unemployment remains low. Economists are using the name “Great Freeze” to describe this standoff, and for many job seekers — particularly new graduates or people seeking a way up in the world — it’s beginning to look and feel a lot like the languid wake of the Great Recession.
What’s striking is the disconnect. As late in 2025, the unemployment rate is somewhere near the 4.3%, level that would mean a tight labor market by normal standards.
But hiring rates (the percentage of the workforce that is newly hired in a given period) have sunk to levels we haven’t seen in more than a decade. The theme of this hiring challenge is echoed in a report from Bankrate, which showed that hiring has now fallen to levels last seen in 2013 — still inside the shadow cast by the Great Recession.
Entry-level hiring specifically is down — one data set showed that junior level job placements were 6 percent lower in October year-over-year.
So what’s causing this paralysis? A few things are notable here: First, employers are being extremely cautious. Many companies say they continue to bear the scars of the Great Recession, and the “Great Resignation” that followed in the pandemic’s wake has made them even more wary about hiring and turnover. Which means fewer new jobs, a more stringent vetting of candidates and much less willingness to take on new graduates.
Second, there is a shift to technology and automation that is leading to less need for new hires in certain segments. Businesses are expanding profits without expanding payrolls by investing in AI and productivity tools rather than headcount.
Third, there’s sectoral mismatch: Some fields (like health care and local government) are still hiring but many jobs traditionally filled by younger workers — retail, entry-level corporate, internships — have taken a hit.
There are real consequences for job seekers: It may take dozens or hundreds of applications before you hear anything back. Junior roles are vanishing or consolidating into more senior ones. Internships are scarce. The track you’d anticipated — graduating, taking an entry post, ascending the ladder — seems stopped or at least delayed. What used to take weeks can now take months. For older workers as well, the freeze spells fewer openings, less mobility and a tougher time changing careers or roles.
But it’s worth distinguishing this from a traditional recession. We don’t yet have mass layoffs or spikes in unemployment like in 2009. Instead, the “freeze” refers in this case to stagnation rather than collapse. (Dave Killen/The Oregonian) For people who already have jobs, stability is largely holding (for now). But if you’re just trying to enter the work force, relocate or swimming in a field of disruption, then this time feels colder than many people realize.
So if you find yourself in the freeze, what can you do? Here are some specific measures:
- Make a splash: Stand out in a market where fewer roles are being advertised. Focus on special skills, tasks, side projects, leadership roles in student clubs or organizations and measurable results.
- Go broader: Do not think there are only ‘ideal’ roles. Consider adjacent sectors, contracting or temporary work, and roles you might not have looked at before. Mobility counts now.
- Network your heart out: With most employers sitting on their hands instead of hiring like they used to, relationships matter more than ever. Be proactive, seek out alumni, acquaintances in the industry. Personal messaging can make a difference.
- Upskill strategically: With competition strong, it helps to have a differentiator. That might be a certification, a specialized skill (data and AI literacy, digital marketing) or a portfolio of work proving you can deliver.
- Set reasonable expectations: Acknowledge that your job search may take longer than you anticipate. Prepare emotionally and financially for a longer path, including side income or contract work to bridge the gap.
In other words: The “Great Freeze” is actually happening. It's not the noise of a booming job market, but the hiss of one in neutral. If you’re searching for a job — particularly your first or next job — this may feel like the toughest moment to do so that you’ve been through. That’s not to say you won’t find a meaningful gig — but landing it will take patience, strategy and a little more grit than usual.
