My sister finished college in May 2020, expecting to dive into one of the best job markets in U.S. history, only to lose her initial job offer due to the pandemic. Suddenly, she found herself competing against millions of experienced workers in a job market that had skyrocketed to over 15% unemployment, a figure reminiscent of the Great Depression. She wasn’t alone; about 4 million other new graduates faced the same daunting job search.
Despite some graduates holding onto job offers, many saw theirs disappear overnight. The long-term effects are concerning too. Studies, like one from UC Berkeley in 2019, show that entering the workforce during a recession can lead to significantly lower earnings compared to peers who graduated in better economic times. These graduates often experience slower career progression, as they’re less likely to switch jobs, missing out on typical salary increases that come from such moves.
So, what can unemployed graduates do to navigate this tough start? Here are some strategies:
-
Move Back Home: It might not be the most exciting prospect, but living with your parents can save you money and reduce stress. They might let you live rent-free, not charge for utilities, and even lend you a car. Plus, tapping into their professional networks could be invaluable.
-
Stay on Your Parents’ Health Insurance: Health coverage is crucial, especially during a pandemic. Most family plans will cover you until you’re 26, so make sure you’re included.
-
Expand Your Professional Network: Networking is key. Most jobs aren’t advertised publicly, and many positions are filled through connections. Start building relationships within the industries you’re interested in.
-
Clarify Your Career Goals: Take the time now to explore different careers. Shadow professionals, ask questions, and use your network to gain insights into various fields.
-
Boost Your Financial Literacy: Use your free time to learn about personal finance. Understanding how to manage and grow your money can set you up for long-term success.
-
Consider Alternative Job Options: Don’t wait for your ideal job market to return. Look into part-time jobs, remote work, or even start a side hustle. These can lead to unexpected opportunities.
-
Think About Further Education or Certifications: If it aligns with your career goals, now might be a good time to pursue additional qualifications.
-
Explore Military Options: The military can offer a solid career start, with benefits like good pay, advanced training, and excellent retirement plans.
-
Volunteer: Volunteering can enrich your resume, help you build skills, and expand your network. Plus, it’s rewarding and can make a real difference in people’s lives.
Despite the challenging start, there are numerous paths forward. It’s about being proactive, creative, and open to opportunities that might initially seem unconventional.
