Things are not looking good when it comes to the job market. But if you're one of the millions of people desperately seeking work, you probably already know that. In the United States alone, 7.4 million people are unemployed. Some are graduates fresh out of college, others had work, then they didn't.
According to executive outplacement firm Challenger, Gray & Christmas, layoffs reached more than 1.1 million in 2025, while job creation failed to keep pace. Only 584,000 jobs were added. This is many people to settle for whatever they can get.
And, as some experts warn, the U.S. is in the midst of an underemployment crisis. In other words, a growing number of workers are settling for underpaid or part-time work that does not meet basic living expenses.
People who have spent years studying now find themselves taking on menial jobs, just to try and make ends meet.
“I’m also working weekends at a friend’s cafe, washing dishes, and I’m still applying and interviewing for other opportunities. But it’s the same story, no offers. At the same time, I’m debating whether to switch professions or even go back to school, even though I already have a master’s degree,” marketing and communications professional BC Dodge told Al Jazeera.
Despite making a name for himself in Washington's nonprofit sector, he now finds himself struggling to find full-time work. Dodge was laid off from his job in 2024 when the company decided to restructure. After hitting numerous brick walls, the communications expert turned to part-time work.
"The pay was well below what he had been earning before, but he accepted it anyway," reports Al Jazeera. "Some income, he reasoned, was better than none."
The Economic Policy Institute has warned that underemployment is on the rise, with 8% of the U.S. population finding themselves in this position. That figure is up 0.5% from 2024, and 1.1% from 2023.
“Some people have lost their jobs and found new ones that pay less, but others have kept their jobs, but their healthcare premiums have increased," says Jillian Hishaw, a personal bankruptcy lawyer in Charlotte, North Carolina. "Their electric bills have also gone up. Their salaries no longer cover basic living costs.”
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Hishaw adds that the current situation is causing more and more people to come knocking on her door, inquiring about personal bankruptcy filings. It's all in a desperate effort not to lose their homes to foreclosure.
“In one day last week, 85 foreclosures were filed in Mecklenburg County [where Charlotte is located]," revealed the lawyer. "Foreclosures happen daily, but 85 in a single day is unusually high. Two years ago, the daily average was 10 to 20, but now filings are approaching triple digits each day.”
Meanwhile, some job seekers say they're submitting thousands of applications, and still not getting any joy.
33-year-old James Richardson from Pittsburgh, Pennsylvania is one of them. He told the BBC that without help from his parents, he would be homeless.
Richardson says he's applied to more than 1,200 jobs since being let go from his role as an information security analyst for a government contractor in October. And that sometimes his application is rejected within 15 minutes of submission.
"It feels like there is no-one on the other side even bothering to take a look at your experiences and credentials," Richardson said.
