Workers are facing a tough moment in the labor market.
Employee confidence levels hit a low of 44.1% in May, according to a new report by Glassdoor, which measures the share of workers with a positive six-month business outlook. They cite reasons like economic uncertainty given potential tariffs and layoffs. Mentions of layoffs on the site surged 9%.
May job cuts by U.S.-based employers were up 47% from the same month the year before, according to outplacement firm Challenger, Gray & Christmas. Employers cut 93,816 jobs in May 2025 versus 63,816 in May 2024. The U.S. also added 139,000 jobs in May, slightly lower than April’s 147,000, according to the Bureau of Labor Statistics.
Entry-level employees are the least optimistic of any age group. Their confidence level hit a record low since 2016 in May, 43.4%. Here’s why young workers have such a negative outlook on the job market right now.
‘It’s hard for young grads to get onto the career ladder’
For jobseekers just beginning their careers, opportunities are hard to come by.
Katherine Diep, 21, just graduated from the University of California Irvine with a bachelor’s in business economics. She’s looking for work in events marketing and started applying for jobs at the beginning of the school year.
“I applied to over 200 to 300 jobs,” she says, “and have not landed any so far, unfortunately.”
Uncertainty in the economy means employers are hesitant to open up new roles. And “the low hiring environment we’re in right now means it’s hard for young grads to get onto the career ladder in the first place,” says lead economist at Glassdoor Daniel Zhao.
‘Employees have less leverage to climb’
For those entry-level workers who’ve been able to secure work, their upward trajectory is unclear.
“Because employers are not hiring as much,” says Zhao, “employees have less leverage to climb the career ladder internally, as well as fewer opportunities to find those promotions or raises by switching jobs.”
And they’re facing more competition. “Layoffs of experienced workers and managers means that there’s more bunching at the bottom of the career ladder” and more people vying for the same roles internally, he says.
Growth and career opportunities are especially key “for younger workers who are just starting out and trying to navigate their career paths,” says Zhao. Not having many concrete opportunities to map out where they could go weighs on their confidence levels.
‘Once a month or so I’ll break down’
Even as they face uncertainty and rejection, some entry-level workers are keeping a positive outlook.
Ngina Valdez, 22, graduated from Syracuse University in May where she studied communications and computer science. Like Diep, she started applying for jobs in the fall.
“I’ve applied to probably 100 journalism jobs, or jobs within communications,” plus around 60 jobs in computer science, she says.
“Once a month or so I’ll break down, just because I haven’t gotten anything,” she says. Still, she adds, “the 29 other days in the month, I am really motivated.” She’s pivoting when she needs to and tweaking her application material to make it better.
“I just updated my website, and that made me really excited to apply to more jobs.”
Are you ready to buy a house? Take Smarter by CNBC Make It’s new online course How to Buy Your First Home. Expert instructors will help you weigh the cost of renting vs. buying, financially prepare, and confidently navigate every step of the process—from mortgage basics to closing the deal. Sign up today and use coupon code EARLYBIRD for an introductory discount of 30% off $97 (+taxes and fees) through July 15, 2025.
Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn to connect with experts and peers.
