Is the American Dream on Hold?

Newsweek

09-05-2025

The recent jobs report showed a gain of 177,000 jobs in April and an unchanged unemployment rate of 4.2 percent—somewhat alleviating the economy's current turmoil. This growth exceeds the average of the previous three months, according to the U.S. Bureau of Labor Statistics (BLS). Additionally, stocks rose on Friday as Wall Street digested the positive jobs report, lifting the S&P 500 to its longest winning streak in just over two decades. However, behind these positive numbers lies a more personal, human-centric story that is not being told.
One of those stories relates to my deep worry. Most days, I sit glued to my laptop, applying for countless jobs and awaiting emails. Often, I receive a message, likely from AI, stating I was not selected for a role I applied to just a day earlier, wishing me luck. It's impressive how swiftly AI can assess a person's entire nuanced career in hours. Other emails I receive report a competitive pool of over 500 applications, but mention they are moving on to other candidates instead of me. How can they evaluate so many resumes, so quickly? Then there's the typical response most mid-career professionals receive: "You're overqualified." And when you finally get an interview, it feels like being on an episode of Survivor; only the strongest will survive the madness of unpaid tests and endless interviews. With over 15 years of experience in journalism, marketing, and communications, along with a master's degree, I've struggled to find work for a year.
Stock market numbers are displayed on the floor of the New York Stock Exchange during morning trading on May 7, 2025, in New York City.
Stock market numbers are displayed on the floor of the New York Stock Exchange during morning trading on May 7, 2025, in New York City.
Michael M. Santiago/Getty Images
Am I alone on this island, crying out for help, or are others nearby? I soon discovered entire Subreddits, Discord and Slack groups, TikTok hashtags, and news articles filled with job-market tales almost identical to mine. The stories came from people of all ages and backgrounds. Recently, there has been much discussion about how AI impacts the lack of hiring, how overqualified professionals have to rearrange their lives, and how rising income inequality is affecting the future of work.
No Need for Humans Anymore
Recently, billionaire Bill Gates joked on Jimmy Fallon that we may not need humans for most tasks, which feels insensitive to say as many face unemployment and don't have billions in the bank like he does. Gates claimed that coders, energy experts, and biologists are the only professions safe from AI in the next decade. The future of human resources is also not very human, as it heavily invests in AI generative tools to filter and rank candidates through black-box algorithms, complicating the hiring process. Scammers exploit AI to create fake jobs or resumes, leading HR to face serious structural problems and increasing layoffs. It is still hard to understand by whose logic we should be ranked and filtered. I couldn't have imagined this scenario 10 years ago when getting a job was much easier.
The White-Collar Recession
You're taught to study and work hard for a comfortable, successful life, but today we face a white-collar recession. In January 2025, BLS reported the lowest rate of job openings in professional services since 2013—a 20 percent year-over-year drop. The hiring rate for those earning over $96,000 has also dropped to its lowest since 2014. Scrolling through LinkedIn is disheartening. It's filled with posts from highly qualified people desperate for work, including a woman facing home loss and a well-known journalist still seeking work after 18 months unemployed. Most applications yield similar responses: "You're overqualified." The situation feels inescapable—a no-win scenario.
The Rise of Income Inequality
Income inequality in the U.S. has risen significantly. The Congressional Budget Office found that the top 10 percent control nearly 60 percent of the nation's wealth, while the bottom half holds just 6 percent. According to a recent study by the National Bureau of Economic Research, the secular rise in top incomes accounts for 13 percent of the decline in the employment share of small firms since 1980. A rising top income share increases the costs for bank-dependent firms, creating fewer jobs. Therefore, it's not necessarily true that billionaires provide more jobs or help the economy, as seen by Amazon, Meta, and Tesla layoffs, among others.
Things don't look very bright for the job market, perhaps the top 10 percent and the government could start training us for free in the jobs of the future, or maybe Andrew Yang can finally implement his Universal Basic Income (UBI) initiative. We're going to need some security from somewhere in this turbulent economy.
Adriana Gallegos began her career as a TV reporter in Texas, later covering issues affecting youth, poverty, and education for various media outlets. After her reporting days, she transitioned to work in communication, government affairs, event management, film, digital marketing, and public affairs for numerous multinational companies and organizations.
The views expressed in this article are the writer's own.