‘Low Hire, Low Fire’ Economy Locking Young Adults Out of Entry-Level Jobs

Researchers at the Federal Reserve Bank of St. Louis found that employment opportunities for adults aged 18 to 24 deteriorated significantly between April 2023 and December 2025, with their employment rate falling by more than 2 percentage points, a decline that emerged primarily as higher unemployment rather than workers leaving the labor force entirely, indicating young people were still searching but finding fewer opportunities. By contrast, workers aged 25 to 64 saw no comparable slide. The researchers attribute the trend to a “low-hire, low-fire” economy in which companies retain existing employees but pull back on new hiring, with AI playing a contributing but targeted role. Higher Ed Dive reports that remote work also appears to be a factor, with younger workers faring worse in jobs that can be done remotely, as employers are less willing to bring on inexperienced workers when proximity-based training and mentorship aren’t feasible.