The cooling U.S. job market is hitting young professionals the hardest, as entry-level wages lose steam amid shrinking hiring opportunities and reduced job mobility.
According to new data from the JPMorgan Chase Institute, annual income growth for workers aged 25 to 29 slowed to 5.2% in September; one of the weakest gains since the Great Recession.
Economists say this marks a sharp reversal from the rapid wage gains seen during the post-pandemic recovery, when companies were aggressively competing for talent.
With fewer job openings now available, younger workers are finding it tougher to negotiate better pay or switch jobs for higher salaries; a strategy that once drove fast income growth for early-career employees.
Adding to the pressure is the rise of artificial intelligence, which is reshaping the labor market faster than expected.
Many entry-level roles in customer service, data entry, and even creative industries are being automated or consolidated, reducing the number of stepping-stone positions available to new graduates.
“The entry-level market has always been a gateway to growth,” said a labor market analyst. “But now, slower hiring and automation are closing that gate for many.”
The implications could stretch far beyond paychecks. With slower wage growth and fewer opportunities for quick career advancement, younger Americans may have to wait longer to meet key milestones such as buying a home or starting a family.
While wage growth across the broader workforce has also cooled, the effect is particularly pronounced among those just starting out; a sign that the next generation is entering a job market far more challenging, competitive, and unequal than before.
