Colton Masi checked off every box in his quest to land a good job in the computer science industry after college.
The 23-year-old attended Drexel University, a Philadelphia school distinguished by its focus on real-life job experience. And he majored in software engineering, a discipline he had been hearing his whole life was synonymous with stable, high-paying work. It was all part of his plan to avoid the fate that befell so many millennials after the Great Recession.
“When I was 13, I was online all the time.” Colton told Today, Explained co-host Noel King. “I was on tumblr, and I was seeing a lot of thes currently graduating young adults kind of talk about their struggles with the job market and getting themselves established…I was always like, ‘Oh no, I need to do something thatS going to get me a job.'”
So Masi took the advice offered by everyone from Joe Biden to Chris Bosh to Ashton Kutcher in that era: he learned to code.
But Masi graduated from Drexel this past June into a historically bad job market for entry-level computer science positions. since then he’s applied to about 100 jobs – none have even offered an interview.
“Its like, you do everything right. You follow the instructions,but the field changes,” Colton said. “There’s nothing you can do about it. It’s just: keep it pushing until you find something.”
Masi’s situation is increasingly common for recent college graduates and others seeking to breakAnd then you add in AI as a layer on top of all of this, and the calculation is totally different. I talked to James Hornick, who’s the chief growth officer at the Chicago-based recruiting firm Hirewell. And he told me that clients have all but stopped requesting entry-level staff.Those young grads were once in high demand, but their work is now a home run for AI.
We’re always trying to figure out what is data and what is anecdata. You can hear one story about someone who applied for three or four jobs a day for a month and got nothing, and that will be the thing that sticks in your brain forever.
But the unemployment rate in the US right now is around 4.2 percentwhich is super low, right? is there a tension between the one extreme story and the actual trend?
Behind that number, I think you’ll see a couple of other trends that suggest that the picture is a little bit more complicated.
Number one is sort of labor data on the time it takes to find a job. And there are two things that my colleagues and I have been looking at. One is for unemployed Americans, it now takes them on average 24 weeks to find a job after losing one, and that’s nearly a month longer than a year prior.
And the number of long-term unemployed Americans – that’s people who are unemployed for at least 27 weeks – that figure is now 1.8 million people a year. Prior, it was like 1.5 [million]. So that’s an uptick too.
The other factor here is you think about which sectors are hiring at the moment, [and] much of the jobs growth is coming from state and local government, or sectors like health care, social assistance, leisure and hospitality, construction.A white-collar project manager probably wouldn’t be qualified for a role in health care or might not be looking for a local government job in a different state. So I think it’s also a question of matching opportunity to skillset and how that goes.“`html
Nearshoring: A Growing Trend for US Businesses
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US companies are increasingly turning to nearshoring – outsourcing business processes to companies in nearby countries – as a strategic alternative to customary offshoring. This shift is driven by a combination of factors, including geopolitical concerns, supply chain resilience, and the desire for improved communication and cultural alignment. Nearshoring offers a compelling balance between cost savings and operational efficiency, making it a key consideration for businesses looking to optimize their operations.
What is Nearshoring?
Nearshoring involves relocating business operations to a geographically close country, typically sharing a time zone or having similar cultural values.For US companies,this often means partnering with businesses in Mexico,Canada,and countries in Central and South America. this differs from offshoring, which typically involves outsourcing to countries further away, like India or the Philippines.
Key Differences: Nearshoring vs. Offshoring
| Feature | Nearshoring | Offshoring |
|---|---|---|
| Geographic Proximity | Close (e.g., Mexico, Canada) | Distant (e.g., India, Philippines) |
| Time Zone | Similar or overlapping | Significant difference |
| Cultural Alignment | Higher | Lower |
| Communication | Easier | More challenging |
| Travel Costs | Lower | Higher |
| Cost Savings | Moderate | Potentially higher |
Why the Rise in Nearshoring?
Several factors are contributing to the growing popularity of nearshoring:
- Supply Chain Resilience: The COVID-19 pandemic and subsequent global disruptions highlighted the vulnerabilities of relying on distant supply chains. Reuters reports a significant increase in companies seeking to shorten and diversify their supply chains.
- Geopolitical Stability: Concerns about political instability and trade tensions in certain regions are prompting companies to seek more secure locations for their operations.
- Reduced Communication Barriers: Shared languages, similar cultures, and overlapping time zones facilitate smoother communication and collaboration.
- Lower Travel Costs & Easier Site Visits: Proximity allows for easier and more frequent in-person meetings and oversight.
- Competitive Labor Costs: While not as low as some offshoring destinations, nearshore countries offer competitive labor costs compared to the US. Statista data shows significant cost differences in manufacturing labor.
Industries Embracing Nearshoring
Nearshoring is gaining traction across a wide range of industries, including:
- Manufacturing: Relocating production facilities closer to the US market.
- IT & Software Growth: Accessing skilled tech talent at competitive rates.
- Customer Service: Providing bilingual support and improved customer experience.
- Business Process Outsourcing (BPO): Outsourcing administrative tasks, finance, and accounting.
- Healthcare: Utilizing nearshore resources for medical coding,data analysis,and telehealth support.
Mexico as a Leading Nearshore Destination
mexico has emerged as a particularly attractive nearshore location due to its proximity to the US, free trade agreements (like the USMCA), and a skilled workforce. The country benefits from a growing manufacturing sector and a strong base of bilingual professionals. The Ohio consulting firm CEO mentioned in initial discussions highlighted Mexico’s increasing investment in infrastructure to support nearshoring initiatives.
Challenges of Nearshoring
While nearshoring offers numerous benefits, it’s crucial to be aware of potential challenges:
- cultural Differences: Even with closer cultural alignment, differences can still exist and require careful management.
- Infrastructure Limitations: Some nearshore locations may have less developed