As the labor market cools, job scams heat up

Summary

Marketplace Morning Report: "As the labor market cools, job scams heat up"

Date: October 2, 2025
Host: Sabri Benishour (in for David Brancaccio)

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Episode Overview

This episode spotlights the rise of job scams as the U.S. labor market shows signs of cooling. As the job search process increasingly moves online and remote work becomes commonplace, scammers are ramping up efforts to target vulnerable job seekers, often using AI to craft convincing schemes. The episode also covers political developments in higher education policy and ongoing healthcare debates tied to government funding.

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Key Discussion Points and Insights

1. Higher Education Policy Moves from the Trump Administration

• Segment Begins: 01:37
• Reported by: Nancy Marshall Genzer
• The Trump administration has sent a memo—described as a "compact for academic excellence"—to top U.S. universities, pressuring them to sign in exchange for preferential treatment and funding.
  • Key demands:
    • 15% cap on international undergraduate enrollment
    • 5-year tuition freeze
    • Mandatory standardized test scores (SAT or equivalent) for applicants
    • Ban on considering race or gender in admissions or hiring
  • Universities named: Vanderbilt, MIT, Dartmouth College

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2. Healthcare Policy at the Heart of Funding Fight

• Segment Begins: 02:15
• Reported by: Kimberly Adams
• Healthcare is central to ongoing government funding negotiations.
  • Democrats' Position:
    • Push for a permanent extension of Obamacare subsidy enhancements
    • Rolling back recent changes to Medicaid enacted by the GOP
  • Expert Insight:
    • "About 24 million people use those enhancements," (Kimberly Adams, quoting Cynthia Cox at KFF, 02:54)
    • "American Families are going to start seeing health care costs skyrocket on the exchanges, and 4 million people are likely to forego coverage because they can't afford it anymore." — Kitty Richards, Groundwork Collaborative (03:27)
• Open enrollment looms with the possible expiration of enhanced premium credits, potentially raising costs for millions.

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3. Job Market Slowdown Sets the Stage for Job Scams

• Segment Begins: 05:08
• Host: Sabri Benishour
• Labor market data:
  • Unemployment rate at 4.3% (relatively low)
  • ADP reports private sector lost 32,000 jobs last month
  • Businesses becoming less interested in hiring; job searches taking longer

Interview: Kristen Schwab on the Rise of Job Scams

• Guest: Kristen Schwab, Marketplace reporter
• High Points:
  • Personal experience of scams: Kristen describes receiving frequent "recruiter" texts promising high pay for minimal work.
    • "I recently got one that said I could be paid as much as $600 an hour." — Kristen Schwab, 05:51
  • Scammers' sophisticated tactics:
    • Scams now include emails and fake listings on job boards, not just texts.
    • Use of AI for crafting convincing communications.
    • Even experts can be fooled:
      • "They had spoofed a legitimate business spoof the HR hiring manager's name, and there was an actual open position on the website for this position. That was the level of sophistication." — Eva Velasquez, Identity Theft Resource Center (relayed by Kristen Schwab, 06:41)
  • Why the increase now?
    • Pandemic changed hiring—more remote work, less in-person vetting
    • Many job seekers are inexperienced, re-entering the workforce, or newly laid off
    • Legitimate recruiters also sometimes initiate contact via text, blurring the lines
• Protecting Yourself:
  • Job seekers are advised to verify both the recruiting company and the job with the hiring company before applying—though experts acknowledge this is burdensome.
    • "Before giving out any personal information beyond your name and location" — Kristen Schwab, 07:51
    • Modern resumes should exclude super personal details like street address

Memorable Quotes

• "The Federal Trade Commission says reports of job scams tripled in the last four years." — Sabri Benishour (05:26)
• "AI has only made it easier to write convincing messages." — Kristen Schwab (06:56)

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Notable Quotes and Memorable Moments

• On scam sophistication:
  "They had spoofed a legitimate business...and there was an actual open position on the website for this position. That was the level of sophistication." — Eva Velasquez (via Kristen Schwab, 06:41)

• On job seeker's burden:
  "People are applying for dozens, maybe hundreds of jobs. But it is a good idea to take that step before giving out any personal information beyond your name and location." — Kristen Schwab (07:51)

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Important Segment Timestamps

• 01:37 — White House memo to elite universities: new higher ed policy demands
• 02:15 — Health care policy and government funding fight
• 03:27 — Kitty Richards on looming health insurance cost spikes
• 05:08 — Labor market update and rise of job scams
• 05:46 — Kristen Schwab shares personal scam experience
• 06:41 — Eva Velasquez on sophistication of scam tactics
• 07:51 — Advice to job seekers on protecting personal information

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Conclusion

The episode delivers a concise but thorough look at policy moves affecting higher ed and healthcare, then pivots to an in-depth discussion of how con artists have leveraged anxieties in a cooling labor market. Through first-hand accounts and expert advice, it highlights both the evolving tactics of scammers—and the growing onus on individual job seekers to defend against them.
For more reporting on job scams: marketplace.org

Transcript

[David Brancaccio]

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[Odoo Sponsor]

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[Sabri Benishour]

What do you get when you mix a slowdown in hiring with a little job market desperation and a dash of AI? You get job Scams from Marketplace. I'm Sabri Benishour in for David Brancaccio. Scams in a minute. First, there are reports this morning that the Trump administration is sending out a memo to elite universities and pressuring them to sign it in order for them to receive preferential treatment and funding. The agreement would affect things like admissions policies, as Marketplace's Nancy Marshall Genzer reports.

[Nancy Marshall Genzer]

The White House calls the memo a compact for academic excellence in higher education. This was first reported by the Wall Street Journal. The Journal says the compact outlines a series of demands like a 15% cap, international undergraduate student enrollment, a five year tuition freeze requiring applicants to take the SAT or another test. Schools signing the agreement would also have to commit to banning consideration of race or gender in admissions or hiring. The Journal says nine schools received the memo, including Vanderbilt, MIT and Dartmouth College. I'm Nancy Marshall Genser for Marketplace.

[Sabri Benishour]

At the center of the shutdown fight, political maneuvering aside, is ostensibly healthcare. The there have been a bunch of changes to health care policy under this administration. Even more changes are coming down the pipeline, but Democrats are arguing this moment in particular is key. Marketplace's senior Washington correspondent Kimberly Adams has more.

[Kimberly Adams]

Tens of millions of Americans buy insurance through the Affordable Care act exchanges, and they are one focus of Democrats demands. Brian Blaize is president of Paragon Health Institute.

[Odoo Sponsor]

They propose a permanent extension of Biden era Obamacare subsidy enhancements to health insurers.

[Kimberly Adams]

About 24 million people use those enhancements, according to Cynthia Cox at the health policy research nonprofit kff.

[Kitty Richards]

There had been extra financial help or enhanced premium tax credits that were lowering premiums for the last several years for people who buy their own insurance.

[Kimberly Adams]

With those tax credits set to expire, people are going to start seeing higher prices when they sign up for health insurance come open enrollment in November, says Kitty Richards at economic policy think tank Groundwork Collaborative.

[Kitty Richards]

American Families are going to start seeing health care costs skyrocket on the exchanges, and 4 million people are likely to forego coverage because they can't afford it anymore.

[Kimberly Adams]

Democrats are also calling to roll back changes to Medicaid made in the summer's big GOP reconciliation package before they'll sign up to get funding flowing again. In Washington, I'm Kimberly Adams for Marketplace.

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[Sabri Benishour]

The unemployment rate is relatively low, 4.3%. That's that's good. But the data show the labor market is slowing down. Private payroll company ADP estimates the private sector lost 32,000 jobs last month, and businesses are less and less interested in hiring new people. It is taking longer for people who are out of work to find jobs. And where there are people with anxiety and fear, there are scammers to prey on them. The Federal Trade Commission says reports of job scams tripled in the last four years. Marketplace's Kristen Schwab has done some reporting on this and joins us. Hi, Kristen.

[Kristen Schwab]

Hi, Sabri.

[Sabri Benishour]

So how did you how did you first come to this story?

[Kristen Schwab]

Well, I've been getting so many of these scam texts from so called recruiters lately. I'm sure I'm not alone. They promise minimal hours, remote work, great pay. I recently got one that said I could be paid as much as $600 an hour. And the jobs advertised usually don't require degrees and they involve administrative tasks.

[Sabri Benishour]

I have gotten many of those texts too. But these scams, per your research, they go beyond just text messages, right?

[Kristen Schwab]

Yeah. Scammers might reach out over email. They also go as far as creating fake listings on job boards. And I know that some listeners might be hearing this and thinking like Kristen, these messages are so obvious, they usually scream scam. But Eva Velasquez, CEO of the nonprofit Identity Theft Resource center, recently got this really convincing text.

[Kitty Richards]

They had spoofed a legitimate business spoof the HR hiring manager's name, and there was an actual open position on the website for this position. That was the level of sophistication.

[Kristen Schwab]

So these scammers have gotten really savvy and AI has only made it easier to write convincing messages.

[Sabri Benishour]

Yeah, that's wild. I mean, is it just AI or, you know, there's also the, the job market, it's pretty tight. Other reasons why this scam is so popular right now.

[Kristen Schwab]

So how we get jobs and work itself has changed so much since the pandemic. You know, a lot of real hiring now is done remotely. A lot of work is done remotely. And on top of that, job hunting is just not something we do every day. Hopefully that's especially true if you're young or just joining the workforce, or you're a stay at home parent rejoining the workforce, or maybe somebody who's been laid off after working the same job for a decade. I also talked to real recruiters who do actually recruit this way and reach out over text message.

[Sabri Benishour]

Wow. Well, how, how do job seekers, you know, protect themselves from, from the fake ones?

[Kristen Schwab]

So unfortunately, it's really on the job seeker experts told me before applying, you should call both the recruiting company and the company they're hiring for to verify your contact and the job opening. Personally, I think that's a really tall task. People are applying for dozens, maybe hundreds of jobs. But it is a good idea to take that step before giving out any personal information beyond your name and location. A recruiter told me, in this day and age, your resume doesn't need super personal information like a specific address.

[Sabri Benishour]

Oh, wow. We have been speaking with my colleague, marketplace reporter Kristen Schwab. You can hear more of her reporting on job search related [e-mail] Kristen, so good to talk to you.

[Kristen Schwab]

Good to talk to you, too.

[Sabri Benishour]

In New York, I'm Sabri Benishore with the Marketplace Morning Report from apm, American Public Media.

[David Brancaccio]

Hey, it's David Brancaccio. Marketplace's fall fundraiser ends on Friday, and we're making good progress toward our goal to hear from 2,000 marketplace investors. This is a different kind of goal, one that centers on your participation, whether it's your first ever donation, if you're chipping in again, or if you're starting or increasing a monthly gift. I'm telling you, it all matters more than ever now. So stand up and be counted as a Marketplace investor. And if you can't do it by Friday, go to marketplace.org donate.