Overqualified and Undervalued: Why U.S. Professionals Are Rethinking Career Progression

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6 min read. Updated on September 25, 2025

A survey of 600 U.S. professionals reveals 70% are willing to step down in seniority and three-quarters would accept a pay cut to stay employed. Many seasoned workers are prioritizing stability and work-life balance over climbing the traditional career ladder.

Once a compliment, “overqualified” signaled that you’d built enough experience to be selective about your next move. Today, it’s become a frustrating roadblock that’s forcing seasoned professionals to rethink everything they thought they knew about career progression.

According to the Bureau of Labor Statistics, U.S. job openings have fallen sharply since the post-pandemic hiring boom. Dropping from a peak of 12.1 million in March 2022 to around 7.2 million in July 2025. That’s almost a 40% decline, meaning fewer opportunities on the market and therefore tougher competition for each role.

In September, we surveyed 600 U.S. professionals across varying seniority levels to understand how taking roles below their experience level is helping them navigate today’s turbulent job market. What we found reveals a fundamental shift in how professionals approach their careers going into 2026, and it’s not what you would expect. 

Key findings: 

  • 66% of U.S. professionals are likely to “job hug,” choosing to stay in their current role rather than risk an uncertain job market.

  • Nearly two-thirds (65%) would apply for a role below their experience level for greater job security, and over a quarter have already done so.

  • 59% have been told they were “overqualified” for a role in the past year.

  • Three-quarters (75%) would accept a pay cut to secure employment, with over half willing to sacrifice more than 11% of their salary.

  • 70% are open to stepping down in seniority, with 1 in 4 senior-level executives willing to move two or more levels lower.

Overqualified but Applying Anyway: 65% Would Take Roles Below Their Experience Level

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When asked directly, two-thirds (64.8%) of U.S. professionals said they would apply for a role below their level of experience due to job security concerns, and more than a quarter (26.2%) already have. 

This shift is leading to a knock-on effect: entry-level and mid-level roles are increasingly crowded with highly experienced applicants. In fact, 59% of professionals reported being told at least once that they were “overqualified” for a role within the past year, highlighting the reality of competing for jobs that would have been considered “too junior” in the past.

For younger professionals and graduates, this means competing not only with peers but also with seasoned professionals stepping down.

Climbing Down the Ladder: Senior Leaders Most Willing to Step Into Lower Roles

Contrary to what you might expect, it's not entry-level workers leading this charge. The data reveal that the more senior your position, the more likely you are to consider a lower position:

Mid-Level Professionals (Specialists/Managers): 65.1% would consider it

Senior-Level Professionals (Senior Managers/Leads): 62.4% would consider it

Senior Leadership (Directors and Department Heads): 68% would consider it

This isn't about career failure; it's about career intelligence. Senior professionals understand that sometimes the best path forward requires taking a strategic step back.

Work-Life Balance As Top Priority: Top Motivation Behind Stepping Down 

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When we dug into motivations, the data challenged every assumption about why successful professionals choose to “step down” in their careers. While financial desperation wasn’t the main driving force for many, economic uncertainty plays a significant role.

The top motivations reveal a more complex picture:

  1. Work-life balance (64.5%): nearly two-thirds prioritize this over status

  2. Economic necessity (42.5%): simply needing any job

  3. Career change opportunities (38%): entering new industries

  4. Less responsibility/stress (27.8%): seeking more sustainable roles

  5. Fewer senior roles available (25.2%): market reality forcing adaptation

The trend is most pronounced among senior professionals, where over two-thirds (67%) would step down specifically for better work-life balance. The message is unmistakable: today's professionals are choosing well-being over status symbols.

By seniority level, work-life balance consistently ranks as the top motivator:

  • Mid-level: 62.9%

  • Senior-level: 67%

  • Senior Leadership: 63.9%

Experience as a Barrier: 59% Report Being Told They’re “Overqualified”

So why are qualified professionals willing to aim lower? The barriers they face are both real and substantial, creating what can only be described as a perfect storm in the current job market:

  • Not enough roles available overall (38.7%)

  • Too much competition for existing roles (36.2%)

  • Being labeled "overqualified" (31.7%)

  • Age bias affects 26% of job seekers

  • Not enough roles at appropriate seniority levels (25.2%)

For senior professionals, being overqualified creates an even bigger obstacle, with 38.6% identifying it as their main barrier to job search success. Among directors and department heads, this jumps to 40.2%, meaning 2 in 5 of the most experienced professionals see their qualifications as their biggest liability.

Adapting to Survive: Workers Take Pay Cuts, Step Down, and Upskill to Stay Competitive

Faced with these challenges, professionals aren't just complaining; they're adapting in attempt to overcome these barriers in the job market:

  • 25.8% are applying for roles below their current seniority

  • 22.5% are upskilling through courses and additional training

  • 18.3% are applying for roles with lower pay, specifically

Perhaps most telling of all, 66.5% of professionals are likely to engage in "job hugging", which means that they are choosing to stay in their current roles rather than seeking new opportunities, with 27% very likely to remain put and 39.5% somewhat likely to stay. This suggests a market where even employed professionals prioritize security over career advancement.

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Sacrificing Pay for Security: 3 in 4 Workers Would Take a Pay Cut to Stay Employed

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The willingness to make financial sacrifices reveals just how challenging the current market has become. Three-quarters of professionals (75.3%) would accept a pay cut to secure employment, including 15.5% already having done so.

The breakdown shows significant flexibility across all levels:

  • 33.2% would accept a 5-10% pay cut

  • 21% would accept an 11-20% reduction

  • 9.7% would take a 21-30% cut

  • 3% would accept more than a 30% reduction

Combined, this means 54% of professionals would accept pay cuts of 11% or higher, a level of financial sacrifice that would have been unthinkable in stronger job markets.

The willingness to make financial sacrifices actually increases with seniority. Directors and department heads show the most flexibility, with 13.9% willing to accept pay cuts of 21-30% nearly double the rate of mid-level professionals at 7.47%.

Rethinking Progression: 70% Open to Stepping Down in Seniority

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When it comes to stepping down in seniority, the numbers reveal remarkable flexibility across the professional spectrum. Over two-thirds of professionals (70%) are willing to take a step down in seniority:

  • Nearly half (49.3%) would step one level below their current position

  • Over 1 in 5 (21.7%) would step two or more levels down

  • Only 19.83% would limit themselves to lateral moves

  • Just 9.17% refuse to step down at all

The willingness to make dramatic moves increases with current seniority level. The research found that one in four senior-level executives is prepared to step down two or more levels, while over half of directors and department heads (57.4%) are willing to drop one full level.

This represents a seismic shift in how career progression is viewed in the modern-day workplace, from a one-way ladder to a more flexible lattice.

Finding Stability in an Unstable Job Market 

The data paints a striking picture: career progression is no longer a straight climb up the ladder. Instead, U.S. professionals are prioritizing balance, security, and adaptability, even if it means stepping back in title or pay. For many, this shift isn’t about giving up; it’s about redefining success on their own terms.

But navigating such a competitive and uncertain market doesn’t have to be done alone. TopResume’s Job Placement Service, #GetHiredNow, is designed to help professionals cut through the noise and land the right opportunities faster. With tailored resume support, expert interview coaching, and direct access to open roles, #GetHiredNow equips workers to move from searching to hired with confidence.

In a market where even the most qualified candidates can feel undervalued, having the right tools and guidance can make all the difference, turning today’s challenges into tomorrow’s opportunities.

What we did

This survey was commissioned by TopResume and conducted via Pollfish on September 5, 2025. 


Bethany Watson is a Digital PR Manager at TopResume, where she leverages her seven years of experience in professional communications to develop partnerships with industry professionals and provide the best career resources and opportunities for job seekers.

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