Heidi, this sucks. I've worked in & out of academia. I've been through similar; here's my story; I hope it helps you. A few tweets coming.
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Yes, I was told outright for some jobs that my PhD made me overqualified; but many other places saw my PhD as an asset.
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I can give you job application tips if you need it, but once I figured out how to market myself, the jobs came & I had choices.
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That's really tough thing: PhDs prepare you for academic roles, but they don't tell you how to sell your skills so employers will notice you
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I'm telling you this to partly validate what you're going through; not *just* to say, "I made it through eventually," but to recognise...
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...that it's tough, soul crushing and demoralising. This was one of the lowest points in my professional life where I felt really scared.
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If you can afford to wait, then keep applying. If you can afford to put your hat in the ring for this opportunity, even if you're not sure..
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