The issue of youth unemployment is a challenging one that continues to persist, despite the overall low unemployment rate. A significant portion of young adults are categorized as NEETs – not in employment, education, or training. These individuals are often discouraged by their economic standing, leading them to opt out of the labor force altogether. As of 2023, approximately 11.2% of young adults between the ages of 15 to 24 in the U.S. fall into this category, according to the International Labour Organization. This trend is concerning, as it represents a portion of the population that is being left behind in terms of economic opportunities.
In addition to NEETs, there is also a growing contingent of “new unemployables.” These are highly qualified individuals who, despite their skills and qualifications, are struggling to find job opportunities in the current labor market. Employers are holding onto talent and focusing on talent mobility, leading to a decrease in job openings even for well-qualified candidates. The report from Korn Ferry highlights a “perfect storm” that has contributed to this phenomenon, creating challenges for those seeking to enter or progress within their chosen career paths.
Young men, in particular, are increasingly disengaged from the workforce, with the NEET trend being predominantly a male phenomenon. This disengagement can be attributed to declining opportunities in traditionally male-dominated sectors like construction and manufacturing. In contrast, women have seen positive trends in enrollment in education and employment outcomes. This gender disparity in the labor market poses a unique challenge for young men who may face limited options in terms of finding suitable employment opportunities.
The job market for young adults is competitive, with hiring projections for the class of 2024 showing a 5.8% decrease from the previous year. As more candidates vie for fewer positions, the length of unemployment periods is also increasing. Strategies for navigating the job market include reaching out to former employers or colleagues, setting up informational interviews, and updating resumes to include relevant keywords. It is essential for individuals to remain proactive in their job search efforts and consider a “career lattice” approach that prioritizes skill development over immediate promotions or raises.
Despite the challenges posed by youth unemployment and the rise of “new unemployables,” there is hope for individuals seeking to establish themselves in the labor market. By taking proactive steps to network, upskill, and adapt to the evolving demands of the job market, young adults can position themselves for success in their chosen fields. It is essential for both individuals and employers to recognize the changing landscape of the labor market and work towards creating opportunities for all individuals to thrive and contribute meaningfully to society.