The labor market is showing cracks, with young adults being the first to feel the impact. A significant percentage of 18- to 24-year-olds are not employed and not enrolled in high school or college, leading to the term “disconnected youth” or “NEETs” (not in employment, education, or training). Reasons for this disengagement from the labor force include economic struggles, weak job networks, college degree requirements, lack of transportation, and limited access to child care. In July, the unemployment rate for 16- to 24-year-olds rose to 9.1%, which is considered typical during good economic times.
In 2023, about 11.2% of young adults ages 15 to 24 in the U.S. were considered as NEETs, representing about 1 in 10 young people who are being left out and left behind. This trend is more prevalent among young men, particularly due to declining opportunities in traditionally male-dominated occupations like construction and manufacturing. Almost 70% of disconnected young adults have no more than a high school diploma, indicating a lack of formal education and training among this demographic. Despite these challenges, there is an expectation for these rates to be lower, signaling a need for intervention and support for these individuals.
Some young adults who are actively seeking employment are struggling to find suitable positions, leading to the concept of “new unemployables” identified in a report by Korn Ferry. Employers are holding onto their current talent and focusing on talent mobility, resulting in fewer job opportunities for highly qualified candidates. This talent hoarding has limited job openings even for well-qualified individuals, exacerbating the challenges faced by job seekers. Hiring projections for the class of 2024 have also fallen, further contributing to the competitive job market and stretching periods of unemployment.
Despite the challenging job market conditions, there are strategies that individuals can employ to improve their job prospects. Initiatives like reaching out to former employers or colleagues, setting up informational interviews, and updating resumes with relevant keywords and title tags can enhance visibility and increase chances of landing a job. It is also advisable to be open to roles that may not offer immediate promotions or raises, as they can still contribute valuable skills and experience. By adopting a proactive approach and seeking opportunities for growth and skill development, individuals can transition from being perceived as unemployable to becoming attractive candidates in the job market.
