In today’s labor market, young adults are facing significant challenges, with approximately 16% of 18- to 24-year-olds not employed or enrolled in high school or college. This demographic is often referred to as “disconnected youth” or “NEETs.” Many young individuals are opting out of the labor force due to discouragement stemming from their economic situation. Factors such as weak job networks, college degree requirements, lack of transportation, and limited access to child care are contributing to this trend.
In July, the unemployment rate among 16- to 24-year-olds rose to 9.1%, a figure deemed “typical” by labor economist Alí Bustamante. While the overall youth unemployment rate has decreased in recent years, it is still hovering around 7%, indicating that challenges persist for younger workers. In 2023, approximately 11.2% of young adults in the U.S. were classified as NEETs, highlighting the extent of the issue.
Labor economist Julia Pollak notes that the NEET trend is primarily affecting young men, partly due to diminishing opportunities in traditionally male-dominated fields like construction and manufacturing. In contrast, women’s participation in education and employment has been on an upward trajectory. The majority of disconnected young adults lack education beyond high school, further complicating their job prospects.
A new phenomenon known as the “new unemployables” is emerging, comprising highly qualified job seekers who struggle to find employment opportunities. Employers are increasingly focused on talent mobility and holding onto existing employees, leading to fewer job openings for qualified candidates. As a result, young adults, particularly those in their early 20s, are finding it challenging to secure meaningful employment opportunities.
Despite the challenging job market landscape, experts advise young adults to take proactive steps in their job search. Building professional networks, reaching out to former colleagues, and engaging in informational interviews can help in uncovering job leads. Additionally, staying up-to-date on industry trends, updating resumes with relevant keywords, and exploring career opportunities that offer skill development are crucial steps in navigating the current job market.
The current labor market presents numerous challenges for young adults, with rising unemployment rates, gender disparities in disengagement, and the emergence of the “new unemployables.” By taking proactive steps, staying resilient, and seeking out opportunities for skill development, young individuals can navigate the job market’s complexities and enhance their prospects for future career success.