The unemployment rate has been relatively low, sitting at or below 4% for an extended period. However, this does not mean that everyone who desires a job has been able to secure one. A segment of individuals known as “NEETs” (not in employment, education, or training) have opted out of the labor force due to discouragement stemming from their economic situation. Among this group are well-qualified but struggling younger candidates, termed as the “new unemployables” in a recent report by Korn Ferry.
According to Alí Bustamante, a labor economist and director of the Worker Power and Economic Security program at the Roosevelt Institute, the unemployment rate among 16- to 24-year-olds rose to 9% in May. While this figure is considered typical, it still signifies challenges faced by younger workers in finding suitable positions. Despite a slight decrease in the youth unemployment rate to less than 7% in 2023, Bustamante notes that this decline was a result of exceptional economic conditions at the time. In contrast, approximately 11.2% of young adults aged 15 to 24 in the U.S. were classified as NEETs in 2023, as reported by the International Labour Organization. This alarming statistic indicates a significant portion of young individuals being left behind in terms of employment and skill development.
Julia Pollak, a labor economist at ZipRecruiter, highlights the increasing disengagement among young men, attributing it to the decline in opportunities within traditionally male-dominated fields such as construction and manufacturing. In contrast, women have witnessed an upward trend in their participation in education and employment. The phenomenon of NEETs appears to be more prevalent among males, reflecting shifting dynamics in the job market and educational landscape.
Korn Ferry’s report sheds light on a concerning trend referred to as the “new unemployables,” comprising highly skilled workers who face challenges in securing suitable employment opportunities. David Ellis, senior vice president for global talent acquisition transformation at Korn Ferry, notes that employers are increasingly focused on talent retention rather than new hires, leading to a scarcity of job openings for qualified candidates. This trend, combined with a reduction in entry-level positions, has created a competitive environment for job seekers, particularly early 20-somethings who have experienced setbacks in the aftermath of the pandemic.
Despite the challenges posed by the current job market, there are strategies that individuals can employ to enhance their employment prospects. Ellis recommends reaching out to former employers or colleagues through professional networking platforms like LinkedIn to explore potential job opportunities. Setting up informational interviews and staying updated on industry trends can also help candidates stand out in a crowded job market. Moreover, updating resumes with relevant keywords and highlighting key skills can increase visibility and attract potential employers.
The evolving landscape of unemployment presents both challenges and opportunities for job seekers, particularly young adults and highly skilled workers. By adopting proactive strategies and staying abreast of market trends, individuals can navigate the job market effectively and position themselves for career growth in the long run.