As the labor market experiences cracks and challenges, it is often young adults who feel the impact first. According to a recent report from the Federal Reserve Bank of St. Louis, approximately 16% of 18- to 24-year-olds are neither employed nor enrolled in high school or college, earning them the label of “disconnected youth.” These individuals, often referred to as “NEETs,” which stands for “not in employment, education, or training,” are choosing to opt out of the workforce 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, as found by the St. Louis Fed.
Julia Pollak, a labor economist at ZipRecruiter, highlights the fact that young men, in particular, are becoming increasingly disengaged, leading to a predominant male trend in the NEET category. This shift can be attributed, in part, to dwindling opportunities in traditionally male-dominated fields like construction and manufacturing. On the other hand, women’s enrollment in education and subsequent employment outcomes have been on the rise. The data shows a clear divide in the challenges faced by young adults based on their gender, with men experiencing higher rates of disengagement.
A concerning trend identified by Korn Ferry is the emergence of a group labeled as “new unemployables.” This category comprises highly skilled individuals who are struggling to secure job opportunities due to various market dynamics. According to David Ellis, senior vice president at Korn Ferry, employers are prioritizing talent retention and internal mobility, leading to a scarcity of job openings for external candidates. The report emphasizes the challenges faced by well-qualified young adults in finding suitable positions, further exacerbating the issue of unemployment among this demographic.
Despite the bleak outlook presented by various reports and data, there are strategies that young adults can employ to enhance their job prospects. It is essential to stay proactive and maintain communication with past colleagues and employers through platforms like LinkedIn. Setting up informational interviews and seeking job leads from within your network can help in uncovering hidden opportunities. Additionally, showcasing industry knowledge through writing and updating resumes with relevant keywords can boost visibility to potential employers. It is crucial to adopt a flexible mindset and consider lateral moves that contribute to skill development for future career growth.
The current landscape of the labor market presents significant challenges for young adults, particularly those classified as disconnected youth or new unemployables. By understanding the root causes of these issues and implementing strategic approaches to job searching and skill development, individuals can navigate these obstacles and work towards securing meaningful employment opportunities. It is essential for both policymakers and employers to address the systemic factors contributing to youth unemployment and strive towards creating a more inclusive and accessible labor market for all individuals.