Young adults often face the brunt of economic downturns, with many finding themselves disconnected from the labor force. A recent report by the Federal Reserve Bank of St. Louis highlighted that approximately 16% of 18- to 24-year-olds are neither employed nor enrolled in high school or college, earning them the moniker of “disconnected youth.” Factors such as weak job networks, college degree requirements, lack of transportation, or limited access to child care contribute to their decision to opt out of the labor force.
The term “NEETs,” which stands for “not in employment, education, or training,” is predominantly associated with young individuals who are facing economic hardships. In 2023, the unemployment rate among 16- to 24-year-olds spiked to 9.1%, indicative of the challenges faced by would-be job seekers. Furthermore, data from the International Labour Organization revealed that approximately 11.2% of young adults aged 15 to 24 in the U.S. were classified as NEETs, showcasing a concerning trend of exclusion and lack of opportunities for the youth.
Interestingly, the issue of disengagement seems to predominantly affect young men, as stated by labor economist Julia Pollak. The decline in traditional male-dominated sectors, coupled with the upward trajectory of women in education and employment, has led to a gender disparity in the NEET trend. Young men find themselves increasingly marginalized in an evolving job market, where qualifications and experience no longer guarantee job placements.
A notable group within the youth demographic comprises the “new unemployables,” highly trained individuals struggling to secure employment opportunities. Employers’ focus on talent retention and mobility has resulted in a competitive job market, with fewer openings available for well-qualified candidates. The COVID-19 pandemic further exacerbated the situation, with early 20-somethings experiencing a significant decline in labor force participation and job prospects.
As hiring projections decline and competition intensifies, young adults must adapt to the changing landscape of the job market. Strategies such as reaching out to former colleagues, enhancing online visibility, and diversifying job search criteria are essential in overcoming hurdles in securing employment. Embracing a “career lattice” approach, which prioritizes skill development over immediate job advancements, can prove beneficial in the long run for individuals facing obstacles in the job market.
The dilemma faced by young adults in the labor market underscores the need for comprehensive support systems and proactive measures to address the challenges of disengagement, unemployment, and skill mismatches. By acknowledging the unique struggles of the youth demographic and implementing targeted interventions, stakeholders can pave the way for a more inclusive and sustainable job market for future generations.