The unemployment rate in the United States has been relatively low, with 30 months at or below 4%. However, there is a population of individuals known as NEETs, which stands for “not in employment, education, or training,” who are opting out of the labor force due to discouragement from their economic circumstances. These NEET individuals are facing challenges in finding jobs and are being left behind in the competitive job market. This group includes both individuals who are discouraged by their economic standing and well-qualified young candidates struggling to secure employment opportunities.
Among 16- to 24-year-olds, the unemployment rate rose to 9% in May. While this rate has since decreased, it is still a concerning issue as it indicates a lack of job opportunities for young adults. According to the International Labour Organization, about 11.2% of young adults in the U.S. were considered as NEETs in 2023. This highlights the challenges faced by young people in finding meaningful employment and acquiring new skills. Despite the improving job market, there are still significant barriers preventing young adults from participating in the workforce.
There is a notable gender disparity in the NEET trend, with young men being disproportionately affected. This disparity is attributed to the decline in opportunities in traditionally male-dominated fields such as construction and manufacturing. On the other hand, women have seen improvements in enrollment in education and employment outcomes. The uneven distribution of opportunities based on gender highlights the systemic challenges that young adults face in accessing the job market.
A “perfect storm” in the job market has led to the emergence of a group known as “new unemployables,” highly trained individuals who struggle to find job opportunities. Employers are holding onto their existing talent and focusing on talent mobility, which limits the opportunities for well-qualified candidates. This has resulted in a scarcity of job openings for early 20-somethings, leading to prolonged stretches of unemployment. The hiring projections for the class of 2024 have also decreased, indicating a challenging job market for young adults.
Despite the challenges in the job market, there are strategies that young adults can employ to enhance their job prospects. It is essential to stay proactive and reach out to former employers or colleagues for job leads and contacts. Networking through platforms like LinkedIn and setting up informational interviews can help in exploring job opportunities. Additionally, updating resumes with relevant keywords and highlighting important skills can make individuals more visible to potential employers. Instead of limiting oneself to specific roles, pursuing a “career lattice” approach by gaining diverse skills and experiences can lead to long-term career growth and success.
Overall, the growing issue of unemployment among young adults presents significant challenges in accessing meaningful employment opportunities. By understanding the factors contributing to this issue and adopting proactive strategies, young adults can navigate the job market more effectively and enhance their career prospects in the long run.