Young adults in the United States are facing a challenging time in the job market, with many finding themselves disconnected and left behind. The term NEET, which stands for “not in employment, education, or training,” is often used to describe this group of individuals who are not currently working or furthering their education. According to a recent report by the Federal Reserve Bank of St. Louis, approximately 16% of 18- to 24-year-olds fall into this category, with various factors contributing to their disconnection from the labor force.
Factors Contributing to Disconnection
One of the main reasons why young adults are opting out of the job market is due to discouragement stemming from their economic circumstances. Weak job networks, the increasing demand for college degrees, lack of transportation, and limited access to childcare are all factors that play a role in keeping young adults out of the workforce. The St. Louis Fed’s report highlights these challenges that NEETs face, shedding light on the obstacles that prevent them from finding stable employment opportunities.
The unemployment rate among 16- to 24-year-olds rose to 9.1% in July, a figure that is considered typical during relatively good economic times for younger workers. Alí Bustamante, a labor economist and director of the Worker Power and Economic Security program at the Roosevelt Institute, notes that while the youth unemployment rate has improved in recent years, there is still a significant portion of young adults who are not actively participating in the labor force.
The Rise of NEETs
According to the International Labour Organization, about 11.2% of young adults ages 15 to 24 in the U.S. were classified as NEETs in 2023. This statistic highlights the growing number of young people who are being left out and left behind in terms of employment and education opportunities. Bustamante emphasizes that while these rates are somewhat expected, efforts should be made to lower them and provide support for young adults who are struggling to find their place in the job market.
One concerning trend is the increasing disengagement of young men, particularly in traditionally male-dominated industries such as construction and manufacturing. Julia Pollak, a labor economist at ZipRecruiter, explains that women’s enrollment in education and employment has been trending upwards, while young men are facing challenges in finding suitable job opportunities. This disparity between genders is a significant factor contributing to the rise of NEETs among young adults in the U.S.
The Rise of the ‘New Unemployables’
In addition to NEETs, there is a growing contingent of young adults who are well-qualified but struggling to find employment opportunities. These individuals, known as the “new unemployables,” are highly trained workers who face difficulties in securing job positions despite their qualifications. A report by Korn Ferry highlights the challenges faced by these individuals, pointing to a “perfect storm” that has created a surplus of qualified candidates competing for limited job openings.
David Ellis, senior vice president for global talent acquisition transformation at Korn Ferry, notes that employers are increasingly focusing on talent mobility and holding onto their existing workforce. This trend of “talent hoarding” has resulted in fewer job openings for well-qualified candidates, creating a challenging job market for young adults looking to enter the workforce. As a result, many young adults are experiencing prolonged periods of unemployment as they struggle to find suitable job opportunities.
Despite these challenges, there are steps that young adults can take to improve their chances of finding employment. Ellis advises reaching out to former employers or colleagues, leveraging professional networking platforms like LinkedIn, and seeking informational interviews to explore potential job leads. By actively engaging with their professional networks and staying proactive in their job search efforts, young adults can increase their visibility and improve their chances of securing employment opportunities.
Transitioning from Unemployable to Employable
Transitioning from being classified as “unemployable” to employable requires persistence, adaptability, and a proactive approach to the job search process. Ellis recommends expanding one’s professional network, showcasing industry knowledge through written content, and updating resumes with relevant keywords to attract potential employers. By taking a proactive approach to their job search and seeking opportunities to gain valuable skills and experience, young adults can position themselves for success in a competitive job market.
Overall, the challenges faced by young adults in the job market are significant, but with determination and strategic efforts, individuals can overcome these obstacles and find meaningful employment opportunities. By staying informed about industry trends, leveraging professional networks, and continuously improving their skills and qualifications, young adults can navigate the job market effectively and position themselves for success in their careers.