In recent years, the unemployment rate in the US has remained relatively low, hovering at or below 4% for the past 30 months. However, this seemingly positive statistic does not tell the whole story. There is a growing population of individuals known as NEETs – those not in employment, education, or training. These individuals, often discouraged by their economic circumstances, are choosing to opt out of the labor force altogether. According to a recent report by Korn Ferry, there is a concerning trend emerging among young, well-qualified candidates who are struggling to secure meaningful employment opportunities. This group, dubbed the “new unemployables,” represents a segment of the population that is being left behind in the current job market.
One of the most vulnerable groups in terms of unemployment is individuals aged 16 to 24. Despite the overall low unemployment rate, this age group experienced a 9% unemployment rate in May. While this figure is considered typical for this demographic, it highlights the challenges that young adults face in finding stable employment. In 2023, approximately 11.2% of young adults in the US fell under the NEET category, according to the International Labour Organization. This trend is particularly pronounced among young men, who are increasingly disengaged from the workforce. Factors such as declining opportunities in traditionally male-dominated industries and women’s rising educational and employment outcomes contribute to this disparity.
The job market dynamics have also played a significant role in exacerbating the issue of youth unemployment. Employers are becoming more focused on talent retention rather than hiring new candidates, leading to a phenomenon known as “talent hoarding.” This approach has resulted in fewer job openings for well-qualified individuals, creating a competitive environment where candidates struggle to secure employment opportunities. Additionally, hiring projections for the class of 2024 have decreased by 5.8% compared to the previous year, further intensifying the competition for limited job positions. As a result, the number of individuals experiencing long-term unemployment has increased by 21%, signaling a challenging job market for many individuals.
Despite the prevailing challenges in the job market, there are steps that individuals can take to improve their chances of securing employment. Networking plays a crucial role in connecting individuals with potential job opportunities. Reaching out to former employers or colleagues through platforms like LinkedIn and email can lead to informational interviews and job leads. Additionally, enhancing visibility by writing about industry-specific topics and updating resumes with relevant keywords can make individuals more attractive to potential employers. It is also important for individuals to consider alternative career paths and opportunities that may not necessarily involve immediate promotions or raises. Adopting a “career lattice” approach, which focuses on gaining valuable skills and experience, can pave the way for long-term career success.
The landscape of youth unemployment in the US is evolving, presenting challenges and opportunities for individuals seeking to enter or re-enter the workforce. By understanding the factors contributing to unemployment among young adults, addressing the changing dynamics of the job market, and taking proactive steps to enhance their employability, individuals can overcome the obstacles and achieve their career goals.