In recent years, the labor market has shown signs of strain, with young adults bearing the brunt of the impact. A worrying 16% of 18- to 24-year-olds are currently not employed and not enrolled in high school or college, leading to a categorization as “disconnected youth.” These individuals, also known as NEETs, are choosing to opt out of the labor force due to a variety of reasons, including economic discouragement, limited job networks, college degree requirements, transportation issues, and lack of access to childcare.
As of July, the unemployment rate among 16- to 24-year-olds reached 9.1%, which is considered typical according to labor economist Alí Bustamante. While there was a temporary dip to below 7% in 2023, Bustamante notes that 9% unemployment is to be expected during relatively prosperous economic times for young workers. Shockingly, about 11.2% of young adults in the U.S. were classified as NEETs in 2023, indicating that a significant portion of the youth population is being left behind.
Gender Disparities in Disconnection
Interestingly, the trend of disconnected youth seems to be more prevalent among young men, particularly due to declining job opportunities in male-dominated fields like construction and manufacturing. Labor economist Julia Pollak highlights that women have been experiencing positive trends in education and employment outcomes, leading to a lower rate of disengagement among female youth. Furthermore, nearly 70% of disconnected young adults possess no more than a high school diploma, signaling a lack of higher education as a barrier to employment.
Challenges Faced by Qualified Candidates
Even among young adults actively seeking employment, there is a subset of highly qualified individuals struggling to secure job opportunities, referred to as the “new unemployables.” Organizations are increasingly holding onto existing talent and focusing on internal talent mobility, resulting in fewer job openings for external candidates. This talent hoarding has created a bottleneck in the job market, leaving many qualified candidates with limited options for career advancement.
Despite the challenges presented by the current labor market, there are proactive steps that individuals can take to improve their job prospects. Reaching out to former employers and colleagues for informational interviews, updating resumes with relevant keywords, and showcasing industry knowledge through writing can all help increase visibility to potential employers. Additionally, adopting a “career lattice” approach, which involves taking on roles for skill development rather than immediate promotion, can set individuals up for long-term success in their careers.
Overall, the issue of disconnected youth in the labor market is a complex and multifaceted problem that requires targeted solutions from both policymakers and individuals. By addressing the underlying factors contributing to disengagement among young adults and taking proactive steps to improve job readiness, we can work towards reducing the prevalence of disconnected youth and creating a more inclusive and thriving labor market for all.