When cracks begin to show in the labor market, the impact is often felt most strongly by young adults. Recent reports from the Federal Reserve Bank of St. Louis have highlighted a concerning trend – about 16% of 18- to 24-year-olds are neither employed nor enrolled in high school or college, leading to them being classified as “disconnected youth.” This demographic, often referred to as “NEETs” (not in employment, education, or training), is choosing to opt out of the labor force due to various factors, including discouragement stemming from their economic status. This group faces challenges such as weak job networks, stringent college degree requirements, lack of transportation, and limited access to child care, all of which contribute to their disengagement from the workforce.
According to labor economist Julia Pollak of ZipRecruiter, the trend of NEETs is predominantly observed among young men. This can be attributed, in part, to the diminishing opportunities in traditionally male-dominated fields like construction and manufacturing. On the contrary, outcomes related to schooling, education, and employment have shown positive trends for women in recent years. The research from the St. Louis Fed indicates that nearly 70% of disconnected young adults have not progressed beyond a high school diploma, underscoring the association between lower educational attainment and disengagement from the labor market.
A recent report by Korn Ferry has shed light on a phenomenon termed the “new unemployables” – a group of well-qualified job seekers who are facing challenges in securing employment opportunities. Employers are increasingly hesitant to hire new talent, opting to retain their current workforce and emphasize talent mobility. This shift has resulted in a decreased number of job openings, particularly at the entry level, making it difficult for even highly skilled candidates to find suitable positions. The class of 2024 is experiencing a 5.8% decrease in hiring projections compared to the previous year, indicating a competitive job market where stretches of unemployment are becoming longer.
Despite the prevailing trends in the labor market, there are strategies that job seekers can employ to enhance their prospects. David Ellis from Korn Ferry advises individuals not to wait passively for opportunities but to actively engage with their network. Reconnecting with former employers and colleagues through platforms like LinkedIn and email can lead to informational interviews and potential job leads. Additionally, candidates are encouraged to increase their visibility by publishing relevant industry content and updating their resumes with keywords and title tags to enhance their appeal to employers. Ellis also emphasizes the importance of considering lateral career moves that may offer valuable skill-building opportunities, even if they do not entail an immediate promotion or salary increase.
The rise of disconnected youth, the challenges faced by the new unemployables, and the evolving dynamics of the job market underscore the need for proactive and adaptive strategies among young job seekers. As the labor market continues to shift, staying resilient and proactive in pursuing opportunities can be key to overcoming obstacles and securing meaningful employment in a competitive environment.
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