The unemployment rate has remained below 4% for a record-breaking 30 months, but not everyone looking for a job has been able to secure employment. There is a group known as NEETs, which stands for “not in employment, education, or training,” who are choosing to opt out of the labor force due to discouragement from their economic situation. This group includes individuals who are well-qualified but are still struggling to find employment opportunities.
The Plight of Young Adults
According to a recent report, the unemployment rate for 16- to 24-year-olds rose to 9% in May, which is considered typical by labor economists. While the youth unemployment rate dipped below 7% in 2023, this was largely due to the booming labor market at the time. However, in 2023, approximately 11.2% of young adults in the U.S. were classified as NEETs, indicating that a significant portion of the youth population is being left behind in terms of economic opportunities.
The Gender Disparity
There is a notable trend of young men disengaging from the workforce, with the NEET phenomenon primarily affecting males. This can be attributed to a decline in opportunities in traditionally male-dominated fields like construction and manufacturing, while women’s educational and employment outcomes have been on the rise. This gender disparity is a concerning issue that needs to be addressed in order to ensure equal access to economic opportunities for all young adults.
A “perfect storm” of factors has led to the emergence of a group known as the “new unemployables,” highly skilled workers who are struggling to find suitable job opportunities. Talent hoarding by employers, coupled with a decrease in new hires and limited entry-level positions, has created a challenging job market for well-qualified candidates. This has resulted in longer stretches of unemployment and increased competition for limited job openings.
Despite the challenges in the job market, there are steps that individuals can take to improve their employment prospects. Reaching out to former colleagues and employers, networking through platforms like LinkedIn, and setting up informational interviews can help individuals access job leads and connections. It is also important to make oneself more visible in the industry by writing about relevant topics and updating resumes with keywords and title tags. Additionally, embracing a “career lattice” approach, which involves taking on roles that may not offer immediate promotions or raises but provide valuable skills for future advancement, can be a strategic career move.
The landscape of youth unemployment is evolving, with challenges such as NEETs, gender disparities, and the rise of the new unemployables shaping the job market for young adults. By taking proactive steps to enhance their employability and networking, individuals can navigate these challenges and improve their chances of securing meaningful employment opportunities.