The unemployment rate has seen a significant decrease, with 30 months at or below 4%, which is close to a record low. However, not everyone who desires a job has one. A group known as “NEETs,” or individuals not in employment, education, or training, are choosing to remain out of the labor force due to discouragement from their economic situation. Among those affected are well-qualified young candidates who are finding it challenging to secure positions, leading to the emergence of what is being termed as “new unemployables.”
According to Alí Bustamante, a labor economist and director at the Roosevelt Institute, the unemployment rate for 16- to 24-year-olds reached 9% in May, which is considered normal during good economic times for younger workers. Despite the youth unemployment rate dipping below 7% in 2023, Bustamante asserts that 9% should be the expected rate for this demographic during favorable economic conditions. The International Labour Organization reported that around 11.2% of young adults aged 15 to 24 in the U.S. were categorized as NEETs in 2023, indicating that a significant portion of young people are being left behind due to lack of opportunities.
Julia Pollak, a labor economist at ZipRecruiter, notes that the trend of NEETs is predominantly observed among young men. This phenomenon is attributed to decreasing prospects in traditionally male-dominated fields like construction and manufacturing. In contrast, women have experienced improvements in educational and employment outcomes over time. The situation has been exacerbated by what Korn Ferry terms as a “perfect storm,” resulting in an oversupply of highly skilled workers who struggle to secure employment opportunities.
According to David Ellis, a senior vice president at Korn Ferry, the current scenario has led to employers retaining existing talent and focusing more on talent mobility rather than hiring new staff. This talent retention approach has resulted in fewer job openings for qualified candidates, especially at the entry level. While there has been a rise in teen employment rates, individuals in their early 20s are finding it challenging to access job opportunities, particularly following the impact of the pandemic.
Despite the concerning trends in the job market, there are strategies individuals can employ to enhance their job search prospects. Ellis recommends reaching out to former employers or colleagues through platforms like LinkedIn to explore potential job leads. It is also advisable to stay visible within the industry by writing about relevant topics and updating resumes with essential keywords and “title tags” that emphasize critical skills and achievements. Rather than solely focusing on roles that offer promotions or salary increases, Ellis suggests pursuing a “career lattice” approach, where individuals take on positions that may not immediately advance their career but provide valuable skills for future opportunities.
The challenges faced by young adults and highly qualified workers in today’s job market underscore the need for strategic and proactive measures to navigate through periods of unemployment and limited job opportunities. By adopting a flexible approach and leveraging networking and skill-building opportunities, individuals can enhance their employability and position themselves for success in a competitive labor market.