In recent years, a disturbing trend has emerged in the labor market, impacting young adults between the ages of 18 to 24. A staggering 16% of this demographic falls into the category of “disconnected youth,” a term coined by the Federal Reserve Bank of St. Louis. These young individuals, also known as “NEETs” (not in employment, education, or training), are choosing to opt out of the workforce due to various factors. Weak job networks, stringent college degree requirements, lack of transportation, and limited access to childcare are just some of the reasons contributing to their disengagement.
The Challenges Faced by Young Workers
Despite a decrease in the overall youth unemployment rate, which dropped to 9.1% in July, the situation remains dire for many young adults in the United States. According to the International Labour Organization, approximately 11.2% of individuals aged 15 to 24 are classified as NEETs. This exclusion from the labor market not only hinders their personal growth but also poses a threat to the economy as a whole.
The Gender Disparity in Disconnected Youth
One alarming aspect of the NEET trend is its disproportionate impact on young men, as highlighted by labor economist Julia Pollak. The decline in traditional male-dominated industries, coupled with rising educational and employment opportunities for women, has led to a scenario where nearly 70% of disconnected young adults do not possess more than a high school diploma. This disparity in educational attainment further exacerbates their challenges in finding suitable employment opportunities.
Another concerning development in the labor market is the emergence of the “new unemployables,” a group of highly qualified individuals who struggle to secure job opportunities. Employers’ focus on talent retention and mobility has resulted in a dearth of openings for even well-qualified candidates. This phenomenon, combined with fewer entry-level positions and an increase in the number of long-term unemployed individuals, paints a bleak picture for young job seekers.
While the current job market may seem daunting for young adults, there are steps that individuals can take to enhance their prospects. Networking, reaching out to former contacts, and updating resumes with relevant keywords are effective strategies recommended by experts. Additionally, considering lateral career moves to acquire new skills and staying informed about industry trends can help individuals stay competitive in a challenging job market.
The issue of disconnected youth in the labor market is a multifaceted problem that requires immediate attention and comprehensive solutions. By addressing the underlying factors contributing to this trend and empowering young adults with the necessary resources and support, we can work towards creating a more inclusive and prosperous workforce for the future.