In today’s economy, despite the unemployment rate remaining at a near record low, there are still individuals who are not in employment, education, or training, known as NEETs. This group of individuals is opting out of the labor force, often due to discouragement from their economic standing. Young adults, especially those between the ages of 16 to 24, are facing challenges in finding suitable job opportunities. According to a report by Korn Ferry, the unemployment rate among 16- to 24-year-olds rose to 9% in May, reflecting the struggles of younger candidates in the job market. This trend of being NEETs is considered as a norm, despite the expectations of lower rates during economic growth periods.
Another concerning trend identified in the job market is the emergence of “new unemployables,” highly trained workers who are struggling to secure job opportunities. The report by Korn Ferry highlights a “perfect storm” that is limiting job prospects for qualified candidates. Employers are holding onto their current talent pool and focusing on talent mobility, resulting in fewer job openings for well-qualified individuals. Meanwhile, firms are scaling back on new hires, further limiting entry-level opportunities. The implications of this trend are evident as early 20-somethings face challenges in finding suitable employment. The hiring projections for the class of 2024 have also decreased, indicating a competitive job market with longer stretches of unemployment.
The trend of being NEETs is particularly prominent among young men, as highlighted by labor economist Julia Pollak. This phenomenon can be attributed to declining opportunities in traditionally male-dominated occupations, such as construction and manufacturing. In contrast, women have seen improvements in enrollment in schooling, education outcomes, and employment outcomes. The disparity between male and female engagement in the workforce demonstrates the challenges faced by young men in finding meaningful employment opportunities.
Despite the challenges posed by the current job market, there are steps that individuals can take to improve their prospects. David Ellis, senior vice president at Korn Ferry, advises reaching out to former employers or colleagues through platforms like LinkedIn to explore potential job leads. Additionally, updating resumes with relevant keywords and title tags can enhance visibility to potential employers. Ellis also recommends considering a “career lattice” approach, which involves taking on lower positions to acquire valuable skills that can lead to future opportunities. By proactively engaging with the job market and staying informed about industry trends, individuals can position themselves for success in a competitive job market.
The rising challenge of unemployment among young adults presents significant obstacles in their career paths. The prevalence of NEETs and new unemployables underscores the need for proactive measures to navigate the competitive job market. By staying informed, networking effectively, and being open to diverse career opportunities, young adults can overcome the challenges of unemployment and chart a path towards a successful career.
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