The current job market presents a paradoxical situation where the unemployment rate has remained below 4% for 30 months, yet there are still individuals who struggle to find employment. The term “NEETs,” which stands for “not in employment, education, or training,” is used to describe those who have opted out of the labor force due to discouragement about their economic status. While some NEETs are well-qualified individuals, there is a significant number of young candidates who are finding it difficult to secure job opportunities. This demographic has been labeled as the “new unemployables,” according to a recent report by Korn Ferry.
The Youth Unemployment Challenge
Among 16- to 24-year-olds, the unemployment rate saw a rise to 9% in May, which, according to labor economist Alí Bustamante, is considered typical for this age group. While the youth unemployment rate had dropped below 7% in 2023 during a strong labor market period, the current rate of 9% reflects the challenges faced by younger workers in finding stable employment. A concerning statistic is that approximately 11.2% of young adults aged 15 to 24 in the U.S. were classified as NEETs in 2023, indicating a significant portion of the youth population is neither working nor actively pursuing education or training opportunities.
Julia Pollak, a labor economist at ZipRecruiter, highlights a concerning trend where the NEET phenomenon is predominantly affecting young men. This disparity can be attributed to the decline in job opportunities in traditionally male-dominated fields like construction and manufacturing. In contrast, women have shown positive trends in schooling enrollment, educational achievements, and employment outcomes. The imbalance in gender representation among NEETs underscores the need for targeted interventions to support disengaged young men in the workforce.
Korn Ferry’s report identifies a “perfect storm” contributing to the rise of the “new unemployables,” referring to highly trained individuals who are struggling to secure suitable job placements. Due to a phenomenon known as “talent hoarding,” employers are retaining existing talent within their organizations and focusing on internal talent mobility rather than hiring new candidates. This has resulted in a shortage of job openings for well-qualified individuals, creating a competitive job market landscape. Additionally, the scaling back of new hires by firms has limited entry-level opportunities for young professionals, leading to prolonged stretches of joblessness.
Navigating the Job Market Challenges
Despite the challenges in the job market, there are proactive steps that individuals can take to improve their employment prospects. David Ellis, senior vice president at Korn Ferry, advises individuals to reconnect with former colleagues and employers through professional networking platforms like LinkedIn. Setting up informational interviews and seeking job leads from contacts can help expand job search opportunities. Additionally, enhancing visibility in the industry by writing about relevant topics and updating resumes with strategic keywords and title tags can attract the attention of potential employers.
Rather than solely focusing on roles that offer immediate advancement or salary increases, Ellis suggests adopting a “career lattice” approach. This strategy involves taking positions that may not come with immediate promotions but offer opportunities to gain valuable skills and experiences that can lead to long-term career growth. By being open to diverse career paths and skill development opportunities, individuals can position themselves for success in a competitive job market landscape.
The challenges posed by youth unemployment and the rise of NEETs highlight the need for proactive measures to address the evolving job market dynamics. By taking strategic steps to enhance visibility, expand networks, and pursue skill development opportunities, individuals can navigate the complexities of the current job market and position themselves for long-term career success.