The reasons behind the disconnection of some young adults from the job market.

• A recent report by the St. Louis Fed states that approximately 16% of 18- to 24-year-olds are not currently enrolled in school or employed.
• These "NEETS" are largely discouraged due to their economic status and circumstances beyond their control.
• Despite being well positioned to find work, others are still struggling to get hired and are being referred to as "new unemployables."

Young adults are typically the first to experience the impact of labor market cracks.

According to a recent report by the Federal Reserve Bank of St. Louis, approximately 16% of 18- to 24-year-olds are neither employed nor enrolled in high school or college, and are therefore considered "disconnected youth."

Young job seekers are increasingly choosing not to enter the labor force due to their discouragement with their economic status. The St. Louis Fed identified several factors that may contribute to this trend, including weak job networks, college degree requirements, limited transportation, and inadequate child care access.

In July, the unemployment rate among 16- to 24-year-olds increased to 9.1%, which is considered "typical," says Alí Bustamante, a labor economist and director of the Worker Power and Economic Security program at the Roosevelt Institute, a liberal think tank in New York City.

According to Bustamante, the low youth unemployment rate of below 7% in 2023, as reported by the U.S. Bureau of Labor Statistics, was indicative of the hot labor market at that time.

During relatively good economic times for younger workers, we should expect around nine percent, he stated.

'NEETS' are being 'left out and left behind'

In the U.S., some young adults are neither employed nor acquiring new skills.

According to the International Labour Organization, in 2023, approximately 11.2% of young adults aged 15 to 24 in the U.S. were classified as NEETs.

Bustamante stated that many young people are being left out and left behind in various ways.

Although "that's usually the norm," he stated, "we should anticipate these rates to be lower."

Recession pop" is in: How music reflects economic trends "I'm searching for a man in finance" "I cry a lot but I am incredibly productive, it's a skill

According to Julia Pollak, a labor economist at ZipRecruiter, young men are increasingly disengaged.

"The NEET trend is mostly a male phenomenon," she said.

Pollak stated that the decline in opportunities for traditionally male-dominated occupations, such as construction and manufacturing, has contributed to the increase in women's enrollment, education, and employment outcomes.

According to the St. Louis Fed, nearly 70% of disconnected young adults possess only a high school diploma or less.

'New unemployables'

A recent report by Korn Ferry states that young adults who are actively searching for employment are highly qualified but frequently struggle to find jobs, resulting in a growing group of "new unemployables."

A "perfect storm" has resulted in an excess of highly skilled workers who are unable to secure employment, as stated in Korn Ferry's report.

Korn Ferry's senior vice president for global talent acquisition transformation, David Ellis, stated that employers are retaining their current talent and shifting their focus towards talent mobility.

He stated that the "talent hoarding" has resulted in a decrease in job openings, even for qualified candidates.

As firms are cutting back on new hires and limiting entry-level opportunities, they are also scaling back on new hires.

Early 20-somethings are struggling to find jobs despite the teen employment rate being the highest in over a decade, Pollak stated.

During the pandemic, the labor force participation of 20- to 24-year-olds experienced a significant decline, and they have not fully recovered since then, according to Pollak.

According to a report from the National Association of Colleges and Employers (NACE), the hiring projections for the class of 2024 decreased by 5.8% compared to the previous year.

With more candidates vying for fewer job openings, the duration of unemployment is increasing. According to Korn Ferry, the number of individuals who have been unemployed for over six months has risen by 21%.

'Unemployable' to employable

Despite the trends in the job market, "all is not lost," Ellis stated.

He advised against waiting to reach out and suggested getting back in touch with former employers or colleagues through LinkedIn or email to set up informational interviews. After the initial approach, ask for any job leads or contacts.

Rewritten sentence: To increase visibility and improve online presence, it is important to update your resume with relevant keywords and title tags, while also writing about noteworthy topics in the industry.

Instead of focusing solely on roles that offer promotions or raises, Ellis suggested considering a "career lattice" approach, which might involve accepting a lower position in order to acquire valuable skills that will benefit you in the long run.