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Even though the unemployment rate has remained at or below 4% for 30 consecutive months (near an all-time high), not everyone who wants a job can find one. Not everyone wants a job.
Some people known as “NEETs” choose to drop out of the labor market, mainly because they are frustrated with their economic status.
Others are well-qualified but often younger candidates struggling to find positions, including a group of “newly unemployed,” according to a recent report Korn Ferry.
Alí Bustamante, a labor economist and director of the Worker Power and Economic Security Program at the Roosevelt Institute, said the unemployment rate among 16- to 24-year-olds rose to 9% in May, which was “typical.” A liberal think tank based in New York City.
Bustamante said that although the youth unemployment rate fell below 7% in 2023, according to the U.S. Bureau of Labor Statistics, such a low level “is emblematic of how hot the labor market was at that time.”
“Nine per cent is essentially what we would expect for young workers in relatively good economic times,” he added.
‘NEETS’ feel ‘abandoned’
Still, some young people in America are neither working nor learning new skills.
According to the International Labor Organization, by 2023, approximately 11.2% of young people aged 15 to 24 in the United States will identify as NEET.
In other words, about 1 in 10 young people “are excluded in many ways,” Bustamante said.
He said that while “this is generally the norm, we should expect these rates to be lower.”
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Julia Pollak, labor economist at ZipRecruiter, said young people, in particular, are becoming less engaged.
“The NEET trend is mainly a male phenomenon,” she said.
Pollack explained that this is partly due to declining opportunities in traditionally male occupations such as construction and manufacturing, while “women’s enrollment, educational outcomes and employment outcomes are mostly on the rise.”
“Talent hoarding” leads to “new unemployed”
According to the Korn Ferry report, a “perfect storm” has also created a large number of “newly unemployed” workers who are poorly trained and have difficulty finding job opportunities.
“Employers are retaining the talent they have and are increasingly focused on talent mobility,” said David Ellis, Korn Ferry’s senior vice president of global talent acquisition transformation.
This “talent hoarding” has led to fewer job openings, even for qualified candidates, he said.
At the same time, the company is downsizing its new hires, It also limits entry-level opportunities.
While teen employment is at its highest level in more than a decade, people in their early 20s are struggling to find work, Pollack said. “The labor force participation rate among 20- to 24-year-olds dropped significantly during the pandemic, and they have been falling behind ever since.”
Overall, hiring forecasts for the Class of 2024 are down 5.8% from last year. Report from the National Association of Colleges and Employersor NACE.
The duration of unemployment increases as more candidates compete for fewer and fewer positions. Korn Ferry found that the number of people who have been unemployed for more than six months has increased by 21%.
“Unemployed” to available for employment
Despite these trends in the job market, “all is not lost,” Ellis said.
“Don’t wait to reach out,” he advises. Reconnect with former employers or colleagues via LinkedIn or email and schedule informational interviews. After the initial contact, ask for any job leads or contact information.
Also, make yourself more visible by writing about noteworthy topics and content in your industry Update your resume to include keywords and so-called “title tags,” which highlight important elements at the top.
Finally, Ellis also recommends not limiting yourself to positions that include promotions or raises. Instead, aim for a “career grid,” which may require taking a lower position to gain skills that will pay dividends later.
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