Welcome to Extreme Investor Network, where we provide unique insights into personal finance to help you make informed decisions and maximize your financial potential. Today, we’re diving into the challenges faced by young adults in the labor market and how you can navigate them effectively.
In a recent report by the Federal Reserve Bank of St. Louis, it was revealed that about 16% of 18- to 24-year-olds are not employed or enrolled in high school or college, earning them the title of “disconnected youth.” These individuals, also known as “NEETs” (not in employment, education, or training), often face barriers such as weak job networks, college degree requirements, lack of transportation, or limited access to childcare.
While the youth unemployment rate rose to 9.1% in July for 16- to 24-year-olds, experts like AlĂ Bustamante caution that this rate is to be expected even in relatively good economic times. Additionally, the International Labour Organization reported that about 11.2% of young adults ages 15 to 24 in the U.S. were considered as NEETs in 2023, highlighting the challenges many young people face in entering the workforce.
One concerning trend is the rise of the “new unemployables,” highly qualified young adults who struggle to find job opportunities due to a “perfect storm” of factors, according to Korn Ferry. Talent hoarding by employers and a decrease in entry-level job openings have created a competitive job market for well-qualified candidates, leading to longer stretches of unemployment.
But all hope is not lost. David Ellis from Korn Ferry advises proactive steps to enhance your job search, such as reaching out to former colleagues for job leads, making yourself visible in the industry by writing about relevant topics, and considering a “career lattice” approach that focuses on gaining valuable skills regardless of immediate promotion or raise opportunities.
At Extreme Investor Network, we believe in empowering you with the knowledge and resources to overcome obstacles in the job market and achieve financial success. Stay tuned for more expert insights and tips to help you navigate the ever-changing landscape of personal finance.