Despite the sustained low unemployment rate of 4% or less over the past 30 months, not all individuals seeking employment have been successful, and some have chosen to exit the labor market altogether due to discouragement stemming from economic conditions.

A notable group in this category is referred to as "NEETs" (not in employment, education, or training), who have opted out of actively seeking jobs. Additionally, there exists a cohort of young, well-qualified candidates facing challenges in securing employment, termed the "new unemployables," as identified in a recent Korn Ferry report.

In May, the unemployment rate among 16- to 24-year-olds rose to 9%, a figure Alí Bustamante, a labor economist and director at the Roosevelt Institute's Worker Power and Economic Security program, considers typical during favorable economic periods. Bustamante noted that while the youth unemployment rate dropped below 7% in 2023, reflecting a robust labor market, the current rate of 9% aligns with expectations during economically stable times for younger workers.

Despite these statistics, a significant percentage of young adults in the U.S., approximately 11.2% aged 15 to 24 in 2023 according to the International Labour Organization, are classified as NEETs. Bustamante emphasized that this group represents a sizable portion of individuals "left out and left behind in many ways."

Julia Pollak, a labor economist at ZipRecruiter, pointed out that the NEET trend predominantly affects young men, highlighting declines in job opportunities in traditionally male-dominated sectors such as construction and manufacturing. In contrast, women have generally experienced improvements in educational attainment and employment outcomes.

Korn Ferry's report underscored another challenge known as "talent hoarding," where employers hold onto existing talent rather than creating new job openings or hiring new employees. David Ellis, senior vice president at Korn Ferry, noted that this practice contributes to a surplus of highly skilled workers struggling to find suitable employment opportunities.

Furthermore, firms have reduced hiring at entry-level positions, compounding challenges for early-career professionals, particularly those in their early 20s who endured significant labor market disruptions during the pandemic.

Despite these obstacles, Ellis offered practical advice for job seekers, stressing the importance of proactive networking. He recommended reconnecting with former colleagues or employers via platforms like LinkedIn to explore potential job leads and gain industry insights through informational interviews.

Ellis also advised job seekers to enhance their visibility by writing about relevant industry topics and updating their resumes with strategic keywords and "title tags" highlighting key skills and achievements.

Moreover, Ellis encouraged job seekers to adopt a "career lattice" approach, which involves taking roles that may not offer immediate advancement but provide opportunities to acquire valuable skills for long-term career growth.

In conclusion, despite current economic challenges faced by young job seekers and the broader workforce, Ellis remains optimistic, emphasizing that proactive and strategic approaches can still lead to meaningful career opportunities and professional development.