The young workers really aren't alright

Despite a robust overall employment landscape, new college graduates are struggling to find entry-level positions. According to a Goldman Sachs analysis, only 13% of entry-level job seekers found employment in the past six months, down from a 2022 peak of 20%. This slowdown in hiring is particularly pronounced in sectors like tech and finance, traditionally popular among new grads. As a result, the U.S. unemployment rate for 20- to 24-year-olds has climbed to 7.9%, marking the largest annual increase in 14 years, excluding the early pandemic period.

In addition to job market difficulties, younger employees are experiencing high levels of stress, loneliness, and a sense of being undervalued. The American Psychological Association's recent survey found that only 31% of workers under 35 feel they are thriving at work, compared to 36% of their older counterparts. This 5 percentage-point gap is the largest since at least 2009. Factors such as remote work and the lack of in-person mentorship have left many young workers feeling disconnected and unsupported. The absence of internships and hands-on experience during their education has further compounded their difficulties in securing and excelling in their roles.

Employers are increasingly cautious in their hiring practices, often prioritizing experience over qualifications due to economic uncertainties like inflation and high borrowing costs. This shift towards "skills-based" hiring is intended to attract a wider and more diverse pool of candidates. However, it places additional pressure on recent graduates, who may lack the necessary work experience to compete effectively.

Internships are simultaneously supposed to be a critical development opportunity for the student to gain skills the classroom isn't offering, and a market-based mechanism to secure new talent - two worthy goals which have become opposed in recent years. Yet as companies focus on efficiency and cost-cutting, internship opportunities are dwindling along with entry-level posts, making it even harder for young workers to gain a foothold in their desired industries. This environment demands that employers rethink their strategies to support the new generation of workers, ensuring they provide the necessary resources and opportunities for career development and personal growth.