Workforce

While the labor market is holding steady, it’s not a good time to be looking for a job—particularly if you’re young (The Wall Street Journal, subscription).

What’s going on: “Recent college and high school graduates are facing an employment crisis. The overall national unemployment rate remains around 4%, but for new college graduates looking for work, it is much higher: 6.6% over the past 12 months ending in May.”

• That’s the highest level for this age group in a decade, not counting the COVID-19 unemployment increase.
• By contrast, jobseekers aged 35 to 44 with bachelor’s degrees had a 2.2% unemployment rate over the past year.

What’s different now: “Young graduates typically face a higher unemployment rate than their counterparts who have been in the workforce longer, but the gap is growing wider between older workers and the young.”

Why it’s happening: There’s a general slowdown in hiring right now.

• While it hasn’t had much of an effect on people who already have jobs (because layoffs have stayed low), it has hit those with the least experience.
• “With employers turning more cautious on hires, they are less inclined to gamble on workers with thinner résumés or skill sets.”

Worse for high school grads: “High school graduates ages 18 to 19 with no college [experience] averaged an unemployment rate of 14.5% over the past 12 months. That is up from 13.3% over the prior 12-month period.”

Manufacturing’s offer: With 381,000 job openings today, and as many as 3.8 million new employees needed by 2033, the manufacturing industry has many opportunities both for new college graduates and those without a college degree.

• The Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate, is creating solutions for employers seeking workers with much-needed skills and offers programs and resources for students, veterans and other job seekers looking to enter the industry. Learn more here.