Why Young Workers Are Missing from the Job Market

Why Young Workers Are Missing from the Job MarketFeatured Image
By The Diversity Employment Team - Published on: Jul 07, 2025

The June 2025 jobs report looked solid at first glance according to CNN’s coverage. 206,000 jobs added, unemployment holding steady… But zoom in, and there’s something missing.

Young workers. A lot of them.

Behind the headlines, the labor force participation rate actually dipped to 62.6%. That drop wasn’t because of retirees alone, it was driven in large part by people under 25 stepping out of the job market. And this isn’t a one-month fluke, it’s a longer-term trend that shows something deeper is going on. Young adults and even recent college grads are struggling to find their footing.

What’s Actually Going On?

According to Phys.org, there’s a growing “mismatch” between the jobs that exist today and what younger workers are trained or positioned to do. Entry-level roles often demand experience. Internships, if they exist, are unpaid or require connections. And the jobs that are open, like in food service or retail, aren’t always aligned with the degrees young people spent years (and thousands of dollars) earning.

The numbers are sharp: employment for those aged 20 to 24 fell by 301,000 in June. That creates a huge group feeling stuck before they’ve even gotten started.

Who’s Being Left Out?

Young Black and Latino workers are especially affected, and those without advanced degrees or the ability to relocate… even more. But, even those with diplomas in hand are often shut out of white-collar roles that quietly expect applicants to have unpaid internships or inside contacts under their belt.

Add to that the fact that many youth job programs end at age 18 or 21, with little bridge to actual careers, and the gap gets wider. The solution isn’t just adding more jobs, it’s about creating more access.

The Market Has Moved… But Have We?

The labor landscape definitely isn’t what it was five years ago. Remote roles, ai automation, and major industry shifts have changed everything. Fields like tech, publishing, and media have cut staff. Meanwhile, healthcare, construction, and logistics are hiring like crazy, but young people say they don’t know how to get in.

That’s not for lack of trying. Many job seekers report applying to dozens (or hundreds) of jobs with zero response. Others are going back to school, freelancing, or leaving the workforce entirely… not because they don’t want to work, but because the barriers feel impossibly high.

The disconnect is painfully clear: the jobs are there. So are the candidates. But the bridge between them is broken.

What Employers Can Do Right Now

This isn’t just a youth issue. It’s a workforce issue. And a DEI issue.

If your hiring strategy depends on “perfect fit” candidates with polished resumes, extensive experience, and flawless references, you’re likely missing out on whole pools of motivated and ready-to-work talent.

Here’s what could help:

  • Drop the laundry list of requirements for entry-level roles.
  • Invest in paid internships and early career training programs.
  • Recruit from nontraditional pipelines, like community colleges or workforce organizations.
  • Mentor and train on the job, not only before it.

Building a reputation as one of the best companies for diversity and inclusion requires a diverse workforce and to open those doors earlier, and wider.

What Young Workers Are Actually Saying

So many candidates feel let down by the system, by their schools, and even by the job market itself. They were told a degree was the ticket. Instead, they’re wasting time on ghost jobs, inflated requirements, and an overflowing sea of applications that go nowhere.

Some are turning to gig work. Some are building side hustles. But most just want a fair shot at a career, not another rejection email (if they even get that).

Why This Matters More Than You Think

When entry-level opportunity depends on privileges like who you know, where you live, or how much you can afford to work for free… the talent pool gets much less diverse, less equitable, and less sustainable.

And then a whole generation starts to feel locked out of the workforce. The long-term consequences from this ripple through everything; family, the economy, the education system, and public trust in institutions.

Fixing this issue doesn’t just take hiring more young people. It will take rethinking how we really define talent, potential, opportunity, and the future of work itself.

The jobs are out there and the talent is, too. But building that broken bridge back? That falls on all of us.