The Schultz Family Foundation and research consultancy HarrisX released a major new study today revealing how the paths from school to work for millions of young Americans—both those with and without college degrees—are far more fractured than previously known, posing a significant threat to building the future American workforce.
Data from The Broken Marketplace: America’s School-to-Work Crisis, a sweeping survey of more than 5,700 young Americans aged 16 to 24 and the adults meant to support and guide them, shows that the difficulty young adults face in finding jobs is not a temporary blip. Rather, many of the people and institutions designed to support young adults on the journey from school to work are fundamentally out of sync with the rapidly shifting modern economy, and their challenges are poised to get worse as advances in artificial intelligence further impact the labor market.
More than four in 10 young adults surveyed said both the education system (43%) and the employment resources (45%) to which they have access are broken and are not providing them with effective guidance. They voiced worry that employment will become even more difficult as AI impacts the job market: Nearly half (46%) said they feel unprepared, or are unsure of their preparation, for jobs of the future.
“Today’s young people are eager to succeed, but the systems meant to support them are falling short,” said Vivek Varma, ceo of the Schultz Family Foundation. “This research provides key insights to design a better marketplace that is built for more informed choices, accessible resources, lifelong learning, flexible pathways and opportunity accessible to all.”
A first-of-its-kind study, the Broken Marketplace also involved detailed surveys of parents, educators and employers to reveal the ways they are misaligned with each other. For example, 77% of employers report requiring at least a year of experience from those seeking entry-level jobs, yet most do not offer internships, apprenticeships or other programs designed to provide early-career experience. More than nine in 10 (93%) parents say school is preparing their young adult for the workforce, but 52% of employers say there is a mismatch in school curricula and the skills their industry needs.
Of the approximately 30 million Americans between 18 and 24 years old, a majority are struggling to flourish in the Broken Marketplace. More than half are unemployed, churning through low-wage jobs or working in roles beneath their educational attainment, according to an analysis by the Burning Glass Institute.
“What we found is that employers, educators, and parents are caught in a finger-pointing loop in the Broken Marketplace, each expecting the other to fill the gap,” said Dritan Nesho, CEO and head researcher at HarrisX. “The result is a vacuum of relevant and reliable support for young adults, which has pushed them increasingly towards social media and away from traditional guidance systems.”
Other significant findings include:
- Social media is the new career coach: Seven in 10 young adults learn about educational (79%) or career pathways (70%) on social media, but only 16% of parents and 22% of navigators encourage social media as a tool for self-exploration.
- Young women are facing a quiet mental health crisis: Despite conventional wisdom about young men feeling “lost,” the study found young women are facing greater mental health challenges and job market anxieties. Only 50% of young women 18 to 24 years old feel prepared for the jobs of the future, compared to 61% of their male peers, while 51% of young women say they’ve experienced mental health challenges compared to 36% of men.
- AI is seen both as an essential tool and a threat to skills: 30% of young adults rely on AI to learn new skills but 60% of educators say AI is hindering skill-building for the future workforce.
- Mental health is top priority: 37% of young adults rank mental health as one of the most important factors to their success, ahead of building a career or pursuing more education. Seventy-five percent of young adults are still feeling impacts of COVID shutdowns, with 31% citing a direct impact of the pandemic on their mental health today.
“The findings illuminate how a broad swath of Generation Z remains far from tapping its full potential because of systemic inertia that leaves too many young people stranded at the moment they should be starting their careers,” said Rajiv Chandrasekaran, a Managing Director of the Schultz Family Foundation. “This Broken Marketplace poses a significant risk to building the future workforce our nation needs, particularly at a time when the country is seeking to increase domestic industrial production.”
HarrisX conducted 5,771 quantitative and qualitative interviews for the study. Quantitative online interviews were conducted with 2,820 16- to 24-year-olds, with a focus on middle- to low-income households; 992 parents of young adults; 1,267 educators, guidance counselors, community leaders and career/workforce specialists; and 607 human resources professionals and hiring managers.
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