Why Young Professionals—and Grads—Are Struggling

Amid today’s tariffs and Wall Street sell-offs, job seekers have plenty of reasons to be concerned about the employment market going south over the coming months. But some of the nation’s youngest job candidates are already having a tough time finding work.

Just as college graduation season is hitting its peak, the unemployment rate for Americans age 20-24 is 8.2%, nearly two percentage points higher than it was two years ago. In contrast, the overall unemployment rate is up less than one percentage point for the same period. Having that newly-minted college degree could help, but not as much as one might expect. The unemployment rate for college grads aged 20 to 24 is 4.2%, the same rate as the entire US population.

Historically, the rate for younger people has often been higher than the overall average, but experts today are particularly concerned about the inability of many Gen Zers to find work. If companies don’t bring in young people, they could have a much smaller pool of midlevel managers in a couple of years. “This could eventually be a leadership-development issue,” says Renee Whalen, a Korn Ferry senior client partner and North America consumer market leader.

To explain why young people are experiencing more difficult job searches, experts cite an assortment of reasons. There are fewer jobs available these days for everyone, Gen Zers included. In April 2023, there were nearly 10 million openings nationwide; now there are only about 7.6 million. Experts aren’t optimistic about the near term either, as uncertainty over trade and the economy has convinced many companies to pull back on extending offers.

The fact that more older workers are putting off retirement—and will continue to as the stock market depletes retirement savings—isn’t helping, either. Some organizations are unwilling to take on new talent until these older workers retire. What’s more, to boost productivity, firms are looking to combine entry-level and early-management roles, and younger workers seem like a risky bet for that kind of role. “When you look at the earliest levels, the bar is higher,” says Lilly Tran, a senior client partner and sector leader for Korn Ferry’s Industrial, Energy and Energy Transition business.

But experts worry that GenZers themselves may be causing some of the problems. Hiring pros complain that many young professionals—even if they’re more efficient than prior generations at online or remote tasks—lack so-called soft skills, such as collaborativeness, organizational awareness, and composure. “That’s a disadvantage of working your whole career at home, versus the socialization benefits of working,” says Louis Montgomery Jr., a principal in Korn Ferry’s HR Center of Expertise.

The job-hunting motivation of some Gen Zers may also be low because firms are no longer offering the high salaries they did right after COVID-19. “Especially with tech functions, some young people won’t consider the lower rates,” says Paul Fogel, sector leader in Korn Ferry’s Professional Search, Software business. Since many are living at home with their parents, “they might not have a sense of urgency, because their costs are lower,” says Whalen.

Whatever the cause, experts say firms need to step up their recruiting of this group, if only to prepare for the long haul. During the first couple of years in a new career, young people learn the ins and outs of an organization, acquire new skills, and may have to deal with difficult situations. “They build up calluses,” Tran says. Leadership experts say it’s exactly this type of young worker who often becomes a good manager and, down the line, a good executive.

Learn more about Korn Ferry’s Talent Recruitment capabilities. 

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