More than 4 million young adults are jobless, with colleges facing blame for failing to deliver real opportunities

There’s been a significant shift in Gen Z’s career trajectory, with a quarter of young people now categorized as NEETs—“not in education, employment, or training.” While some are stepping back to care for family members, many others are locked out of an increasingly competitive job market, where traditional office jobs feel just out of reach.

In the U.S., this means an estimated 4.3 million young people are neither in school nor working. Across the U.K., the situation is worsening, with the number of NEETs rising by over 100,000 in just one year. British podcaster Peter Hitchens referred to this as a “catastrophe” and placed the blame squarely on the education system.

“In many cases, young people have been sent off to universities for worthless degrees, which have produced nothing for them at all,” said Hitchens last week. “And they would be much better off if they apprenticed to plumbers or electricians; they would be able to look forward to a much more abundant and satisfying life.”

With millions of young adults feeling increasingly left behind, experts like Jeff Bulanda, Vice President at Jobs for the Future, say there needs to be a “wake-up call.” Bulanda suggests that both educational institutions and workplaces need to do more to guide this generation.

Higher education’s role in the rising number of NEETs

While certain career paths, like those in healthcare, offer more direct routes to employment, millions of students are graduating with degrees that don’t guarantee jobs. For instance, in the U.S., over a million new jobs are expected in the healthcare sector in the next decade, including roles like home health aides and registered nurses. However, many graduates are left underemployed, struggling to make ends meet.

Even though a college degree can offer significant long-term returns—an average of 681% over 40 years—many young people are left burdened with growing student loan debt while facing an uncertain job market. Bulanda emphasizes that too much focus has been placed on four-year degrees as the only reliable path. Skilled trades should be given equal weight in career discussions.

“It’s critical that young people are empowered to be informed consumers about their education, equipped with the information they need to weigh the cost, quality, and long-term value of every path available to them,” Bulanda says.

Lewis Maleh, CEO of Bentley Lewis, a staffing and recruitment agency, agrees with Bulanda and stresses that universities should do more to communicate career placement opportunities and offer better support for students, particularly with nonacademic issues such as mental health and resilience.

“Universities aren’t deliberately setting students up to fail, but the system is failing to deliver on its implicit promise,” Maleh tells Fortune. “The current data challenges the traditional assumption that higher education automatically leads to economic security.”

What’s causing the NEET crisis—and how can we fix it?

The financial strain caused by rising living costs—from rent and groceries to textbooks—has left many Gen Zers unable to take advantage of opportunities. Some have had to decline job offers simply because they can’t afford the commute or work attire. On top of that, the rapid changes in the job market, driven in part by artificial intelligence, make it harder for many to find stability.

The United Nations has warned that “too many young people” still face significant skills gaps, and motivating millions of young people to return to school or the workforce will not be easy.

Experts like Maleh believe that accessible entry points—such as apprenticeships and internships—are key to engaging young people, especially those who are disengaged. There also needs to be better communication between industries and educational institutions.

Above all, Bulanda insists that more personalized career guidance is crucial. “When you don’t know what options exist, no one is helping you connect the dots, and the next step feels risky or out of reach—it’s no surprise that so many young people pause,” he says. “The question isn’t why they disconnect; it’s why we haven’t done a better job of recognizing that the old ways aren’t working anymore, and young people need more options and better support to meet them where they are.”

Sources  - 

https://measureofamerica.org/tags/disconnected-youth/

https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/bulletins/youngpeoplenotineducationemploymentortrainingneet/february2025