This summer, students graduating in 2025 are supposed to feel a sense of relief before diving into their careers. Yet many high school and college graduates are feeling quite the opposite—anxiety seems to be rampant. They’ve applied to numerous jobs, sometimes even hundreds, but actual interviews and job offers are becoming tough to come by.
The national unemployment rate for young adults aged 20 to 24 stands at 6.6%. This marks the highest level in ten years—excluding the pandemic spike. For those who haven’t completed a college degree, the situation is even bleaker; the unemployment rate for high school graduates aged 18 to 19 is at 14.5%.
The reduced availability of entry-level roles has largely been attributed to employers facing economic uncertainty, influenced by tariffs and the belief that advances in artificial intelligence might lessen the need for human labor. Still, many hope that as conditions stabilize, things will improve.
But what if this isn’t just a temporary setback?
Recent research indicates that the pathways from education to employment for countless young Americans—whether or not they’ve attended college—are in dire need of repair. This breakdown threatens the growth of the U.S. economy and the development of a future workforce.
Approximately 40% of young individuals feel that their education systems and job resources are severely lacking, offering little effective guidance. They fear that hiring will become an even greater challenge as AI continues to evolve. Nearly half of them feel unprepared for the careers that lie ahead.
The findings show that many in Generation Z, ages 16 to 24, are not fully leveraging their potential, stuck in a system that doesn’t support them well as they begin to embark on their careers.
Institutions at every stage—particularly high schools—often fail to showcase a variety of career paths or training options beyond traditional university routes. This disconnect could have serious repercussions for the future of the U.S. economy, particularly concerning the previous administration’s push for more domestic industrial production.
According to the U.S. Chamber of Commerce, while there are millions of job openings, the class of 2025—and many other job seekers—are struggling. Schools and universities often don’t equip students with the skills employers actually require, especially in fields like manufacturing.
Many of these entry-level positions will demand more than just a high school or college degree in the future. Yet, guidance and resources necessary for acquiring needed skills remain elusive.
Adults frequently criticize young people for not being proactive on their career paths. But it’s important to remember that everyone involved has a role to play.
Almost 80% of parents rely on their own experiences and advice from friends and family rather than external resources to guide their children. Additionally, a significant portion of educators and career navigators are not working alongside employers.
Many employers require a year of experience for entry-level positions, yet internships or apprenticeships that could provide such experience are often scarce.
Having been involved with Fortune 500 companies for three decades, I understand the immense pressure to drive revenue. However, if companies don’t invest in creating new opportunities for workers, the long-term sustainability of our businesses and economy is at stake.
One positive example comes from Starbucks, which has offered all its baristas a chance to advance their careers through free online courses at Arizona State University. So far, over 16,000 have graduated, with many experiencing wage increases of around $40,000 within 18 months post-graduation.
These disconcerting narratives should propel us out of complacency. Many systems we rely on were designed for a different time. The old blueprint of securing a degree and staying with one employer for decades doesn’t apply to our modern, dynamic workforce.
The current task is to construct a better market, one that resonates with the needs of our rapidly evolving economy. We need to harness the potential of AI to improve what it impacts. Tools powered by technology can help young individuals navigate their options more effectively. New internships, training programs, and regionally relevant opportunities should guide students toward appropriate pathways.
We need insights into emerging opportunities, the importance of diverse qualifications, and how labor markets are shifting. Embracing fundamental changes in how we educate—focusing on lifelong learning and practical skills—is essential. As the president of ASU, Michael Crowe, aptly states, education should not just aim to “finish” students; it should prepare learners for life.
Only then can this generation truly seize the chances to forge a new American dream. This is a pivotal moment to layout a future that benefits not just the class of 2025, but those who follow as well.
