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Young Workers Face Tough Job Market
11 Jul
Summary
- Youth employment rate fell over 2 percentage points since April 2023.
- AI job skill demand accounts for one-third of youth unemployment rise.
- Older workers aged 25-64 saw stable employment outcomes.
The employment landscape for young adults aged 18 to 24 has significantly worsened, according to recent research. Between April 2023, a peak period for the U.S. labor market, and December 2025, the employment rate for this age group dropped by more than 2 percentage points. This decrease is largely attributed to increased unemployment, indicating that young job seekers are actively looking but finding fewer available positions.
In contrast, workers aged 25 to 64 experienced stable employment outcomes during the same period. Researchers note this trend aligns with a 'low-hire, low-fire' economy where companies are hesitant to hire new staff. The growing demand for artificial intelligence skills plays a crucial role, contributing to approximately one-third of the rise in youth unemployment by increasing the hiring bar for entry-level roles. Fields like software engineering and customer service, highly exposed to AI, have seen employment declines for early-career workers since late 2022.
