Millions of Americans age 20 to 24 fall into the NEET category: “Not in Employment, Education or Training.”
The COVID-19 pandemic has exposed some interesting fault-lines in the socio-economic fabric of the United States. One of these relates to young adults — those between the ages of 20 and 25. What we find paints a potentially disturbing picture of an economic and employment situation that may not be easily fixable.
A recently issued economic report published by the Center for Economic and Policy Research (CEPR) focuses on the so-called “NEET rate“– young Americans who are not employed, not in school, and not in training.
As of the First Quarter of 2021, the NEET category represented nearly 4 million Americans between the ages of 20 and 24. This eye-popping statistic goes well beyond the particular circumstances of the pandemic and may turn out to be an economically devastating trend with a myriad of adverse ripple effects related to it.
Look at any business newspaper or website these days and you’ll see reports regularly about worker shortages across many sectors — including unfilled jobs at the lower end of the pay scale which offer employment opportunities that fit well with the capabilities of lower skilled workers newly coming into the workplace.
At this moment, pretty much anyone who is willing to look around can easily find employment, schooling, or training of various kinds. But for millions of Americans in the 20-24 age cohort, the job opportunities appear to be falling on deaf ears. Bloomberg/Quint‘s reaction to the CEPT study certainly hits home:
“Inactive youth is a worrying sign for the future of the [U.S.] economy, as they don’t gain critical job skills to help realize their future earnings potential. Further, high NEET rates may foster environments that are fertile for social unrest.”
… Daily urban strife in Portland, Minneapolis and Seattle, anyone?
It doesn’t much help that younger Americans appear to be less enamored with the basic economic foundations of the country than are their older compatriots. A recent poll by Axios/Momentive has found that while nearly 60% of Americans hold positive views of capitalism, those sentiments are share by a only little more than 40% of those in the 18-24 age category.
Moreover, more than 50% of the younger group view socialism positively compared to only around 40% of all Americans that feel the same way.
The coronavirus pandemic may have laid bare these trends, but it would be foolish to think that the issues weren’t percolating well before the first U.S. businesses began to lock down in March 2020.
And more fundamentally, one could question just how much government can do to reverse the trend; perhaps the best thing to do is to stop “helping” so much … ?
More information about the CEPR report can be viewed here. What are your thoughts on this issue? Please share your views with other readers here.