Urgent Steps Needed to Secure Futures for the Class of 2025

Urgent Steps Needed to Secure Futures for the Class of 2025

This summer, the Class of 2025 should be savoring a well-deserved break before embarking on their professional journeys. However, many college and high school graduates find themselves overwhelmed with anxiety. With applications sent out to dozens, if not hundreds, of potential employers, the reality of scarce interviews and job offers continues to linger.

Currently, the national unemployment rate for young adults aged 20 to 24 stands at 6.6%. This figure represents the highest level in a decade, excluding the unusual spike caused by the pandemic. The situation worsens further for those without college degrees: High-school graduates aged 18 to 19 now face an alarmingly high unemployment rate of 14.5%.

The sharp decline in entry-level job opportunities has drawn attention to several pressing factors. Observers note that economic uncertainty, mainly driven by tariffs, and advancements in artificial intelligence may be contributing to employers hesitating to hire. Positive changes may follow, but only when clarity returns to both economic policies and technological impacts.

However, what if this situation extends beyond a temporary setback?

An extensive new study conducted by HarrisX, a research consultancy, highlights a troubling reality. The study reveals that the pathways between school and work for millions of young Americans — both with and without college degrees — are much more fractured than previously understood. This situation poses a significant threat to the development of the future workforce critical for the growth of the U.S. economy.

Over 40% of young individuals express dissatisfaction with both the education system and available employment resources, pointing out a lack of effective guidance. Their concerns revolve around the uncertainty of future job markets, particularly regarding the impact of AI. Nearly half of those surveyed feel unprepared or uncertain about their readiness for future jobs.

The study illustrates that a wide segment of Generation Z, aged 16 to 24, remains far from realizing their full potential due to systemic inertia. Unfortunately, many young individuals encounter institutions that do not adequately prepare them for the workplace.

Breaking Down Barriers for Young Adults

The existing barriers range from high schools that fail to provide exposure to various career paths and non-college training opportunities, to employers who remain hesitant to invest in skill development among new hires. This misalignment creates a broken marketplace with dire consequences for the U.S. economy.

Efforts to boost domestic production, as seen during the Trump administration, necessitate a larger pipeline of skilled workers. Yet, over 7 million job vacancies exist across the nation. For the Class of 2025 and similar job seekers, the challenge lies in bridging the gap between the skills taught in educational institutions and the demands of businesses, particularly in advanced manufacturing.

Many of these unfilled positions require more than a high school diploma or college degree. Unfortunately, too many young adults lack the necessary guidance and resources to develop the skills and credentials sought by employers.

The Role of Families and Educators

Criticism often gets directed towards young individuals for their perceived lack of initiative. However, the responsibility to support their development extends beyond the young adults themselves. Data shows that nearly 80% of parents rely on outdated personal experiences and advice from friends and family, rather than seeking guidance from external resources.

Furthermore, only 15% of educators and career navigators actively engage with employers. Even amid this, over three-quarters of employers expect candidates to have at least a year of experience for entry-level roles, yet they rarely provide internships or apprentice programs to equip newcomers with practical experience.

Investing in the Future Workforce

With three decades of experience connected to a Fortune 500 company, there is a deep understanding of the pressure to maximize profits. Yet, the long-term prosperity of businesses and the economy hinges on meaningful investments in developing new opportunities for young workers.

One innovative initiative that has garnered attention is Starbucks’ commitment to empowering baristas by offering them the chance to enroll for free at Arizona State University. As of now, over 16,000 employees have graduated with bachelor’s degrees. This program has propelled many into new roles, both within and outside the company, resulting in an average salary increase of $40,000 within 18 months.

This concerning trend among recent graduates should act as a wake-up call. The systems we once designed were tailored for a different era, one in which earning a degree and spending decades with a single employer was the norm. In today’s fast-changing workforce, such models have become obsolete.

Reimagining Education for a Dynamic Workforce

The challenge ahead centers on creating a modern marketplace that is adaptable, forward-thinking, and in tune with the realities of a global, technology-driven economy. Embracing the power of AI to help mend the damages it creates presents a viable solution. AI-driven tools and resources can play a crucial role in guiding young people toward suitable career options, along with surfacing internships, training programs, and regionally relevant opportunities.

Gaining insights into emerging opportunities and understanding the value of various career paths and credentials have become imperative. A shift in collective learning strategies is necessary, moving from a learn-then-work approach to one that embraces lifelong learning and offers hands-on skills across diverse industries. As ASU President Michael Crow eloquently states, education should focus on launching learners for life rather than simply completing them.

Only through these concerted efforts can this generation move closer to realizing the American Dream. Right now represents a pivotal moment to construct a future that fosters progress not just for the Class of 2025, but also for the generations that follow.

Sheri Kersch Schultz is co-founder and chair of the Schultz Family Foundation.