New Report Offers Valuable Insights into Gen Z's Employment Struggles

The latest McKinsey American Opportunity Survey reveals a troubling trend among America's young workers, ages 18-24: their unemployment share is more than 2.5 times higher than the general population and nearly 50% of this group cited a lack of skills and experience as their main barriers to employment. (Note: Survey respondents self-reported their employment status.)

The McKinsey American Opportunity Survey also found that Gen Z workers feel pessimistic about the economy and their long-term prospects. Nearly half (45%) are concerned about job stability and feel less financially secure, while almost one-third (31%) doubt they will ever retire. Also, 70% believe they will never own a home.

Still, this cohort (ages 18-24) is highly motivated to pursue a range of educational pathways to get jobs, according to the survey. In fact, they are 1.5 times more likely than individuals between the ages of 25-54 to seek out education and training opportunities, motivated by the possibility of increasing their incomes. Many, however, do not know what types of education or training to pursue or how to get support.

A lack of relevant experience is the biggest barrier to finding a new job for youth respondents across gender, and women cited it more frequently than men. Young women also disproportionately named other barriers, such as not knowing where to look for jobs, the need to manage childcare, and physical health barriers. Young men noted accessibility barriers more often than young women, including issues with transportation and a lack of financial resources, internet access and housing options. Both young men and women attributed mental health and access to financial support as barriers more frequently than other age groups with older Americans pointing to lack of time as a barrier to training.

"The biggest roadblock for today's youth in landing good jobs isn't a lack of ambition—it's the lack of skills, credentials and experience needed to make them appealing to employers," said Steve Preston, president and CEO, of Goodwill Industries International. "To give people a fair shot at the American Dream, there is a critical need to provide skills training and career navigation, especially to young people who will help shape and power the future workforce."

The McKinsey American Opportunity Survey also revealed growing unemployment shares for people who have been justice-impacted, actually two times more likely to be unemployed than the general population, due to accessibility barriers including technology, transportation and stable housing.

Justice-involved individuals tend to disproportionately face accessibility barriers. Compared to the general population, justice-impacted respondents cited these barriers:

• Access to internet ~2.7x more than others
• Access to transportation ~2.3x more than others
• Access to housing 2x more than others
• Access to childcare ~1.6x more than others
• Access to financial support ~1.2x more than others

"Investing in overlooked job seekers, such as young people without college degrees and justice-impacted individuals, will help close talent gaps across many of our most vital sectors and help businesses to better thrive and prosper over the long term," added Preston.

The need to provide career coaching and navigation to young people at the beginning of their career journeys is key to breaking the low-wage work cycle. According to the Brookings Institute, over the course of a 10-year span, only 43% of workers in low-wage occupations left their jobs, and their chances of advancing decreased each year. By their tenth year, the chance of leaving low-wage work is only one percent.

Goodwill, the largest nonprofit provider of job training and career placement services in North America, is uniquely positioned to help close the opportunity gap for all workers. The Goodwill Opportunity Accelerator® is a proven workforce development framework that equips job seekers with the resources needed to pursue and advance their careers by connecting individuals to career pathways, job training, certifications, apprenticeships and mentorships for continued career growth.

The Opportunity Accelerator takes a comprehensive, whole-person approach to workforce development, consisting of a set of standardized actions that local Goodwill organizations conduct with and on behalf of job seekers: assessing their needs and interests, developing a personalized plan, addressing barriers to training and advancement, equipping them with appropriate skills, launching them in the job-search process, connecting them with potential employers and evaluating the success of their search and performance in their new job.

Each of the Goodwill network's 153 local nonprofit organizations provide job training and support services based on community needs. Every single day, Goodwill helps more than 350 people find jobs.

Goodwill would like to thank those whose input has helped to inform Closing the Opportunity Gap, including McKinsey & Company, who provided an analytical fact base on the McKinsey American Opportunity Survey.

ABOUT GOODWILL INDUSTRIES INTERNATIONAL
Goodwill works to enhance the dignity and quality of life of individuals and families by strengthening communities, building bridges to opportunity and helping people in need reach their potential through learning and the Power of Work^®.

For more than 120 years, Goodwill organizations across North America have helped people find jobs, support their families and feel the satisfaction that comes from working. There are 153 local Goodwill organizations that assist people through a variety of employment placement services, job training programs and other community-based services. Thousands of people receive employment and other human services through Goodwill, and, in 2023, the organization helped more than 1.7 million people build skills, access resources and advance their careers.

Goodwill sells donated items in more than 3,300 outlets and retail stores in the U.S. and Canada as well as through online marketplaces. The revenue creates training programs and job placements to help people find work or advance their careers.

For more information or to find a Goodwill location near you, visit goodwill.org. Follow us on X/Twitter: @GoodwillIntl and Facebook, Instagram, TikTok and YouTube: @GoodwillIntl.

About McKinsey
McKinsey is a global management consulting firm committed to helping organizations accelerate sustainable and inclusive growth. We work with clients across the private, public, and social sectors to solve complex problems and create positive change for all their stakeholders. We combine bold strategies and transformative technologies to help organizations innovate more sustainably, achieve lasting gains in performance, and build workforces that will thrive for this generation and the next.

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SOURCE Goodwill Industries International