Why Millions of Gen Zers Are Neither Working Nor Studying

About 16% of young people ages 18 to 24 are “disconnected youth” or NEETs, which stands for “not in employment, education, or training,” according to the Federal Reserve Bank of St. Louis. The causes of this disconnection involve complex factors ranging from caregiving responsibilities to economic barriers and lack of opportunities.

The NEET phenomenon carries significant implications for workforce development, economic productivity, and social stability both domestically and globally. Understanding the underlying causes is crucial for addressing what has become a defining challenge for today’s young adults.

Why Are Young Adults Disconnected?

Using numbers from the St. Louis Fed and reviewing data from the U.S. Census as of 2023, we estimate the number of American NEETs to be just under 5 million.

Experts from the St. Louis Fed and other organizations have offered several reasons why a young adult might find themselves counted among this group:

It’s worth noting that snide swipes about “lazy” young people or universities not delivering for their students are contradicted by the data. Nearly 70% of disconnected young adults have no more than a high school diploma. And a 2025 Federal Reserve Bank of New York analysis found the average annual income premium for those who graduated from college was nearing record highs.

The Challenges Facing NEETs

The NEET phenomenon reflects the interconnected challenges facing young adults in today’s economy. Where you live matters a lot—rural young adults struggle the most, with disconnection rates hitting 20.2% in rural areas, compared with 17.1% in big cities and 15.6% in metro areas. Small towns often lack job opportunities, and getting to work can be nearly impossible without reliable transportation.

Money creates real barriers to getting started. Many young people can’t afford the basics needed for most jobs—a reliable car, professional clothes, or certification programs—while entry-level wages haven’t kept up with rising costs. The St. Louis Fed found that more than half of disconnected young adults come from families with incomes of less than $50,000 per year.

The numbers reveal troubling racial gaps. Young Black adults face the steepest odds across the board, but especially in rural parts of the country. Nearly 30% of young Black adults in rural areas are disconnected, compared to 18.5% of young white adults. These disparities point to persistent barriers like hiring discrimination, weaker professional networks, and underfunded schools in many communities of color.

“Opportunities for young people are highly unequal, with many young women, young people with limited financial means or from any minority background still struggling,” Gilbert F. Houngbo, the International Labor Organization’s director general, said in a 2024 report on the matter.

In addition, the job market is changing for everyone, including the young. Even when young adults do find work, they’re increasingly stuck in unstable arrangements—temp jobs, gig work, or part-time positions without benefits. This kind of precarious employment can trap young workers in cycles where they’re constantly at risk of becoming disconnected again.

Meanwhile, automation and AI are being blamed for wiping out many traditional entry-level jobs while creating demand for skills that require expensive training, which many young people can’t access.

The Bottom Line

There are several reasons why a young person might not be working or in school, including unsuccessful job hunts or caregiving responsibilities. Additionally, various socioeconomic factors, including family income and educational attainment, commonly affect NEETs.

Whatever the causes, the NEET issue is a problem for every age group. “None of us can look forward to a stable future when millions of young people around the world do not have decent work and, as a result, are feeling insecure and unable to build a better life for themselves and their families,” Houngbo said.