The share of unemployed Americans with no prior work experience reached 13.4% in July — its highest level since April 1988, according to the Bureau of Labor Statistics.
One possible driver is uncertainty around trade policies, which research shows can dampen hiring, according to an Aug. 12 analysis from the Federal Reserve Bank of Richmond.
July’s overall unemployment rate was 4.2%, consistent with levels since May 2024.
The challenges extend beyond Generation Z, the youngest generation currently in the workforce. Long-term unemployment — defined as being jobless for at least 27 weeks — now accounts for 25.2% of all unemployed workers, its highest share since February 2022. The long-term unemployment rate has been rising since spring 2023, an increase unprecedented outside of recessions.
The dual pressure on both the least experienced workers and the long-term unemployed point to “dumbbell-shaped” labor market concerns, according to the report.
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