More than five million young workers in the U.S. are unemployed — neither working nor in school. The unemployment rate among Americans 25 and under is more than twice as high as the unemployment rate for the general population, and many of those who have found work are underemployed — working part time, in dead end jobs.
An uncounted number of Millennials have given up looking for work, drifting back to school after graduation to postpone the need to look for a job or living with parents in an extended childhood. Without counting these people, the government still reckons that 15% of Americans 18 to 25 are unemployed. Many have children to support and college loans to pay off, as well as dreams for the future that are being delayed.
News organizations like NPR and the New York Times are describing the situation as a crisis. Not only does this unemployment and under-employment cost taxpayers some $25 billion a year in uncollected taxes and federal safety net spending, but it is wasting a generation of talent and intelligence.
Why? One reason is that experienced workers were driven to take entry-level jobs during the recession. Fewer entry-level jobs exist and there is more competition for them than there was in the past.
Another is what industrial companies call “the skills gap” — many of the good entry-level jobs require specialized skills and training that recent grads don’t have. Today’s students often have soft skills like being creative, good at problem solving, and good with people, rather than the advanced math and tech skills the current job market needs. Anticipating an economy in which white-collar jobs would be the go-to and knowing how to learn would be the most important skill around, schools shut down apprenticeship programs and vocational training and graduated a generation of people who are prepared to manage, not to manufacture.
Finally, many companies are still feeling skittish about the economy. They don’t want to hire new workers until they’re completely confident of the recovery and that hasn’t happened yet. Many companies are choosing to use business services rather than hiring new workers. Jobs that used to be good entry-level positions leading to management
So what’s a young person with business skills to do? Opening a franchise is a real opportunity.
- Since franchise businesses use a proven model designed for franchisees without specific experience, young people with limited experience can still succeed.
- Most franchises are designed to be owned and operated by people with soft skills, not technical skill.
- Many franchises can be opened with a relatively small and predictable investment and scaled up over time.
- Owning a franchise requires hard work and an investment, but the franchisee doesn’t have to get hired. Franchisees are in control of their own futures, not waiting for someone else to call.
With help from family members or investors, young people can get started with a franchise business and bypass the problems of the youth unemployment crisis. Check our Search by Investment page to find a franchise business opportunity that will suit your needs.