In today’s rapidly evolving job market, young people are facing unprecedented challenges in securing stable employment, especially those who have recently graduated from college. The U.S. unemployment rate among degree holders aged 22 to 27 is currently the highest it has been in over a decade, excluding the pandemic years. Economic uncertainty has led many companies to hold back on hiring, and sectors that traditionally employ a large number of college graduates, such as information technology, are experiencing particularly severe hiring slowdowns. Compounding these difficulties are emerging fears that artificial intelligence (AI) and automation may displace many entry-level jobs, further complicating the job search for young adults entering the workforce.
In response to these pressing issues, the Citi Foundation, the philanthropic arm of the global banking group Citi, has made youth employability the central focus of its 2024 Global Innovation Challenge. The Foundation is committing $25 million in total, distributing $500,000 each to 50 organizations worldwide that offer digital literacy training, technical skills development, and career guidance specifically aimed at low-income youth. These grants aim to equip young jobseekers with the tools they need to navigate a fast-changing labor market and to improve their chances of gainful employment.
Ed Skyler, Citi’s Head of Enterprise Services and Public Affairs, emphasized the urgency of preparing youth for employment in a world where technological change is accelerating rapidly. “What we want to do is make sure young people are as prepared as possible to find employment in a world that’s moving really quickly,” he said. Feedback from employers has highlighted a significant skills gap among early-career job applicants. Many young people lack the technical competencies required for the roles they aspire to fill, underscoring the need for ongoing vocational training and the cultivation of soft skills such as communication, teamwork, and emotional intelligence.
Supporting this perspective is a recent survey conducted by the World Economic Forum, which polled over 1,000 companies collectively employing millions of workers. The survey found that skills gaps are the greatest obstacle to business transformation over the next five years. Notably, two-thirds of these companies plan to hire staff with specific AI-related skills, while 40% anticipate that AI will eliminate certain existing jobs. This dual trend indicates a labor market that demands both advanced technical proficiency and adaptability to new technologies.
Some of the organizations receiving Citi Foundation grants are already innovating by teaching young people how to effectively use AI tools, such as prompting chatbots to automate routine tasks. However, Skyler pointed out that it is equally important to fund programs that focus on skills that AI cannot replicate, including judgment, empathy, and collaborative ability. “It’s not a one-size-fits-all effort where we think every young person needs to be able to code or interface with AI,” he explained. “What is consistent throughout the programs is we want to develop the soft skills.”
Among the beneficiaries is NPower, a national nonprofit organization dedicated to expanding economic opportunities in underserved communities by making digital careers more accessible. The majority of NPower’s students are young adults between 18 and 26 years old, many of whom come from backgrounds with limited access to technology education. Robert Vaughn, NPower’s Chief Innovation Officer, said that the Citi grant will at least double the capacity of their program designed for “green students” — individuals who lack a tech background and, in many cases, have not attended college.
Vaughn highlighted the evolving demands of the tech industry, where applicants must now showcase a broad skill set that includes cloud computing, AI literacy, project management, and emotional intelligence. The traditional focus on specialized technical skills or degrees is giving way to a need for adaptability and interpersonal skills. “It is more now about being able to be more than just an isolated, siloed technical person,” Vaughn said. “You have to actually be a customer service person.” This reflects a shift toward valuing employees who can integrate technical knowledge with effective communication and problem-solving abilities.
Another recipient of the grants is Per Scholas, a tuition-free technology training nonprofit. Caitlyn Brazill, the organization’s president, explained that the funding will support career development programs for approximately 600 young adults across several major U.S. cities, including Los Angeles, New York, Orlando, Chicago, and the greater Washington, D.C. area. To keep their training relevant, Brazill collaborates closely with a wide range of employers, from small startups to large enterprises, gaining insights into the changing nature of entry-level roles