Turn your talent filter into a talent pipeline

Education and workforce systems were originally designed to filter out less qualified individuals, not to provide pathways for all young people to succeed. This outdated design is causing major problems as the youth unemployment rate has risen to 12.4% in 2025, up from a 20-year low in 2023. AI is reshaping entry-level work, with 6.1% of jobs held by young people being highly exposed to AI-driven change.

At the same time, there is a growing shortage of skilled workers needed for reshoring, the energy transition, and AI-related buildout. The U.S. labor force for 16- to 24-year-olds is projected to fall by 2.04 million between 2025 and 2035, while high school graduation rates are expected to decline by 13% between 2025 and 2041.

To address this issue, companies should build their talent pipelines backward from real hiring needs instead of forward from generic curricula. FedEx successfully implemented this approach through its "Youth who Deliver" program, which started with logistics roles in Mexico and mapped the required skills. The program has graduated over 34,000 young people, with 48% being women, and resulted in nearly $4.5 million in added income for participants, a 204% return on investment.

This shows that training should focus on moving individuals into work, not just completing certifications. By auditing the pipeline stage by stage, companies can identify where people are falling out and co-design training to address these gaps. Ultimately, investing in workforce development is crucial for economic growth and should not be seen as someone else's responsibility.