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Tallo’s latest research reveals a critical disconnect between education and career outcomes — and shows how employers can get ahead of chance to build stronger talent pipelines.
When Tallo CEO Allison Danielsen appeared on CBS Evening News last month, she shared a sobering statistic that’s reshaping how we think about early talent: one in four young adults can’t find a job in the career they want to pursue.
But here’s what might surprise you even more — this isn’t actually a talent problem. It’s a resource gap.
The Numbers Tell a Story
Our comprehensive study of over 2,000 young adults ages 18-30 reveals a complex picture of career navigation challenges:
- 62% of young adults are not in the career they intended to be in after completing their education
- Only 19% feel very confident their current skills can get them a job in their desired career path
- 43% feel either isolated and lacking career support, or unsure of where to find career support
- 33% cite financial concerns — both student loan debt accumulation and immediate living costs — as their biggest career barriers
These findings paint a clear picture: the gap between education and meaningful employment is about access to comprehensive resources — including skills development, career information, support systems, and opportunities.
When Education Doesn’t Equal Employment
Perhaps the most telling finding in our research is that nearly two-thirds of young adults are not currently in the career they intended when they completed their education. When we asked those not actively trying to land a job in their intended career path why, the top reasons revealed systemic issues:
- 27% don’t have the required education credentials
- 25% had to take different jobs to pay bills
- 18% found their intended career more difficult to break into than expected
- 18% started families and shifted priorities
These responses suggest that multiple barriers — from skills and credentials to financial pressures — create obstacles to career success.
The Real Barriers: A Comprehensive Challenge
Our research reveals that young adults face interconnected challenges across multiple areas:
Confidence Crisis: The clear misalignment between talent’s skills and experience and how confident they are that those skills are sufficient to help them get a job in their desired career path underlines the importance of connecting early talent to work experiences to help them gain the skills they need to succeed.
Financial Pressure: Concerns about accumulating student debt and meeting current living costs topped the list of career navigation barriers. When young people are focused on immediate survival, long-term career planning becomes a luxury.
Lack of Information and Support Systems: The following three highest responses — lack of clear career goals (28%), lack of mentorship or guidance (26%), and limited access to career information or resources (25%) — suggest a lack of support and/or a lack of access to accurate career information.
Success Stories: When Support Makes the Difference
The research also revealed encouraging patterns among young adults who are successfully pursuing their intended careers. These individuals were significantly more likely to:
- Feel supported and encouraged in their career exploration (73% vs. 45% of those not in intended careers)
- Have access to enough or more than enough resources to help them with their career options (86% vs. 62%)
This data reinforces a key insight: when young adults have the right support and information, they thrive.
Getting Ahead of Chance: A New Approach for Employers
What some employers perceive to be a gap in talent’s abilities is actually a gap in resources. Our research shows that smart employers aren’t waiting for talent to be “job-ready” — they’re showing up early, building trust, and leading them there.
Start Earlier: More than half of talent (54%) is actively exploring and thinking about their future career paths, but are not yet decided on a specific job or field. Employers should invest time and resources to connect with this talent group early on, as they have not yet decided on a career path and could be open to new opportunities and fields.
Provide Clear Pathways: Providing current employees (and future candidates) with clear career pathways and the steps needed to get there goes a long way with young adults in building their confidence that they are progressing toward their career goals.
Engage During Exploration: Working with talent even earlier in the career exploration process — such as in high school — can increase their awareness of steps needed to progress toward career goals and therefore instill confidence.
Key Takeaways for Talent Leaders
- There’s an alignment problem between education outcomes and career access. More than 3 in 5 young adults aren’t in the careers they intended after completing education.
- Early career navigation support is critical. Young adults who feel supported in their career exploration are significantly more likely to be in their intended careers and feel confident about their future prospects.
- Proactive engagement wins over reactive hiring. Organizations that connect with talent early, provide clear career pathways, and offer ongoing support will have significant advantages in building diverse, skilled workforces.
A Call to Action
The resource gap represents both a challenge and an opportunity. While young adults face unprecedented complexity in navigating career decisions, organizations have the opportunity to get ahead of uncertainty by becoming trusted guides who provide comprehensive support — from skills development to career information to meaningful opportunities.
Young adults aren’t waiting for someone to hand them a plan — they’re searching, exploring, and hoping to find clarity. The organizations that will win the next generation of talent are those who meet them where they are and help guide their journey from exploration to employment.
Ready to transform your approach to early talent? Download the full “Resource Gap” research report here to access detailed insights and actionable recommendations for building stronger talent pipelines.
