And Why That Matters for the Future of the Economy

Across the country, two trends are sounding alarms for our economy: fewer young people are entering the workforce, and entire industries—like manufacturing—are struggling to fill critical roles. While these may seem like separate problems, they are deeply interconnected and signal a broader challenge: our career navigation and training systems are not keeping pace with the needs and expectations of today’s workforce.

To meet the workforce needs of the future, we need to begin transforming these systems to forge equitable pathways to good jobs. Solving the labor force participation gap—particularly among Gen Z—and addressing sector-specific labor shortages requires more than outreach or incentives. It demands a fundamental shift in how people access information, navigate opportunities, and acquire the skills needed to succeed.

The Signals We Can’t Ignore

The composition of the workforce is always shifting. Historically, as older workers retire and exit the workforce, young workers have stepped in to replace them. However, Gen Z is entering the workforce at lower rates than previous generations, with many young workers questioning what kind of work is worth their time. At the same time, employers in manufacturing are struggling to fill thousands of open jobs—many of which offer good wages but little support in getting there.

What these trends reveal is a broken pipeline. Young people aren’t disengaged—they’re disconnected. When young people can’t see a future in the workforce, and when industries can’t connect with talent, it signals that the map to opportunity is missing key roads, landmarks, and access points. This is especially true for young workers of color, who often face systemic inequities well before they even reach a job interview.

Why Career Navigation Systems Matter

Fixing this broken pipeline between workers and opportunity requires career navigation systems that take an ecosystem approach. That means going beyond connecting jobseekers to employers—it means building the systems and structures that help people see a future for themselves in the economy and then supporting them to reach it.

Creating an equitable economic future starts with reimagining how people access information, explore options, and pursue careers—but it doesn’t stop there. It also requires alignment across education, training, and employment systems. When those systems operate in isolation, they leave people—especially young workers of color—without clear pathways forward.

To truly transform career navigation, we must invest in the infrastructure and collaboration that makes these pathways real. That includes improving how training connects to opportunity, ensuring navigators are well-supported, and creating durable partnerships among educators, employers, and workforce organizations.

It’s not solely the responsibility of individual workers to “find their way”—it’s our collective responsibility to ensure the road is clear, the map is up to date, and that everyone has what they need to succeed.

Job Quality Matters, Too

Of course, navigating into a job is only half the battle. The job itself must be worth staying in. As younger workers demand flexibility, advancement, and respect in the workplace, employers are realizing that old job designs simply won’t cut it. Employers who are investing in their workforce and are redesigning their workplaces to adapt roles to better meet the needs of a changing workforce are reaping the benefits.

This is especially critical in sectors like manufacturing, where open roles outnumber applicants. Employers who want to attract a new generation of talent must rethink how jobs are structured—and our team is helping them do just that. From building clearer advancement pathways to offering more predictable scheduling, improving job quality cannot be optional—it’s essential to success.

Building Equitable Pathways, Together

These challenges are complex. But the solutions are already being tested and refined in communities across the National Fund’s network. By supporting local partners to bring together employers, educators, and workforce leaders, we can build more connected, coordinated systems centered on workers, grounded in equity, and designed for the future.

When we transform career navigation and training systems, we don’t just help people find jobs—we build bridges to opportunity. We open doors for those who’ve been excluded. And we show young people that there’s a future worth investing in.

Because the question isn’t just who’s missing from the workforce—it’s what we’re doing to help them find their way in.