A significant challenge is emerging for young jobseekers in a rapidly evolving labor market, particularly for those aged 22 to 27 with degrees, whose U.S. unemployment rate has reached its highest level in a dozen years, excluding the pandemic period. This difficult landscape is exacerbated by economic uncertainty, making companies hesitant to expand their workforce. Professions heavily reliant on college graduates, such as information technology, are particularly affected, leading to arduous job searches for the decreasing number of individuals completing higher education. Adding to these concerns is the widespread fear that artificial intelligence (AI) will increasingly automate and replace entry-level positions.

In response to these pressing issues, the Citi Foundation has designated youth employability as the central theme for its annual $25 million Global Innovation Challenge. The philanthropic arm of the banking group is distributing half a million dollars to each of 50 organizations worldwide. These grantees are dedicated to equipping low-income youth with essential digital literacy, technical training, and crucial career guidance. Ed Skyler, Citi’s Head of Enterprise Services and Public Affairs, emphasized the foundation's goal: "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."

Citi's initiative is informed by direct employer feedback, which indicated that early career applicants often lack the technical proficiency required for roles they had spent years preparing for, underscoring the critical need for continuous vocational training and the development of soft skills. Skyler referenced a recent World Economic Forum survey involving over 1,000 companies that collectively employ millions. The survey identified skills gaps as the primary obstacle to business transformation over the next five years. Furthermore, two-thirds of respondents anticipated hiring individuals with specific AI skills, while 40% expected to eliminate jobs that AI could perform.

Some of Citi’s grant recipients are directly addressing the AI challenge by teaching individuals how to effectively prompt AI chatbots for automated tasks. However, Skyler stressed the equally vital importance of funding efforts that cultivate qualities AI currently lacks, such as teamwork, empathy, judgment, and communication. He clarified, "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," but rather, "What is consistent throughout the programs is we want to develop the soft skills."

Among the notable recipients is NPower, a national nonprofit dedicated to enhancing economic opportunity in underinvested communities by improving access to digital careers. Most of NPower’s students are young adults aged 18 to 26. Robert Vaughn, NPower’s Chief Innovation Officer, indicated that Citi’s grant would significantly expand spaces in a program designed for "green students"—those with no prior tech background and often no college degree. Vaughn highlighted the tech industry's dynamic skill requirements, emphasizing that applicants need to demonstrate broad capabilities in areas like cloud computing, artificial intelligence, project management, and emotional intelligence. He noted that with the automation and outsourcing of some entry-level roles, companies are increasingly prioritizing AI comfortability and general competency over traditional college degrees or specialized skillsets, seeking individuals who can be "more than just an isolated, siloed technical person," and also excel in customer service.

Per Scholas, another tuition-free technology training nonprofit, also received a grant. Its president, Caitlyn Brazill, stated that the funds would support career development for approximately 600 young adults across key cities including Los Angeles, New York, Orlando, Chicago, and the greater Washington, D.C. area. To ensure curriculum relevance, Brazill continuously collaborates with both small businesses and large enterprises. She underscored the significance of Citi’s focus on youth employability, particularly as AI’s productivity gains prompt companies to re-evaluate entry-level positions. The dwindling opportunities at the start of career ladders necessitate that workforce development nonprofits like Per Scholas provide intensive hands-on training to secure jobs that previously demanded more experience. Brazill cautioned, "But if there’s no bottom rung on the ladder, it’s really hard to leap up, right?" and warned that a failure to establish new career pathways could harm the economy long-term by impeding young people from entering high-growth sectors.

Martha Ross, a senior fellow at the Brookings Institution, affirmed Citi’s correct focus on technology’s disruptive impact on the labor market. However, she posited that the sheer scale of this disruption is "too big for philanthropy" alone. Ross reflected, "We did not handle previous displacements due to automation very well. We left a lot of people behind. And we now have to decide if we’re going to replicate that or not."

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