jueves, 13 de noviembre de 2014

YOUNG AMERICANS WITHOUT FUTURE.



YOUNG  AMERICANS WITHOUT FUTURE.
They are called the "Millennial Generation"

AMERICA’S 10 MILLION UNEMPLOYED YOUTH SPELL DANGER FOR FUTURE ECONOMIC GROWTH

By Sarah Ayres Steinberg   [HERE ONLY EXTRACTS]


Young Americans are unemployed at about twice the rate of older workers

As we have written before, America’s youth-unemployment crisis will have serious, enduring costs for individuals, society, businesses, and all levels of government. At 16.2 percent, the unemployment rate among Americans ages 16 to 24 is more than twice the unemployment rate for people of all ages. These young people are facing significantly higher rates of unemployment than any other age group, as Figure 1 below shows.


Some of the negative impacts of high youth unemployment are already clear: Young people are increasingly failing to make payments on their student loans, delaying saving for retirement, and moving back home with their parents. Other consequences will be felt long into the future. According to our analysis, a young person who experiences a six-month period of unemployment can expect to miss out on at least $45,000 in wages—about $23,000 for the period of unemployment and an additional $22,000 in lagging wages over the next decade due to their time spent unemployed.

Businesses will consequently suffer from reduced consumer demand, and taxpayers will feel the impact in the form of lost revenues, greater demand for more government-provided services such as health care, increased crime, and more welfare payments.

2.5 MILLION TEENS ARE OUT OF WORK OR UNDEREMPLOYED


There are 2.5 million Americans ages 16 to 19 who are out of work or underemployed. This group includes teens who are employed part time when they would rather be working full time, teens who are enrolled in school while actively seeking employment, and teens who are neither working nor enrolled in school. (see Figure 2)

Of these 2.5 million teenagers, nearly 300,000 are employed part time but are seeking full-time work. This means that they want a full-time job, but are not working full time because their employer cut back their hours or they could only find part-time work. This group is not included in the official unemployment rate, but because they are not working to the full extent that they desire, it is also an indicator of just how difficult the labor market is for teens today.

Another 728,000 teenagers are enrolled in school but are unemployed and actively seeking employment. Members of this group could include a 16-year-old high school student looking for an afterschool job at the mall, or a 19-year-old single mother who needs a full-time job during the day while attending community college at night. Unemployment is clearly a problem for the latter because she would need to provide for her family while also bolstering her education credentials, but it is also a problem for the former because afterschool jobs can play an important role in teens’ development. More than just providing teens with spending money, afterschool jobs can also help teens develop soft skills such as interacting with co-workers and time management, along with helping them explore career options.

COLLEGE GRADUATES ARE UNDEREMPLOYED AND IN DEBT

A college degree has long been viewed as the ticket to a good job and social mobility, but many recent college graduates are finding that their investments in education are not paying off. It is true that young people with a bachelor’s degree are more likely to find a job than their less-educated peers, but recent graduates today suffer from high unemployment rates, declining wages, lower-quality jobs, and few opportunities for advancement. At the same time, student debt in America has ballooned to more than $1 trillion, and one in four student-loan borrowers is delinquent on their loans.

In addition, unemployment rates among college graduates under the age of 30 are high relative to older college graduates. The unemployment rate for the youngest college graduates is 7.4 percent—twice the unemployment rate for college graduates in their 30s and early 40s, who experience an unemployment rate of 3.4 percent.


Moreover, the quality of the jobs available to recent college graduates today is much lower than in the past. In a new analysis, the Economic Policy Institute found that real wages for young college graduates have declined by 8.5 percent since 2000, and the share of young college graduates receiving employer-provided health insurance or pensions has also dropped in recent years.

CONCLUSION

Four years after the official end of the Great Recession, the pace of job creation remains too slow, and too many Americans are out of work. The slow economic recovery has hit America’s youngest workers especially hard, and while the unemployment rate has fallen from its peak, more than 10 million young people under the age of 25 are not fully employed.

Due to the severity and long-term economic costs of youth-unemployment —$20 billion in lost wages alone—of high youth unemployment, the United States can ill afford to let an entire generation of young people lose out on the earnings, wealth building, experience, and skills development that come from working.

-----  
By Sarah Ayre,  Policy Analyst in the Economic Policy department at the Center for American Progress.
------- 

RELATED ARTICLES

The Last Nail In The Millennials' Coffin: A Negative 2% Savings Rate  Adults under age 35—the so-called millennial generation
----
----
----
----  
 ----
----
---- 

====== 

No hay comentarios:

Publicar un comentario