Young Workers Facing An Extremely Difficult Job Market
According to the Bureau of Labor Statistics (BLS), the unemployment rate for workers ages 16 to 29 is a staggeringly high 15.2%, the highest rate since the BLS started tracking employment numbers in 1948.
These numbers have continued to march higher, even with the "leveling off" of the national unemployment rate over the past few months.
The 16-29 age group includes four different sets of people facing different circumstances. They are:
1. The young person who has decided to work instead of attending a post-secondary institution
2. The young person who is in high school and is planning on attending a post-secondary institution
3. The young person who is currently attending a post-secondary institution
4. The young person who has just recently graduated from a post-secondary institution
Every single one of these groups is suffering due to the increasing unemployment rate for workers aged 16-29, and all are suffering for different reasons.
The young person who has decided to work instead of attending college is having a very hard time locating a job. No job means that they are very likely living with their parents, who are probably facing their own financial struggles.
The young person who is currently attending high school and plans on attending college is not able to save as much money towards their college education as they would like, which may result in them choosing to delay their college plans, or even scrap them altogether.
The young person who is currently attending a post-secondary institution will need to lean on Mom and Dad or student loans in order to help pay for their costs if they are unable to find work. Due to the tightening credit market, many students in this situation are turned down for loans. If Mom and Dad aren't able to help pay the bills, then many students will be forced to delay their studies.
The young person who has graduated from a post-secondary institution will very likely have some hefty loans to pay off, and any delay in finding a decent-paying job will just make them fall behind early in their lives.
Not only are young workers less likely to find jobs compared to a few years ago, but they are also dealing with a number of other obstacles, including:
1. In order to close budget gaps, many universities have been forced to increase tuition costs, which just makes it even more expensive for students to attend school
2. A tightening credit market has resulted in dramatically increased rejection rates for students applying for loans
3. A high national unemployment rate and decreasing net worths have made it more difficult for parents to contribute towards their children's educations
4. An increasing number of people who are long-term unemployed are competing for the same jobs that people between the ages of 16 and 29 have traditionally received
The bottom line - the people who are the future of the United States are currently having a very difficult time finding jobs and paying for school, which will undoubtedly have a major impact on the country going forward.
Source: WSJ.com - Bank of Mom and Dad Shuts Amid White-Collar Struggle
Filed under: The Economic Meltdown