It’s normal to be unemployed right after college, but being young and unemployed for a long time is bad for everyone.
- Young people are being disproportionately affected by the recession because they’re missing out on entry-level employment opportunities, even when they’re highly qualified. Employers lose, too: young employees bring freshness and ambition to the job.
- Being unemployed in one’s youth can lead to lower lifetime earnings due to missed opportunities, experiences, and sometimes a stigma. On a large scale, this will adversely affect tomorrow’s retirees, who will depend on this generation’s earnings to fund their Social Security benefits.
- Some call for government action in the form of a more flexible minimum wage (employers that must pay the increased minimum wage are increasing their education and experience requirements commensurately), or increased training and apprenticeship programs. But the budget deficit makes these options unlikely.
Facts & Figures
- The unemployment rate for 16- to 24-year-olds is more than 18% in the U.S., 39% in Spain, 24% in France, and 19% in Britain.
- 46% percent of 16- to 24-year-old Americans were employed in September 2009.
- A study showed that 15 years out of school, workers began their careers in a recession earned 2.5% less than workers who began in a better economic climate.
Best Quote
“Every morning I wake up thinking today’s going to be the day I get a job. I’ve not had a job for months, and it’s getting really frustrating.” – Dan Schmitz, recent college graduate