Young People Hit Hardest By Recession
Unemployment has ravaged almost every part of the global labor force. Yet this economic slump has hurt young people the most. Those between the ages of 16 and 24 are having the most difficult time finding jobs. Even though some dropped out of high school; many are college graduates and have even gone on to earn MBAs and law degrees.
In the U.S. the unemployment rate for 16- to 24-year-olds is now more than 18 percent. In the previous year it was 13 percent.This means that roughly 20 percent of young adults don’t have a job. These statistics don’t even calculate how many are underemployed. This displays that not only are American families struggling, but even youngsters can’t find jobs to help their families out.
There is also long-term harm that can be caused if young people are incapable of starting off their careers. These individuals may turn into a “lost generation.” Some studies have shown that when youth can’t find jobs over an extended period of time it can lead to problems including significantly lower lifetime incomes.
The interpretation behind this is that many people get stuck in the same old job, doing vocations that are below their skills and abilities. This in turn can lead employers to think that they are incompetent or damaged goods. These circumstances will lead to discontented employees even if they have an education because they aren’t meeting their capability.
Another problem is that many corporations aren’t hiring new employees particularly young workers. This means that they are gone from the workplace. As a result, businesses are missing out on new ideas and concepts that younger generations bring in to rejuvenate the company. American companies are not hiring this generation, which is similar to the problem Japan faced in the 1990s and present day.
The implications of this problem during the 1990s in Japan has shown long-term affects on the workplace. Japanese individuals that began their career during the 1990s are responsible for 6 in 10 cases of reported depression, stress, and work-related mental disabilities. Because of these circumstances and results, experts believe the exact thing will happen to young workers in America. So this problem will affect young workers that are uneducated, college grads, and those still working on their degrees. Professors are already reporting that their students are anxious about the market. This fear is affecting college students nationwide including those at highly ranked universities like Stanford.
There is so much competition out there for every job. But it seems to make rational sense that companies would hire young workers because they’re low-cost and get rid of the older expensive workers but companies are not taking risks. They are not hiring or even taking applications. Another obstacle is that many companies are looking for extensive experience which newcomers don’t have.
There are thousands of young people that are unable to attain jobs in this economy. There are long-term implications that can hurt this “lost generation.” Recession graduates not only suffer from depression and anxiety but typically earn less over their working career.