The current unemployment rate for 16 to 24 year olds in America is 19.1 percent. You can only imagine what the underemployment rate is (30+ percent). This is a disturbing trend because research has shown that young workers that lag in terms of starting their career will never catch up financially to other cohorts. The fact that the unemployment rate is twice the rate of that in July of 2000 should be startling. (Source)
This recession has hit young adults particularly hard,” according to Rich Morin, senior editor at the Pew Research Center in DC. So hard that a whopping 85% of college seniors planned to move back home with their parents after graduation last May, according to a poll by Twentysomething Inc., a marketing and research firm based in Philadelphia. That rate has steadily risen from 67% in 2006. (Source)
Unemployed Grads NOT Counted among the “Unemployed”: With graduates flooding out of the colleges and universities with dim prospects for employment you might think that unemployment would increase. It won’t. If you’ve never had a job, then, according to Federal lies statistics, you are not counted as being unemployed. To U-3 and U-6 we propose a new category: U-Lose. (Source.)
In the UK things are even worse for new grads: “There are now 40 or 50 graduates chasing every job in the market.” (Source.)
Devil’s Workshop: Alert observers note that sweeping political changes often start with protests led by upset college students with idle time on their hands.
The extent of the unemployment problem in the US is given historical perspective by the following chart – the current situation stands alone when measured against all post World War II recessions. (Source)
Every state from December of 2008 to December of 2009 saw private sector job losses: (Source)
It’s not just the young, 60 Minutes reports that underemployment soars to 23% in Silicon Valley: