The Great Recession dragged down Millennials, putting them years behind economically. Now, the COVID-19 recession is damaging another generation of young workers. Workers aged 16 to 24 typically have higher unemployment and underemployment than older workers (and remember here that you only count as unemployed if you’re trying to find work—it’s not like this statistic counts kids who don’t want to work), but “The overall unemployment rate for young workers ages 16–24 jumped from 8.4% to 24.4% from spring 2019 to spring 2020, while unemployment for their counterparts ages 25 and older rose from 2.8% to 11.3%,” the Economic Policy Institute reports. “Spring 2020 unemployment rates were even higher for young Black, Hispanic, and Asian American/Pacific Islander (AAPI) workers (29.6%, 27.5%, and 29.7%, respectively).”
That’s not just a problem now. It puts young people behind the curve on getting job experience, it means debts can build up faster, and “Research on prior recessions finds substantial evidence that workers who enter the labor market during an economic downturn are scarred for many years. These unlucky workers are more likely to experience lower earnings, greater earnings instability, and more spells of unemployment in the long term compared with similar individuals who entered the labor market in better times.”
This blog originally appeared at Daily Kos on October 17, 2020. Reprinted with permission.
About the Author: Laura Clawson is labor editor at Daily Kos.