Millennials Screwed Again, This Time on Unemployment

Mish

Age group demographics show millennials have the highest unemployment rates now.

Millennials Hard Hit Twice

Millennials were hit hard in the Covid recession and the Great Recession as well.

Generations Defined

The Generations Defined

The above chart from Think Tank - Defining Generations

  • In 2019 Millennials were ages 23-38
  • In 2009 in the Great Recession they were 13-28  
  • The corresponding BLS age groups during the great recession were 20-24 and part of 25-34.
  • The corresponding BLS age groups now are 25-34 and a part of 35-44.

Unemployment Rate by Age Group 2007-2020

Unemployment Rate by Age Group 2007-Present August 2020 Report

In 2008-2011 the oldest millennials were fresh out of college seeking employment in the worst jobs market since the Great Depression.

They are now 10 years older. The youngest millennials are now fresh out of college in the midst of a Pandemic shutdown.

But even the older millennials are faring poorly.

The worst two groups in terms of unemployment are age groups 20-24 and 25-34. 

Millennials, the Screwed Generation

In April of 2018, I noted Millennials, the Screwed Generation, Blame Boomers For Making Their Lives Worse.

51% of millennials claim boomers make their lives worse. Only 13% of millennials say boomers make their lives better.

Screwed Generation

  1. Consider Obamacare. It was purposely designed to make millennials overpay for healthcare. Millennials subsidize boomers who are better off financially.
  2. When I went to the university of Illinois, tuition was $250 a semester. One realistically could have worked summer and part-time jobs to pay for an education. Now kids are graduating from college with mountains of debt and no way to pay it back.
  3. Social security is projected to be bankrupt by the time millennials can collect. Benefits must drop.
  4. A pension crisis looms. The boomer solution has been to kick the can down the road, always raising taxes. Those tax hikes go nearly 100% to pension funding. What do millennials get out of it? Nothing!
  5. Millennials are likely to be the first US generation in history that is no better off than their parents, if not worse.

Payback

Within a decade Millennials will be running the country and they may not exactly be sympathetic to the pension plight of boomers.

Mish

Comments (67)
No. 1-22
davebarnes2
davebarnes2

I am age 71.
I have been saying for years that it is time for the Boomers and Oldsters to exit the political stage.
If we can declare an age of majority for voting why not declare that people over a certain age cannot vote?

jeffpogo
jeffpogo

No pension crisis -- bail out time! The Democrats already were trying to bail out the state and local funds using the last Bill.
SS -- will be means tested! If you saved over X dollars, no or little SS for you! Kind of like the covid bailouts -- if you make over X dollars, no bailout for you.

Casual_Observer
Casual_Observer

There is no pension crisis. People should know pensions aren't guaranteed once they go to PBGC and can be reduced. Most pensions have been returning well in excess of inflation if they were invested right. Reduce the pension return to 2% year.

Soft_coding
Soft_coding

Im ready to cancel social security. I never thought I’d get it anyway. get rid of Medicare too. Let them die. And provide free daycare and tax credit for making kids. Selfish? I learned it from the boomers.

shamrock
shamrock

Maybe the stereotype of them being soft, entitled, lazy snowflakes has validity. idk.

Tengen
Tengen

Some good points here. I don't know why, on sites like ZH, so many older people make comments supporting a generational conflict. The old inevitably give way to the young so you'd think they would want to work together or develop some sort of goodwill, but no. Apparently basic niceties are contrary to today's American values.

This is just the beginning of a long stagnation/decline and I think even we X'ers will fare worse than Boomers over time, but we'll still be better off than Millennials and Gen Z.

Some people lament that X'ers are invisible, but I like it that way. I'd hate to be thought of the way Boomers are when I'm older.

Tony Bennett
Tony Bennett

I would add:

If DJT's proposal to end payroll tax comes to pass, it will hasten the demise of social security / medicare trust funds.

The older generations own the bulk of assets. And fedgov and Federal Reserve are bent on asset inflation (widening wealth inequality) no matter the damage done to those who hold little or no assets. Either price of assets must fall ... or civil unrest will only grow.

Powellie, you're doing a heck of a job ...

Sechel
Sechel

Millenials stuck with student debt is a huge problem for the housing market. If they can't enter the market that's a key underpinning missing.

Millennials are still in an age group presumed no to vote in significant numbers and are young enough to move back in with mom and dad.

They're definitely getting short changed and in the process we're short changing ourselves. It was a huge mistake to let the banks and the lobbyists rewrite the bankruptcy laws carving out student. The result is rising education costs, huge debts, misallocation of capital and a lost generation of home buyers

magoomba
magoomba

It's worth pointing out that the 'boomers' demographic is stretched over a longer period of time than the others. It was often referred to as the 'generation gap' back in the day. I have observed that the first boomers had more opportunity. The latter boomers entered the workforce exactly at the time that the longest and most pernicious inflation clobbered the nation, virtually robbing them of their earnings.
Most never recovered.
Inflation still continues, robbing every latter generation, but is slower except where gov protected edu/med monopolies rule all. This inflation is expressed as the overwhelming debt that so much of the young have assumed.

njbr
njbr

The quiet of the graveyard--the silent generation.

The older boomers sputtering out.

Seems like a CV broom clearing out of the expensive oldsters.

michiganmoon
michiganmoon

I don't want to be too harsh, but America has lost patience. We expect things now.

I work with millennials that are frustrated that they don't have their parents wealth now. Well it took their parents decades to get to the point where they now are. In the internet age we expect everything instantaneously.

What are they doing to build that wealth? I have a millenial coworker that does Starbucks every morning but refuses to participate in her 401K and we get a 1 for 1 match up to 5%.

I have a good friend that takes trips every year to places like Hawaii, Jamaica, etc... Throws parties with beverages of expense, always has the latest iPhone and Apple product, has nicer vehicles than me and literally told me that it is "impossible for the middle class to invest and get ahead." Personal choices be darned.

My wife's cousin is on welfare but manages to get NFL Sunday ticket on his cell phone. My wife and I have a nice household income, I would love to watch my Lions lose on my cellphone, but we have financial goals and make choices.

I hear millennials say they have it worse than any generation ever. Laughable with all of the modern conveniences in 2020. I asked one how they have it worse than the generation raised in the Great Depression and then forced to fight in WWII and I got a Bernie Sanders campaign response about the rich stealing from the workers and the 1% not paying their fair share.

Older generations have set us up in a debt trap, but the millennials aren't helping it any in my mind. American culture is set to fail. Either party I vote for in November is just killing us slowly.

Carl_R
Carl_R

It kind of makes you wonder why millennials are so insistent that it is their right to keep Covid spreading. Given that it hits they economically the hardest, you'd think that they would have the strongest motivation to help try to limit the spread.

numike
numike

The quiet revolution: China’s millennial backlash Society puts pressure on young people in China to find a good job, buy an apartment, and get married — in that order, before the age of 30 https://www.ft.com/content/dae2c548-4226-11e8-93cf-67ac3a6482fd

nlightn
nlightn

The Fed and the Corrupt Crooks on Wall St. are in a panic and are very desperate.

Do not sell your gold or silver stocks cause you ain't seen nothing yet...

GOLD IS KING.....$5,000-$10,000

Gold is the money of Kings.

Silver is the money of Gentleman.

Barter is the money of Peasants.

Debt is the money of Slaves.

Realist
Realist

Life has never been fair and one shouldn’t expect life to be fair.

It has been my experience that the year you were born can make a huge difference in how your life might turn out. As can what year you choose to retire in. There is a lot of luck in life; some good and some bad.

Just as important is where you were born. Compare being born in the US vs many poor countries. Much more opportunity in the US.

As a simple example, imagine Bill Gates had been born 20 years earlier: or in Ethiopia. No Microsoft or 100 billion for Bill.

Timing, as they say, is everything.

I used to believe that my father got a raw deal to have to live through the depression in the 1930s and then go fight in WW2. He didn’t look at it that way though.

He always felt he was lucky to have survived both those events, and then lucky to have an opportunity to make a good life for himself afterward. I guess when you see others suffer or die around you, it changes your outlook.

It is also important to understand that timing and country do not guarantee success at all. It still takes someone with the right stuff to make a success of their life.

Acquiring the needed skills and education, working both hard and smart, looking for and taking advantage of opportunities, etc are all part of the big picture.

I know many Millennials who have done a great job of building their success. They tend to be very appreciative of the fact that they were born in a country that provided them with an education and an opportunity to make a success of themselves.

However, they are also adamant that much of their success was a result of their own hard work and efforts to take advantage of the opportunity that was provided to them.

I find it disturbing that Mish is talking about generational conflict in the US. He seems to think that Millenials are currently getting screwed by older generations and that there will be payback later. That is a very sad comment on America.

Is such division and conflict that common in the US? Does everyone hate everyone else?

I know that Trump is the divider in chief; fanning the flames of hatred in the US. But is his success in dividing people the result of an already existing underlying animosity?

ToInfinityandBeyond
ToInfinityandBeyond

Hate to say it but I fear we are all intercoursed. We are not getting back to full employment any time soon. The impending tsunami of deferred rent, mortgage and student loan payments will put the economy into a whole new world of hurt. Factor in our hopeless and clueless representatives in Washington and its game over.

debracarter
debracarter

Take away all the entrepreneur ideas that came to be sold, the buildings, these younger generations live in, phones, cars, and clothing, whatever the business is, thank the boomers! If, these younger generations, would realize how hard we all worked to make our childrens lives better, as well as our older parents, where is the gratitude? If, I didn't give all those trips, travelling all the time, I'd have more $ for myself. What did I get, from next gen or gen x, ungratefulness!

TeleAllende
TeleAllende

Wife and I make > $300k annual combined and we can't afford to buy a house in a neighborhood with decent schools (e.g. rated 10 on GreatSchools.org) here in Bay Area. Daycare costs $50k per year (after tax money), alternatively you can pick a location where kids don't learn diddly squat, and you have to pack their own breakfast, lunch and dinner. I'm sad to even think what kind of "education" kids are getting in poor neighborhoods. After each of us contribute $18k to 401k , and spend $3k on rent, plus food there doesn't remain too much discretionary money.
We buy and cook almost 100% costco food plus a low cost local Mexican fresh fruits and vegetables grocery.
We travel once a year from CA Bay Area to CA So Cal for Xmas and bring grandma over once or twice per year for summer , reverse trip. We don't watch any sports , don't travel anywhere else, and seem to work around the clock.
I have no idea how someone here can survive on <$100k income with kids.
At the same time I see CEOs making 10's of millions, completely disproportionate to their contribution.

ToInfinityandBeyond
ToInfinityandBeyond

Are we now living in the twilight zone? Having totally whiffed on his handling of the Covid epidemic here in the US, Trump is now considering a capital gains tax cut while at the same time millions are unemployed and looking to Washington for help. And please don’t buy into his line that a capital gains cut will spur job growth. Nothing more than trickle down economics that never worked before and won’t work this time either. Time to kick his ass out of Washington all the way back to Florida.

KidHorn
KidHorn

Millenials should blame democratic policies. Not boomers. Particularly the existence of Fannie Mae, Freddie Mac, and Sallie Mae. Without them, home prices and college tuition would be far lower. They had to end racist policies that prevented negros from buying homes and attending college. All it did was make them poorer.

Misgivings
Misgivings

So I guess these are the boomers kids. So much for wanting their kids to have a great childhood. Or maybe they did now they got nothing.

jiminy
jiminy

When I was young there was a draft and the Vietnam war. Probably, over a million young men had life ruined by forced military service. Millies can whine but they aren't facing that.


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