Recession creating a lost generation: only 46 percent of 16-24 year-olds have jobs

[steven johnson]

Fewer than half of all Americans aged 16 to 24 had jobs in September, the lowest number since record keeping began in 1948. Young people are hurting in the current economic slump. Employers and baby boomers are sitting tight delaying hiring and retiring. Young people from across the developed world can't find jobs. It's tough out there.

In the U.S., the unemployment rate for 16- to 24-year-olds has climbed to more than 18 percent, from 13 percent a year ago.

For people just starting their careers, the damage may be deep and long-lasting, potentially creating a kind of "lost generation." Studies suggest that an extended period of youthful joblessness can significantly depress lifetime income as people get stuck in jobs that are beneath their capabilities, or come to be seen by employers as damaged goods.

Only 46 percent of people aged 16-24 had jobs in September, the lowest since the government began counting in 1948. The crisis is even hitting recent college graduates. "I've applied for a whole lot of restaurant jobs, but even those, nobody calls me back," says Dan Schmitz, 25, a University of Wisconsin graduate with a bachelor's degree in English who lives in Brooklyn, N.Y. "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."

According to a BusinessWeek analysis, college graduates aged 22 to 27 have fared worse than their older educated peers during the downturn. Two years ago, 84.4 percent of young grads had jobs, only somewhat lower than the 86.8 percent figure for college graduates aged 28 to 50. Since then, the employment gap between the two groups has almost doubled.


Recession creating a lost generation