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A study found that 1 million young adults who experienced long-term unemployment during the recession will collectively miss out on income equaling $22,000 per person in the next decade.
Millennials are on shaky ground, struggling to gain the same financial security afforded to their parents, new data analysis suggests.
When baby boomers were young adults, their net worth was double that of today’s young people, who earn $10,000 less than their counterparts did in 1989, according to findings from advocacy group Young Invincibles. Its analysis of Federal Reserve data comparing 25- to 34-year-olds in 2013 and 1989 after adjusting for inflation confirms what many already suspected: The American dream has slipped out of reach for the country’s largest generation.
“Our findings show that we’re not seeing a ghost. It is harder to get ahead in America today,” principal investigator Tom Allison said.
The report points to declining wages and student debt as key factors. For boomers in 1989, the average tuition at four-year public colleges was $3,454 in today’s dollars, the study found. Today, that figure has risen to $9,410.30.
Millennials who entered the workforce in the wake of the Great Recession still feel the sting. Early career income often lays the foundation for lifetime earnings; the study found that 1 million young adults who experienced long-term unemployment during the recession will collectively miss out on income equaling $22,000 per person in the next decade.
“Entering the workforce during a recession can haunt someone’s income. You enter the workforce, and you start at a lower rung,” Allison said.
The analysis echoes the takeaways of a collective study by Harvard, Stanford and the University of California at Berkeley last month, which found that only half of millennials earn more than their parents.
The new research delves into the racial wage gap among millennials. Though the generation is the nation’s most diverse, racial and ethnic income disparity is striking. The study found that young white Americans outpace African-Americans and Latinos in earnings by $20,000 and $17,000, respectively.
The report suggested policies that would strengthen the social safety net for young adults, including earned income tax credit and housing policy reform.
“President-elect Trump and the new congress is going to have to demonstrate their commitment to expanding economy for young people,” Allison said. “This isn’t just a young adult problem, this is an American problem.”
“The study found that young white Americans outpace African-Americans and Latinos in earnings by $20,000 and $17,000, respectively.”
The answer is right under your nose dummy-journalist! When you bring in 40+ million illegals and countless anchor babies spring up in the next 20 years, guess what happens to the labor pool and salaries of those at the bottom? Even a child could tell you the obvious that there are no jobs as illegal Mexicans flood the market and flood out the blacks by the droves.
There aren’t 40 million illegals. It’s more like 11. And they’re not necessarily taking jobs; I recall a story saying when they deported a bunch of illegals from Georgia, they couldn’t find any fruit pickers, no “regular” Americans wanted the jobs, so the fruit rotted in the fields.
I’m not a millennial, but I sure won’t do as well as my parents. I’ll never own a home. Heck, I don’t even own a car.
The 1st article, from Pew, says 11.1 million illegals in 2014. The second, from USA Today, says “The number of undocumented immigrants living in the U.S. remains steady at 11.1 million for the sixth straight year, as a drop in people coming from Mexico is offset by an increase from the rest of the world, according to a report released Tuesday.” It was published in Sept 2016, if the links aren’t posted below.
http://www.pewresearch.org/fact-tank/2016/11/03/5-facts-about-illegal-immigration-in-the-u-s/
http://www.usatoday.com/story/news/world/2016/09/20/illegal-immigration-united-states-mexico-asia-africa/90735292/
No, no PoiD. Eleven ilegals has been the number for a decade. That is counting only those known to be here. Remember, these illegals try desperately to remain under the radar for obvious reasons. The true number thrown around is closer to 20 million.
About jobs; long are the days when illegals entered US to work the farm fields. These people now are in the construction, transportation, retail, etc. industries. I know, I live in Texas.
Correct Sani2000. I have lived and worked in many states on the mainland in the past. You and I both have seen the mess firsthand. Many here in Hawaii haven’t even flown out to the mainland to see the mess our politicians created.
Now as far as the count being 20+ million you are correct on that count as as well when it comes to reports by the feds on the national scale but oddly their numbers seem severely off because I have traveled across many sanctuary cities like Los Angeles where the count of illegals, admitted by the city itself, is closer to 10+ million (these are unofficial numbers) as they stay under the radar and the US Census only manages to count those that aren’t afraid to be counted which is significantly lower than the unofficial numbers! It’s kindof like the unemployment numbers, theres the U-6 Unemployment Rate, U-5 Unemployment Rate and then there’s the suckers official unemployment rate which is completely bogus! LOL
Yeah, the answer to any social ills is always right at hand. It’s “Those Others!”
Hah. Codswallop and blatherskite.
We could become a lily-white nation tomorrow (God forbid!) and the aftereffects of the Baby Bush recession would still be there bollixing us up.
Prit-near time for Hawai’i Nei to think seriously about going it alone, so the lily-whiters don’t drag us down into the Drumpfs.
HanabataDays, you speak from experience or are full of it as usual? Go ask any black guy on the mainland who took his job and why he can’t get one today?
We millennials know one thing: Trump was and is a phony. He never intended to bridge the gap between rich and poor. He never intends to help young people. He is all about shoveling money to the rich. Even more money than was shoveled to the rich under Obama and Bush. Revolution is coming folks.
Enough with Trump’s idiotic tweets and ignorance. Look at what he does, not what he says. Beware the entertaining clown who dances on the bodies of the growing poor and damaged, wounded middle class.
Allie, reread the story, it is one of CURRENT FAILURE for many non-Caucasians. Trump has not even taken office yet. Who has been in power for the past 8 years? (Not a hard question)
Read what I said. I blame Obama for his centrist, cautious approach to socio-economic and racial problems. Odd that ideological Republicans blame him for dividing the country. He inherited the division. He was so cautious and conservative.
IRT allie, even if Obama inherited the division he did nothing to make it better and IMO he made it worse. It is also my opinion that Obama, who lacked any business experience or skills, chose to legislate equality as oppose to raising the economic tide for everyone. It was not caution it was incompetence.
Grow up already and get a job. Stop posting nonsense and no one is entitled to anything. Every politician is out for themselves and their sponsors. Geez you’re as pathetic as the bums on welfare we’re paying for. Maybe you should move to North Korea where socialism is the norm.
I think my son’s going to be ok. When he started his first f/t job after college, he opened an IRA and began setting aside a percentage of his paycheck for savings. I believe he must take after his mom.
That’s great but I don’t see how anyone can really save enough money in an IRA given the contribution limits per year to set them up for retirement. Better off maxing out a 401K or perhaps even a Roth 401K if-possible. I’m not even totally sold that a maxed out 401K will be enough to live on in retirement for these millenials given how much the cost of everything has increased. Personally, I feel the IRA product sold and pushed by financial advisers is more of a “sales” hook to gain one’s business; like life insurance. Still, it’s great your son is saving something and not spending it all, good choices being made and hopefully he sticks to it.
Apparently, IRA is not meant to be a total retirement solution. As with Social Security, it too is not meant to be a total retirement solution. If you combine Social Security with IRA with 401K, you can get there. Even if you don’t have a 401K, you can still save for retirement in a taxed savings account.
Yeah, he also signed up for the employers 401K. The thing that encourages me is that at his young age, he’s thinking of these things.
Yep, I agree unfortunately all of those things may not be enough either.
Not sure how opening an IRA as a millennial can be seen as anything but positive. You don’t need to go through a financial advisor to do so. Easiest way to track the market is to simply open one up at a low cost brokerage service, fund and invest across low cost indexed funds. You don’t need the financial middle man if you’re not initially dealing with a large investable balance. Wealth management will be key later in life but an IRA (especially a Roth where earnings grow tax free) make the most sense for millennials where time (for compounding earnings) is the greatest asset.
I agree, just saying it’s often marketed and talked about like it’s this financial savior for retirees. In my opinion it’s not. Does it mean you should still do it? Absolutely! Totally agree with everything you said, just trying to be realistic in expectations.
Yes peum. Agreed. Expectations need to be kept in check. That’s the one area where it’s always right to err on the side of caution.
All of this, exactly.
pffttt, 401k and IRA, those are just to pay the basic bills in the end! So unless he makes a good fortune over his lifetime he’ll end up far below government workers in devout “D” states like California NY, or Hawaii. Just pass him your government union card to take one of those government desk jobs where workers nap for 8 hours and have him collect an ERS pension with unlimited funds for life and free health care! LOL
The maximum one can collect from SSA in 2016 is: $31,668
The maximum one can collect from ERS in 2016 is: UNLIMITED, Very common for government union retirees with 30+ years collecting $150k – $300k annually AND $500k Cadillac pensions are very common too and they retire at 55 with free health care for life!
Your financial illiteracy is dangerously ignorant.
Feel free to post your facts with sources to correct any errors you believe I’ve made. Until then, you’re another steaming government union troll.
Let me get this straight. You’re advocating no savings plan because government workers have a much better retirement setup than anyone else? All I see here is an agenda and no relevance to the article at hand. Not everyone is as lucky as you to have a government job. It’s great to laugh at those when you’re high and dry. Did I just assume something false? Well that feels stupid doesn’t it?
Or are you advocating transfer of funds from state sponsored pension plans to millenials? That sounds like socialism to me.
Troll is a troll is a troll. All that’s different is your agenda.
badcard36, I think you’re gravely confused due to you’re horrific reading comprehension and need to reread my original post to cellodad and read every work carefully. Secondly, you’ve stated lies that I’m an union government worker, again due to your lack of reading comprehension you’ve falsely assumed me but I was referring to cellodad.
Finally, you’ve insinuating that I’m advocating that the ERS pension be available to everyone, well, yes I am but that wasn’t my original point to cellodad in this comment. But since you’ve brought it it, why not open up the ERS to everyone? In my opinion, it’s the “D” Aloha spirit to allow every resident holding a valid ID in Hawaii to be able to get back what they paid. Why should the ERS be only for a few self-entitled and only privileged government workers? Why not let everyone in on it? Isn’t spreading the wealth a purely “D” party agenda? Don’t you realize we’re in a heavily devout “D” party county and state that loves socialism?
Fortunately, the era of lowered expectations has ended, just as it did after the Carter Presidency. The millennials I work with are mostly smart and ambitious, and will ignore the dire forecasts of dubious organizations such as the advocacy group Young Invincibles.
I have low expectations for the next two years. With republicans in control, only thing I think will happen are more tax cuts and welfare for the rich. This will soon crash the economy just like it did under that republican hero GW and Ronald Reagan.
“”I have low expectations for the next two years.””
Sure, cleaning up O’bama’s mess won’t happen overnight.
Good! It’ll make you more productive. Maybe you can finally get off your lazy a$$ and finally get a job after welfare is taken away from you!
I want to work with Palani!
As GI bill participant with a wife back in the early 50’s had to supplement my income by hiring out at the lowest level. Back then worked for the college cleaning the restrooms in the gym for a dollar an hour. Graduated to to yard work around the lakefront cottages .Later on, another Nisei from Hawaii and I worked on contract basis installing the simple “yagi” antennae in the farming communities. It took us 45minutes to I install each antenna and was paid $5 each. They supplied the truck and all materials needed. Never succumbed to conspicuous consumption and only got involved in any installment purchases except for my first new car purchasd in 1959. Since then have purchased all purchases by cash. Only tmonthly installment payments were for our house mortgage. For routine purchases if you could not buy it can outright we did not need it. Have bought and sold 4 different homes, each time profiting from the sales/purchases. Have been retired for over 25 years and purchase last condimimium by cash.
Guess my personal experience is under scrutiny for applicability?
Personal experiences are the best teaching method. When the younger generation hears firsthand the experiences and struggles of their elders, the smart ones will say “Maybe things aren’t so bad after all” and endeavor to better themselves. Most folks your age and mine went through similar times. We didn’t have Federal student loans to help us then and sometimes Rice and Gravy were our only meals. Discrimination was rampant then. But we had the desire to better our lives. It was well worth the struggle to achieve our goals. Looking back, all I can say to those still struggling, “Don’t give up. Other generations have gone through tough times and you can succeed as well”. Good luck and always remember that ambition is the key to success.
“The study found that young white Americans outpace African-Americans and Latinos in earnings by $20,000 and $17,000, respectively.”
Eight years of Obama and this is what you get. Time will tell what Trump can do but I’m hopeful it’s better than the past eight years when we’ve had a president more interested in dividing our country for political reasons than doing what’s best for all. Obama’s plan was blame Bush for everything then using administrative rules to force higher pay and benefits as oppose to improving the economy, which would help everyone.
Discipline is the key to any personal wealth creation for retirement. Willing to start at the bottom of the employment ladder and progressing through self-education program can achieve a successful retirement. Discipline means doing without immediate conspicuous consumption. Simply it does not apply to major purchases like autos or homes, mesning if you don’t have the cash, you could do without it. It means curbing your desires for competing with your neighbor or friend.
Another censored post?
Wouldn’t the millenials inherit their parents’ wealth? It’s not like they will be homeless when they’re older. The only problem would be if the parents had more kids than their estate can make comfortable for life. But if the parents were sensible and had 0-3 kids, they should all be ok.
You mean inherit their debits! LOL
Can’t achieve financial security by being lazy; stop procrastinating and get to work!