December 05, 2011
The Generational (Job) Divide
Four years ago the generational divide might have been best captured by whether one had a social media account. Today, that divide is better measured by whether one can get a job. The recession has been brutal on young people. Surprised? Politically-savvy economists wouldn’t be, since the political ruling class is bound to value the predictable votes of older people rather than the transient youth. But it is going to be hard to imagine a youthful tidal wave of support for any incumbant politician tied to the inabilitily to turn energy, education and effort into progress. Just how bad has it been?
Since November 2007, about 6 million people are out of work. But the picture has brightened recently for older Americans. The younger ones are still taking it on the chin, especially those who have just entered the workforce. Imagine a new family or a fresh college graduate, with no back-up assets, a new baby on the way, college debt and just trying to get going. The numbers from October-11 to November-11:
Age 16-19: +18,000
Age 20-24: -145,000
Age 25+: +405,000
Remarkably, jobs lost by teens were 25% of the jobs lost in the Great Recession, despite them being just 3% of the workforce. So we told them, “Stay in School! Go to college, as the economy has changed.” Now they are graduating from community colleges, some from four-year programs. Just in time for…nothing. Fewer jobs for this generation means the Generational Divide continues, unabated by recovery for the rest.
See the graph at the blog “Political Calculations.”
