Posted on 10/28/2015 5:24:56 AM PDT by smartyaz
Back in 1999, a quarter of all 25-year-olds lived with their parents. By 2013 this number has doubled, and currently half of young adults live in their parents home.
While the troubling implications for the economy from this startling increase are self-evident, and have been extensively discussed both here and elsewhere (and are among the key factors pushing both the US and global economy into secular stagnation), a just as important question is why are increasingly more young adults still living at home.
Labor Market and Higher Education
One potential reason for the increase in young adults living with their parents is the labor market. The authors highlighted research showing that individuals at the beginning of their careers often need more time to transition into the labor market. This is reflected in the unemployment rates of those between 21 and 27, which are often higher than for other age groups.
Earning a college degree can help with labor market outcomes, as young adults with a college degree are more likely to live independently. However, additional research has shown that the underemployment rate for recent graduates was about 40 percent during the Great Recession. Canon and Gascon noted: “An implication is that a significant portion of recent graduates were earning lower wages than what they should have been, given their education.”
Also affecting many young adults is that they started their post-education careers during a recession. Canon and Gascon discussed a study noting that those entering the job market during a recession pay a price for about a decade. They wrote: “That’s because they start work for lower-paying employers and slowly work their way up toward better-paying jobs.”
(Excerpt) Read more at zerohedge.com ...
um... giving people degrees because of their skin color doesn't count as “education”.
Employers know this, and refuse to hire these affirmative action morons who are completely illiterate.
Gee you think programs like H-1B work visas ( indentured servitude ) ‘helps’ recent grads?
“Back in 1999, a quarter of all 25-year-olds lived with their parents. By 2013 this number has doubled”
That’s not counting the number of 40 year-olds living with their parents in 2013. If they were living with their parents in 1999, where were they in 2013, still in college or unmarried with children?
they started their post-education careers during a recession.
There HAS BEEN NO RECESSION, they told us..................
Also, it seems nowadays everybody wants to start out making a monster salary right off the bat. The article states “they start work for lower-paying employers and slowly work their way up toward better-paying jobs.” like it’s a bad thing. I did it and IMO it helped build my character.....what there is of it. : )
My kids are expected to choose a degree that leads to a career (if they were not the college type, they would not go to college for the social life - they would learn a trade). They are expected to support themselves, to do honest work, to get married before having kids, to attend church weekly, to donate at least 10% of their income to charity, and to vote in every election for small government.
They are welcome to live with us for a few months after graduating or during a job transition, whether to save for a down payment or because money can be tight during those transitions, but so far none of my kids have made that choice. They take pride in being self-sufficient.
Does the article mention that other statistic about people not getting married. One big reason to move out is to “hook-up” but if fewer people are even interested, why move out.
My 25 year old, college educated daughter lives with me. We have the space, she has a good job and is saving money, she owns her own car, she pays me rent, and she is saving her money for a down payment on a house. The longer she stays here, the less debt she will have to assume when she gets her own place. I have no problem with it.
Funny thing when I got out of college I had no problem finding a well paying job, it paid something like $100 a day once a month and came with food, shelter and clothing.
It’s the Obama Economy, stupid.
More Good News/Bad News:
3Q GDP Another Reason to Delay Rate Hike
http://www.foxbusiness.com/economy-policy/2015/10/27/3q-gdp-another-reason-to-delay-rate-hike/?intcmp=bigtopmarketfeatures
The FED cries “Wolf! Wolf!” (Raise Raise!) But no one listens anymore.
Wwith all due respect, Wrong. Government is the biggest employer in the country and they ARE hiring the “educated” morons.
My daughter is 27 and her and her family moved in with us recently. Her and the husband can’t find decent paying jobs.
They say that as if it's a bad thing, even though it's probably the best career path for most people. The only real flaw is that too many people were seduced into blowing 4+ years of their young lives earning unproductive liberal arts degrees.
My oldest (22) is at home while she goes to a local college.
My middle (19) is moving up to a mountain town to take a full time job that includes an apartment in the compensation. This will let her work on her college via online classes.
My youngest (16) is still in high school and is trying to decide between the different services and which ROTC program he wants to join.
The point is to plan your work and work your plan.
To each their own. I left home at 20 and never looked back. I went without the 100 dollar a month phone plans and brand new cars... my first priority was always rent. I love my folks, but I absolutely do not want to live with them. That’s very important to me. Each situation is different, but for me personally I couldn’t leave fast enough.
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