Its a vicious cycle. It reinforces the idea of hopelessness in the youth which fuels dependency and bitterness and the result is that many youth will simply drop out and refuse to be productive so the idea that they will fit the bill is not taking into account natural human response. People don’t work well when there is no reasonably immediate reward for them and with the young it is even more the case.
Another opinion I've heard expressed is that most people NEVER become stable workers if they haven't had to by a certain age. That's significant, because this generation growing up over the past decade or so has significant numbers who haven't had stable work and haven't had to figure out how to survive on their own.
Keeping them on their parents health insurance and in schools beyond anything that makes sense is just making it worse. There are exceptions, of course, but they could easily become "the useless generation" or "the dependent generation"