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Why Are Half Of All 25-Year-Olds Living With Their Parents? The Federal Reserve Answers
Zero Hedge ^ | 10/27/15 | Tyler Durden

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 ...


TOPICS: Business/Economy; Government; News/Current Events
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1 posted on 10/28/2015 5:24:56 AM PDT by smartyaz
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To: smartyaz
Cattrtrpture
2 posted on 10/28/2015 5:25:20 AM PDT by smartyaz
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To: smartyaz
quote “a significant portion of recent graduates were earning lower wages than what they should have been, given their education”

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.

3 posted on 10/28/2015 5:28:23 AM PDT by TexasFreeper2009 (You can't spell Hillary without using the letters L, I, A, & R)
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To: smartyaz

Gee you think programs like H-1B work visas ( indentured servitude ) ‘helps’ recent grads?


4 posted on 10/28/2015 5:29:59 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: smartyaz
Overturning the Griggs vs. Duke Power decision would help this situation a lot.
5 posted on 10/28/2015 5:31:44 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: smartyaz

“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?


6 posted on 10/28/2015 5:33:14 AM PDT by equaviator (There's nothing like the universe to bring you down to earth.)
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To: smartyaz

they started their post-education careers during a recession.


Whoa,

There HAS BEEN NO RECESSION, they told us..................


7 posted on 10/28/2015 5:33:25 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: TexasFreeper2009

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. : )


8 posted on 10/28/2015 5:34:07 AM PDT by V_TWIN
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To: smartyaz

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.


9 posted on 10/28/2015 5:36:29 AM PDT by Pollster1 ("Shall not be infringed" is unambiguous.)
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To: smartyaz

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.


10 posted on 10/28/2015 5:38:42 AM PDT by DungeonMaster (Now I understand why my grandparents quit voting.)
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To: V_TWIN

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.


11 posted on 10/28/2015 5:40:53 AM PDT by TheConservator ("I spent my life trying not to be careless. Women and children can be careless, but not men.")
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To: DungeonMaster

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.


12 posted on 10/28/2015 5:46:01 AM PDT by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: smartyaz

It’s the Obama Economy, stupid.


13 posted on 10/28/2015 5:48:03 AM PDT by subterfuge (TED CRUZ FOR POTUS! TED CRUZ FOR POTUS!)
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To: smartyaz

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.


14 posted on 10/28/2015 5:49:08 AM PDT by citizen (America is-or was-The Great Melting Pot. JEB won't even speak American in his own home. NO Bush!!)
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To: TexasFreeper2009

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.


15 posted on 10/28/2015 5:53:02 AM PDT by subterfuge (TED CRUZ FOR POTUS! TED CRUZ FOR POTUS!)
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To: smartyaz
“That’s because they start work for lower-paying employers and slowly work their way up toward better-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.

16 posted on 10/28/2015 5:55:32 AM PDT by eclecticEel ("The petty man forsakes what lies within his power and longs for what lies with Heaven." - Xunzi)
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To: TexasFreeper2009
“a significant portion of recent graduates were earning lower wages than what they should have been, given their education”

And what they should have been was determined HOW, exactly??


17 posted on 10/28/2015 6:02:47 AM PDT by Buckeye McFrog
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To: subterfuge
Government is the biggest employer in the country and they ARE hiring the “educated” morons.

Got that right. Graduates with STEM degrees scrambling to pay their loans while all of those Political Science and Womyn's Studies grads get gubbermint jobs regulating their lives.


18 posted on 10/28/2015 6:04:16 AM PDT by Buckeye McFrog
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To: smartyaz

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.


19 posted on 10/28/2015 6:07:54 AM PDT by taxcontrol ( The GOPe treats the conservative base like slaves by taking their votes and refuses to pay)
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To: smartyaz

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.


20 posted on 10/28/2015 6:10:28 AM PDT by conservativegamer
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