Millennials have hardest time in pandemic

The economic consequences of the economic crisis following the coronavirus pandemic will hit the millennials hard, who as an age group are economically disadvantaged and extremely indebted.

This is the second gigantic downturn in the life of every millennial, and it could lead to a decline in their wealth relative to previous generations. Those born in the years 1981-1996 as a professional group have not yet shaken off the experiences of a very difficult entry into the labor market during the previous financial crisis.

According to the Federal Reserve Bank of St. Louis, 4.8 million millennials lost their jobs in the US as a result of the pandemic. This group has suffered more losses than the previous two generations.

The unemployment rate among millennials is 12.5 percent. It is higher than in the case of generation X (born 1965-1980) and baby boomers (1946-1964).

Starting a professional career and achieving the financial independence that allowed previous generations to marry, buy a house and have children is definitely more difficult for millennials. Even the most educated millennials are hired at lower wages than older graduates. The tendency to work in less-paid jobs has left a generation lagging behind in terms of income. As a result, millennials have less wealth than Generation X and boomers when they were the same age, and about a quarter of millennials' households have more debt than assets.

Even before the pandemic started, one in six millennials could not cover the extraordinary expenses of $400; this proportion is about one in eight of all Americans.

(WSJ)