Economic Crisis Hitting Young Workers Hard
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Since the current recession began in December 2007, some 1.3 million young workers have left the workforce, while the participation rate of workers ages 55 and older increased, according to a new report by the Economic Policy Institute (EPI).
This means many older workers are not retiring or are re-entering the labor force because they have suffered a sharp decline in retirement security, say authors Kathryn Edwards and Heidi Shierholz.
At the same time, workers ages 16 to 24—who face an unemployment rate of 18.9 percent, compared with 6.8 percent for workers ages 55 and older—are having a hard time finding jobs. Many who do find work end up in low-paying jobs with few or no benefits.
One major benefit that young workers lack is health insurance. One-third of young U.S. adults—nearly 13 million people—had no health insurance coverage in 2008, according to a government report released yesterday. In a survey of more than 9,000 people ages 20 to 29, the National Center for Health Statistics found that 30 percent of young adults had no coverage and were nearly twice as likely as adults ages 30 to 64 to be uninsured.
