Unemployment, Student Debt Poses Huge Risks For Young People, Economic Future

Baseline Scenario:

Even after a slight boost in jobs growth, unemployment for 18-24 year olds stands at 24.7%. For 20-24 year olds, it hovers at 15.2%. These conservative estimates, using the Bureau of Labor Statistics U3 measure, do not reflect the number of marginally attached or discouraged young workers feeling the lag from a nearly moribund job market.

Read the whole story: Baseline Scenario

Comments

[Chicago Barrister]

02:49 AM on 12/01/2010

This article hits too close to home for me. I had zero student loans from undergrad and took out very large loans for a top 50 law school on the basis that average starting salaries were 87,000/yr and 95 percent employment within six months of graduation. (According to the school).

What I didn't know, and wish I did, is that those statistics are only based on those who respond to a post-graduate survey (and only those few who land good jobs tend to respond) and the salary average is skewed by a very small group making a very large salary, with the rest making 40-50k per year. In fact, almost nobody makes 80k/yr upon graduation. But these fraudulent statistics are what U.S. News Reports and others use to create the school rankings, so there is a massive vested interest to keep these numbers pumped up.

Meanwhile, the American Bar Association who should be stepping in to help resolve this problem keeps accrediting new law schools. The result is a massive increase in graduates taking out ever increasing amounts of non-dischargable student debt entering a legal job market that has completely collapsed. The oversupply drives down wages for everyone in the field, and the graduates who worked hard for 7 years of college, and passed the bar exam are left with 150K in loans and no career options that can support that level of debt.

Something must give.

[AnastasiaWilson]

10:20 PM on 11/23/2010

Wow...thanks for cross-posting Huffington Post. I hope that the attention recent articles on student debt, for-profit colleges, etc. can raise some awareness on these issues. The inevitable structural problems that may occur due to the deteriorating human capital for young folks, along with the mounting debt and subsequent "indentured servitude", present a serious social cost to everyone (all ages).

[mamapower]

07:48 PM on 11/23/2010

The housing plunge was nothing compared to whats about to come with these criminal student loans.

[macrophone]

08:43 PM on 11/23/2010

absolutely agreed. the university system has become a bloated, capitalistic enterprise funded by unregulated, haphazard borrowing.

[Chicago Barrister]

02:31 AM on 12/01/2010

Completely agree. As one of many struggling to repay huge student loans, I am glad this is finally getting the national attention it deserves. As a society we are forcing some of our smartest and hardest working citizens, those who should be working to solve tomorrow's problems, to live in their parent's basement and forgo marriage, children and any hope of financial security. Many top graduates unable to find work would have been better off spending a few years in prison (or at least just playing video games) than working hard to educate themselves. What a perverse set of incentives...

[Victoria1597]

02:30 PM on 11/23/2010

The signs of why you are a third world country.
1. Corruption 2. Unwillingness to protect you own people 3. Greed 4. Corporatism 5. Gridlock government 6. Destruction of public education 7. Attacks on attempts to have a middle class 8. Exodus of the smartest people leaving the country 9. Media control used to dis or misinform the public. I used to read about the third world and now I live in it. Go back and look at all the old textbooks written in the 1960's and 1970's and tell me you don't see us as a country in the same place. I honestly haven't read Ms. Huffington's book yet but I've also seen the signs of us being part of the third world and I've been blogging it for a while.

[Victoria1597]

02:24 PM on 11/23/2010

One of the basic reasons the third world is the third world and we will be there shortly is the flood of the brightest people leaving those countries to come here. Or at least they used to. Now, we will find our young people trying to leave here and going to places like China and Vietnam to work. So one more reason why I believe we are a third world country now.

[macrophone]

08:46 PM on 11/23/2010

so, you think the US is a third world country?! that's an insult to the unfortunate souls who actually endure third world citizenship. i recommend you travel some more.

[Victoria1597]

02:12 PM on 11/23/2010

Think of it another way, does debt really matter if you are jobless and homeless and hungry with no prospects but charity in the next 2 to 10 years?

[Victoria1597]

02:11 PM on 11/23/2010

I don't know what a lot of you thought as you voted against your own self interests and the interests of your children. But once it starts you won't be able to stop it. And then you'll blame the dems again when they are left with trying to keep millions from starving. Then the right will start it all again blaming the dems for spending. Don't you see this cycle?

[USMCR]

04:39 PM on 11/23/2010

It all could have changed when the dems were given power. There was a historic chance for change in this country. And within 24 hrs Pelosi pzzed it away with her... Off the table press conference. What people still don't seem to get... it it wasn't just investigating Bush that was "off the table"... It was investigating ANYONE who is wealthy or "connected"

Its not to late to recall Pelosi and send Washington a message... BTW... we can all thank California for re-electing the "status quo" Pelosi.

So before you lament how bad our government is and what a state this country is... DON"T forget there have been opportunities to TURN IT AROUND. And people like Pelosi and Look the other way Obama have made sure it didn't happen.

[Victoria1597]

02:09 PM on 11/23/2010

There are two lost generations, the one coming up 30 years or less who have no jobs to look forward two and the parents who won't be able to help them because business has gutted the retirement plans and government the social programs. I am 100% unless they both figure it out in the next 2-6 months the greatest depression is looming large and if there is any way the right wing can help it along they will.

[mrcontinental]

10:11 AM on 11/23/2010

This is the true "lost generation". If they are evening speaking to us 30 years from now I'll be shocked after the mess we've left for them.

[Victoria1597]

02:13 PM on 11/23/2010

I just commented a lot on this issue and I agree with you 100 %. But as I said there really are two generations lost, the younger one and the older one who no longer have any savings to help them. Or maybe a place to live or food to eat.

[SangZe]

08:48 AM on 11/23/2010

Thank you, Mr. Bush, and your teabagger friends.

[USMCR]

05:01 PM on 11/23/2010

We are where we are today, because people don't do their homework and don't HOLD EVERYONE accountable without regard for party affiliation.

Was Bush responsible for the state of affairs this country is in today? ABSOLUTELY, he was HANDS DOWN the most corrupt, criminal and guilty president in the history of the United States. And the reason he was able to get away with all of that corruption was because non of the checks and balances that have served this country for over 200 years where followed. Pelosi sat by and watched for 4 years and did nothing. She had nothing but excuses while she focused only on the 08 election. She REFUSED to do her job to impeach Bush or even to investigate the most corrupt presidential administration in the history of this country. Se REFUSED to do her job because it MIGHT jeopardize the dems chances in the 08 election. She LET EVERYTHING slide and rolled the dice with our lives, our economy, and our future. and SHE WON. And within 24 hrs of the election she held a press conference and stated IMPEACHMENT WAS OFF THE TABLE And with that she excused ALL OF THE CRIMES committed by the Bush administration, she set a new PRECEDENCE of how much corruption we are all supposed to "put up with".

Say what you want about Bush, or teabaggers . But until the American People hold EVERYONE accountable for their grievous and derelict "public service" nothing will change

[brooklyncitizen]

02:24 AM on 11/23/2010

THe story of this nation will be a crash and burn.Just a bit over 200 years and look at where we are...it's all about the money here.

[brooklyncitizen]

02:21 AM on 11/23/2010

I would move abroad and forget the US.

[drbslurp]

06:50 AM on 11/23/2010

Bye!

[DebofMD]

01:53 AM on 11/23/2010

To have some of these other articles tell it, I thought it was only people 40 and over having trouble finding decent jobs.

[laaambchop]

11:02 AM on 11/23/2010

Maybe we shouldn't rely on articles for reality. I came across a great quote the other day: there is no truth, just reality.

Everyone seems to have a problem finding a decent job now.

[DebofMD]

12:32 PM on 11/23/2010

Thanks for that; very true.

[kinoptikation]

10:08 PM on 11/22/2010

Not everyone gets to be an astronaut when they grow up
http://www.despair.com/potential.html

[Jasmine Mar]

09:02 PM on 11/22/2010

There seems to be some time-line inconsistencies with this article.

generation Y is currently 18-30
green jobs (if enacted RIGHT NOW) would take (an unrealistically rosy estimate of) 10 years.

No, this will not save generation Y. Neither will throwing more govt money at the college system right now. These solutions will help GENERATION Z.

If the USA actually cared a lick about generation Y (which it does not) it would have been forward looking; nurturing this generation's future 10-15-20 years ago. As a country America no longer values creativity or innovation. My advice to Y is to shop those creative dreams and innovating new products you have in your heads with OTHER countries. You'll be surprised at the positive responses you get from countries trying to advance themselves. America is only is interested in advancing the interests of the handful of all powerful monopoly corporations.

Vote with you feet, kiddies, it's your best weapon!

[Victoria1597]

02:22 PM on 11/23/2010

The strategy of the right is short sighted and flawed but if you try and quantify it then it really shows how deep and damaging long term these policies are. I would say if I were young I'd try and get educated and then work in China because my own country certainly didnt care about me. But I doubt if they will work well unless you are unusually gifted because there are almost 7 billion people living there and unlike business in the USA, the Chinese will protect their own interests. And so will the rest of the world. Our own government will work hard protecting China but not protecting their own people. That's the basic problem other than greed and corruption. A terrible combination.