For two months in a row, and quite frankly for the past five years, the unemployment report from the Department of Labor has been nothing short of pathetic. Although the unemployment rate is falling, giving the false perception that less people are out of work, millions have stopped looking for work and have dropped out of the labor force. But there's one subsection of the unemployment picture that doesn't get discussed enough: the young unemployed can't find jobs and haven't been able to for years.
The teenage unemployment rate sits at 21 percent, which is more than three times the national unemployment rate of 6.6 percent. CNSNews breaks down the numbers:
The teen unemployment rate went up in January to 20.7% -- from 20.2% in December-- and is now more than three times the national unemployment rate of 6.6%, according to the latest data from the Bureau of Labor Statistics (BLS).
Then of course there's the millennial generation. According to Generation Opportunity, the unemployment rate for 19-31-year-olds is 15.8 percent.
The declining labor force participation rate has created an additional 1.922 million young adults that are not counted as “unemployed” by the U.S. Department of Labor because they are not in the labor force, meaning that those young people have given up looking for work due to the lack of jobs.
The effective (U-6) unemployment rate for 18-29 year olds, which adjusts for labor force participation by including those who have given up looking for work, is 15.8 percent (NSA). The (U-3) unemployment rate for 18-29 year olds is 11.3 percent (NSA).
In addition, a new report shows nearly one in four 26-year-olds are living at home with mom and dad.
A ten-year survey of millennials reveals that almost one in four (22.6%) 26-year-olds are still living with their parents.
The U.S. Department of Education report confirmed that, if you are tired of living with Mom and Dad, then do your homework and stay in school. According to the survey titled “Where Are They Now," education makes a difference: generally those with more schooling were less likely to be living at home. The study shed some light on how older millennials have been faring during the Great Recession.
According to a Pew Research analysis of the 2012 data, lower levels of employment, an increase in college enrollment, and a decrease in young people getting married are major factors in the increase of millennials living at home.
By the time Barack Obama leaves office, millennials will have spent nearly a decade and prime working years, jobless. Considering 2/3 of lifetime wage growth occurs in a person's 20s, the young unemployment trend is alarming.
Dr. Meg Jay, author of a new book called The Defining Decade, says that a significant portion of your lifetime earning potential happens in your 20s, making it critical to get out there and get working. She estimates that as much as two-thirds of lifetime wage growth happens during just the first 10 years of a career. Once you hit your 40s, salaries will peak or plateau, making it hard or impossible to catch up if you only start getting serious about your career in your 30s.