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America's Youth Nonemployment Rate Is One Of The Worst Of Wealthy, Large Economies: Report

Terrible News For America's Youth
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By 

Associate Business Editor, The Huffington Post

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In the constant race to be the best America is falling behind other large, wealthy nations in at least one major category: Employing the nation’s youth.

In 2000, the United States had the lowest non-employment rate for 25- to 34-year-olds among countries with large, wealthy economies. By 2011, America had one of the highest youth non-employment rates compared to its peers, according to a New York Times op-ed by David Leonhardt, the paper’s Washington bureau chief.

How did the table’s turn on America’s youth? As unemployment soared during the Great Recession, young people -- with and without college degrees -- were forced to compete with more experienced candidates suddenly out of a job for very few openings. The result: Nearly half of the nation’s unemployed are under the age of 34, according to a report last month from public policy organization Demos.

And it doesn’t seem like things will get better for America’s young people any time soon. Demos found that the U.S. economy will have to create more than 4 million jobs before young adults will be employed at levels similar to those before the recession. In addition, 16.1 percent of Americans ages 18 to 29 were out of work in April, according to Generation Opportunity, a nonpartisan youth advocacy group.

Of those young people that are employed, many are working in jobs they’re overqualified for. More than 40 percent of those who graduated college in the last two years are working in a job that doesn't require their degree, according to an Accenture survey cited by CNNMoney. In addition, 284,000 college graduates had minimum-wage jobs last year.

And many are contending with high levels of student loan debt. Nearly 1 in 5 U.S. households had college debt in 2010, according to a Pew analysis from last year.

While the young people themselves are bearing the brunt of America’s youth unemployment problem, the rest of us will likely also have to face its consequences. Studies have shown a clear link between youth joblessness and a boost in crime rates.

CORRECTION: An earlier version of this post as well as the headline incorrectly stated that the U.S. had the highest youth unemployment rate of nations with wealthy, large economies. It has the highest youth non-employment rate -- which encompasses unemployed people, discouraged job-seekers, those in prison and those in school.

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Before You Go

9 Ways Americans Haven't Recovered
Unemployment(01 of09)
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When the economy was roaring in 2007, the U.S. unemployment rate was 5 percent. In January 2013 the unemployment rate was 7.9 percent. (credit:AP)
Income And Wages(02 of09)
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The U.S. median income fell to $50,054 in 2011, which is the most recent full year in which that data is available. That's down 8.1 percent since 2007. Wages also fell to a record-low 43.5 percent of the economy in 2012, according to the New York Times.Meanwhile, corporate profits are still booming. (credit:Shutterstock)
Number Of People On Food Stamps(03 of09)
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The number of Americans on food stamps surged to a record in 46 million in June 2012. That's compared to 26.5 million in 2007. (credit:AP)
Uninsured Americans(04 of09)
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More than 16 percent of Americans -- or 48.6 million people -- were uninsured in 2011, according to Kaiser Health News. This number is higher than what it was in 2007, when the share of uninsured Americans was 15.3 percent. (credit:AP)
Student Loan Debt(05 of09)
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The average student loan debt for a class of 2011 graduate was about $26,500, according to the Project on Student Debt data cited by the New York Times. Since 2007, when the average student debt was $23,349, student loan debt has increased for almost every demographic and the size of that debt has gone up as well, according to Pew. (credit:PA)
Homelessness(06 of09)
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In 2011, 644,067 Americans experienced homelessness on any given night, according to data from the National Alliance to End Homelessness cited by NBC News. Though that number is actually down 13 percent from 2007, the decrease is largely attributed to a boost in the number of programs to help keep the homeless off the streets. (credit:Getty Images)
Children In Poverty(07 of09)
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More than 16 million children -- or about 20 percent of American children -- were in poverty in 2011, according to the Census Bureau. That's up from nearly 18 percent of American children in 2007. (credit:Getty Images)
Homeownership(08 of09)
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We're on our way to becoming a renter nation. The homeownership rate in the 12 months leading up to May 2012 was 65.4 percent, according to Census Bureau data cited by CNNMoney. That's the lowest rate in 15 years. In the last quarter of 2007, the homeownership rate was 67.8 percent. (credit:AP)
Foreclosures(09 of09)
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There were 2.7 million foreclosures in 2011. That's up from 2.2 million foreclosures in 2007. (credit:AP)
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