Millennials grew up focused on extracurriculars and achieving success (but as the latest issue of New York magazine explains, they’ve faced some harsh realities as they enter the career world during the recession. Although times are bleak and many post-grads are struggling to support themselves, they’re still a determined and hopeful group. They may be facing steep unemployment rates, but they find happiness in other ways besides work. They’re less focused on material possessions and value the culture and lifestyle they have where entertainment is easily accessible and they can always be connected. Most of all, they’re tough and know they’ll be alright).
Being young is supposed to mean you have the luxury of time. But in hard times, a few fallow years can become a lifetime drag on what you earn, sort of the opposite of compound interest. Because the average person grabs 70 percent of their total pay bumps during their first ten years in the workforce, according to a paper from the National Bureau of Economic Research, having stagnant or nonexistent wages during that period means you hit that springboard at a crawl. Economist Lisa Kahn explained to The Atlantic in 2010 that those who graduate into a recession are still earning an average of 10 percent less nearly two decades into their careers. In hard, paycheck-shrinking numbers, the salary lost over that stretch totals around $100,000. That works out to $490 or so less a month, money that could go, say, toward repaying student loans, which for the class of 2009 average $24,000. Those student loans (the responsible borrowing option!) have reportedly passed credit cards as the nation’s largest source of debt. This is not just a rotten moment to be young. It’s a putrid, stinking, several-months-old-stringy-goat-meat moment to be young.
Earlier generations have weathered recessions, of course; this stall we’re in has the look of something nastier. Social Security and Medicare are going to be diminished, at best. Hours worked are up even as hiring staggers along: Blood from a stone looks to be the normal order of things “going forward,” to borrow the business-speak. Economists are warning that even when the economy recuperates, full employment will be lower and growth will be slower—a sad little rhyme that adds up to something decidedly unpoetic. A majority of Americans say, for the first time ever, that this generation will not be better off than its parents.