By Mary Ann Milbourn The Orange County Register September 4, 2010
Young Californians ages 16 to 24 have been hurt more by the recession than any other age group and likely will feel its negative financial impact for years, the California Budget Project reported today.
"The Great Recession has been particularly devastating for 16-to-24-year-olds who are not enrolled in high school or college - those most likely to want to work," said the CBP in its Labor Day analysis of California's job market. "The share of these young Californians who were working dropped precipitously during the downturn, more than for any other age group."
In fact, last year, for the first time on record, a smaller share of out-of-school 16-to-24-year-olds were working than California workers approaching the traditional retirement age, the report said.
But the recession also has hurt young people who are college grads even though a degree has typically been an advantage during down times.
The report said the employment rate for young Californians with a four-year degree dropped from 85.7 per cent in 2006 to 77.3 per cent last year. That's the lowest rate on record.
Both high school graduates and college graduates found their skills underutilized, meaning they were not working but wanted jobs or were working part-time but wanted full-time positions.
Among high schools grads, 43 per cent were underutilized in 2009. Twenty-five percent of college grads weren't working up to their skill level, up from 10.7 per cent in 2006, the CBP reported.
"Young adults who are unable to find work after graduating, or who can only find dead-end jobs, delay the acquisition of skills and experience necessary to advance in their desired fields of work," said the report. "As a result, they will likely be less competitive candidates for jobs in the future, which could diminish their employment prospects even after the labor market recovers."
Graduating during a recession can have long-term consequences, noted the report. One study found that 17 years after white men graduated during the 1982 recession their earned hourly wages were 20 per cent lower, on average, than those who graduated in 1989.
"These findings suggest that some college graduates who enter the job market during recessions are unable to fully catch up to their peers who graduate when the economy is stronger," said the report. "Given that the Great Recession was more severe than prior downturns, its adverse impact on young adults' earnings may be even greater and longer-lasting."
Jean Ross, CBP's executive director, said the only real solution for younger workers is for the economy to get going again.
She said policymakers can also help by insuring that community colleges and other programs are available for young people to get the skills they need or upgrade their skills so they can compete when the economy bounces back.
http://www.ocregister.com/articles/recession-264862-young-impact.html
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