The living arrangements of young adults seem to have come unhinged from labor market conditions, as they are becoming less likely to live on their own as the economy improves from the financial crisis. Five years into the economic recovery, full-time employment is up and wages are starting to rebound. But despite these improvements in the labor market, more millennials are living with their parents than they were during the worst period of the recession, according to a recent Pew Research report.
Comment: The fact is that many young people simply aren't able to be self-sustaining in the current economic climate. Most American households are significantly worse off than they were before the recession; incomes have fallen, wages have stagnated and student loan debt has soared. Those glowing unemployment numbers don't reflect a true picture of the labor market as many people are still struggling with extended periods of unemployment, and only 44 percent of people in the US are employed for more than 30 hours per week. To add to the uncertainty, a majority of people are now fearful of another economic downturn.
In 2010, 69 percent of 18- to 34-year olds were living on their own, compared to 67 percent in the first third of 2015. Over that same period, the share of millennials living with their parents increased from 24 to 26 percent.
This trend isn't afraid of gender discrimination either. Young women are more likely to live independently than their male counterparts, with 72 percent of millennial women living on their own compared to 63 percent of men.
These brighter economic trends aren't matched by social indicators. For example, 18- to 34-year-olds in 2015 are starting households at a rate lower than they were previously, with 25 million young adults heading households now compared to 25.2 million in 2007, before the recession began. This statistic is all the more worrying considering there are nearly 3 million more adults in this age group now than in 2007.
Seeing as young adults are a growing demographic group, recently outnumbering baby boomers, the lack of demand from millennials for their own home could have important negative consequences for the nation's housing market, which could, in turn, spill over to other ancillary purchases such as furnishing and telecom, according to the report.
Young adults who are college-educated have made the greatest rebound from the ravages of the Great Recession, with 86 percent living independently of their families, compared to the base rate of 67 percent among the general population. This number has also slid since the recovery started, however, as 88 percent of college-educated young adults were living on their own in 2010.
Every high school in this country should teach a required course on how to save money and, more importantly, regarding the power of compound interest.
And every parent should teach their children these same two things.
The trouble is that most parents nowadays are themselves unaware of the power of compound interest. This entire generation of parents and especially grandparents has largely bought into the matrix-controlled “get-rich” stock market scam at one level or another.
Many have taken a very cold bath. Some have taken several. And still, many cling to some fantasy that they too will be a millionaire someday if they just keep their head low and play by the matrix rules. It defies logic, not to mention indicates a moral bankruptcy unprecedented in humanity’s span of time on this planet.....continued
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