A new era is underway. The Baby Boomer and Generation X are on their last legs, making way for Gen Y-ers, otherwise known as Millennials. These younger people, born from 1977 to 1995, are currently the largest living generation (1.8 billion out of the 7 billion people in the world). Much has been said about them, but not everything is positive. For instance, many say that their generation is the most financially unstable.
Broke Millennials At a Glance
Lending companies, including Rapid Loans, have likely seen an onslaught of young people borrowing from them. It’s because they all need that extra financial cushion due to an unstable job market.
Young Invincibles, an activist group, did a research on this with the American youth as an example. Using census data, their team found out that the annual income has fallen in four of the five biggest employment sectors. These include retail (9.9 percent), manufacturing (2.87 percent), and professional and business services (4.28 percent). The leisure and hospitality niche took the biggest hit, with a 14.65 percent decline.
In short, Millennials are actually earning less than what they’re really owed. In fact, they’re earning much less that several can’t even afford to take out loans. Because of this, experts predict that Gen Y-ers will be working until they’re 75 years old, just to be able to pay back what they owe.
Are Millennials in Deep Trouble?
It’s not that young people have suddenly become financially irresponsible. It’s just that they matured at what’s probably the worst possible time. Many Millennials may graduate from college with little debt, but they’ll tend to have trouble finding jobs in their chosen fields. They’re left with the choice of being underemployed or completely unemployed; of course, the former is always the better choice.
But, the problem that young people face today is hardly new. Boomers who started working in the 80s faced a similar situation due to various recessions. There’s still a noticeable difference in the financial landscape, however. Older adults got paid as much in today’s terms when they were young, but they didn’t have to overstretch their budgets back then. Millennials have a tougher time because of student loans, mostly. Here’s to hoping that the situation changes for the better — permanently.