More than half of all Americans are millennials, Gen Z, or younger. These are the most racially diverse generations in the history of the nation. Our economic viability depends on their access to early work experience, civic engagement opportunities, educational pathways, and jobs that allow them to earn an income while they learn and build careers. In contrast, low wages, insufficient hours, and involuntary disconnection from work drive high poverty rates that dampen young people’s prospects and harm the whole country. Moreover, disconnection from school and work increases after high school – the problem does not naturally resolve itself. One analysis found that one percent of 18-year-olds, were disconnected, rising to 5% at age 20 and 12% at age 26.
- According to the Brookings Institution’s 2019 report Meet the Low-Wage Workforce, people ages 18–24 account for 24 percent of all low-wage workers. More specifically, 7 million of these workers are not in school and do not have a post-secondary degree, leaving them with very limited job prospects. They have median hourly wages of $8.55 and median annual earnings of $12,700. Many young people rely on these low wages to meet their own basic needs, support their families, or pay for their education.
- In 2019, prior to the COVID-19 pandemic, the poverty rate for youth ages 18–24 was 13.3 percent—well above the rate of 10.5 percent among all adults.
- Among young people who were unemployed in July 2020, over half were out of work due to the pandemic.
- Millions of young adults carry overwhelming education debt, which threatens their economic stability far into their futures. Disparities in student debt load also perpetuate long-standing racial wealth gaps.
