Millennials Struggle to 'Accumulate Wealth' Amid Financial Crisis and COVID-19... "Employment and Marriage Are Not Easy"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The millennial generation (born 1981?1996) has fallen further behind economically after experiencing two major crises: the global financial crisis and the COVID-19 pandemic, the Wall Street Journal (WSJ) reported on the 9th (local time).

WSJ reported that millennials, who were already burdened with debts such as student loans and struggled to find stable jobs due to the global financial crisis, have found it even harder to accumulate wealth compared to previous generations because of the impact of the COVID-19 pandemic.

According to May data from the U.S. public opinion research organization Pew Research Center, the unemployment rate for millennials was 12.5%, higher than that of Generation X (born 1965?1980) and baby boomers (born 1946?1964). WSJ analyzed that the high unemployment rate among millennials is due to the sectors most affected by COVID-19 being industries like leisure, which have a high proportion of young workers.

WSJ observed that millennials are realizing it is increasingly difficult to find jobs that allow them to marry, buy homes, and raise children as previous generations did, or to achieve economic independence. Studies have shown that highly educated millennials have lower employment rates compared to earlier college graduates, and their incomes have also decreased.

Jesse Rothstein, a professor at UC Berkeley and former chief economist at the U.S. Department of Labor during President Barack Obama’s administration, expressed concern, saying, "This is a sign that something is wrong with the way the economy works. It is becoming increasingly difficult for people to find a foothold."

According to the Federal Reserve Bank of St. Louis, millennials have less wealth compared to previous generations at the same age. In a financially vulnerable state, one-quarter have more debt than assets. Additionally, before the pandemic, about one in six millennials could not cover an emergency expense of $400, a higher proportion than the overall U.S. population (one in eight).

Experts predict that the hardships faced by millennials starting their social lives during such a difficult recession will not disappear. Demographers have expressed concern that some millennials are choosing cohabitation over marriage and are delaying or forgoing childbirth.