Young people are bearing the weight of the financial crisis caused by COVID-19 and will continue to suffer from the financial fallout for years to come, recent reports suggest.
People between the age of 15 and 25 are 2.5 times more likely to have become unemployed due to the pandemic than people ages 26 to 64, according to a report released by the Organisation for Economic Cooperation and Development. This increase in unemployment has forced many young adults between 18 and 29 to move back in with their parents. In turn, now the majority of young people in that age group are living with their parents, according to Pew Research Center.
Now, 52 percent of young adults are living with their parents. This is the first time since the Great Depression that the majority of young adults were living at home, according to Pew. The South leads all regions in the percentage of 18- to 29-year olds living with at least one parent between February and July 2020. The South saw a 7% swing during that compared to the Midwest and West, which experienced a 5% increase and Northeast, which saw a 4% increase, the study shows.
The number of young adults in school also declined. The share of 16- to 24-year-olds who are neither enrolled in school nor employed has more than doubled since February. That percentage few 17 points to 28% in June.
The number and share of young adults living with their parents grew across all major racial and ethnic groups, men and women, and metropolitan and rural residents, as well as in all four main census regions. Growth was sharpest for White adults and the youngest adults (ages 18 to 24).
This sudden loss of young people’s jobs and sometimes homes has caused a mental health crisis for young people, as the OECD report showed young people and youth organizations are most concerned about young people’s mental health. The report also showed young people have experienced more emotional distress due to the pandemic.
In the report, OECD encouraged governments to seek young people’s input in order to strengthen public institutions to ensure more economic and social fallout can be prevented in the future.
“The exposure to such shocks has long-lasting consequences for their access to decent employment, health and other dimensions of well-being and the opportunities ahead. Strengthening the resilience and anti-fragility of public institutions and governments against future shocks is crucial to ensure the well-being of today’s young and future generations,” OECD said in the report.