Youth Unemployment for 16-19 Year Olds Reaches 14% Amid Gen Z's Deep Economic Pessimism

A recent social media post by "Rational Aussie" has ignited discussion regarding Generation Z's perception of economic hardship, stating that "Most of Gen Z doesn’t give a flying #&$K about a 'recession'. Their entire lives have been a recession." This sentiment is corroborated by recent economic analyses highlighting significant challenges faced by the youngest workforce, including high youth unemployment rates and stalled career progression.

Data from Oxford Economics reveals a stark reality for young job seekers, with the unemployment rate for 16- to 19-year-olds reaching 14%, and 19- to 24-year-olds facing approximately 9% unemployment. This contrasts sharply with the overall U.S. unemployment rate hovering around 4%. Experts describe a "no-hire no-fire" labor market that disproportionately impacts new entrants, leading to what some, like the Economic Times, term a "job recession" for Gen Z.

The tweet further emphasizes a lack of "upwards mobility in their career" and "very difficult to own shelter." This aligns with findings that upward mobility has stalled, and wage growth has fallen most sharply for workers aged 16-24. Moreover, the median age for first-time homebuyers has risen to 38, compared to late 20s in the 1980s, while Gen Z carries 26% higher credit card balances than a decade ago, adjusted for inflation.

Economists from Oxford Economics also report an additional one million young adults aged 22-28 living at home with their parents compared to pre-pandemic trends, resulting in an estimated $12 billion annual drag on consumption. This economic malaise contributes to a pervasive pessimism among Gen Z regarding their financial prospects, with many feeling that their generation is being overlooked in favor of broader economic metrics.

While traditional economic indicators, such as GDP and the stock market, may not always signal a formal recession, Gen Z's lived experience of economic precarity is undeniable. As "Rational Aussie" concludes, this ongoing struggle for the younger generation could lead to significant long-term societal implications for what they refer to as the "ruling class."