Generation unemployed and unemployable

“The employment-population ratio for 16-24 year-olds started declining in 2000—just as we were all getting computerized and networked. Meanwhile the employment-population ratio for those 55 and older has been increasing since 1993. In the Great Recession, youth employment has been devastated and mature worker employment has hardly been affected at all. If these trends are being driven by skills, conventional wisdom must be wrong about what skills are needed and the importance of education. “

And here comes the punchline-

“We’ve been emphasizing education and skills development in America for decades, and there is nothing apparent in the current emphasis that seems likely to change our output of skilled workers. Nor does the historical record indicate it would contribute much to domestic job creation if we did have more skilled workers. Skilled Chindians [workers in China and India] will still be cheaper, and young Americans will still be living with their parents as long as that’s true.”

So, despite the great number of young educated workers in need of jobs, the relative price of youth labor just isn’t cheap enough for American capitalists. But if it’s a price argument, then why are higher wage, older workers being disproportionately unaffected? Obviously, there’s much more to the story than just relative prices of labor, although I’m wary of making any narrowly generational arguments since it’s in both older and younger workers’ interest that graduates have jobs.

EPI recently published a briefing paper on “The Class of 2011″, showing high school graduates as by far entering the worst job market since the Great Recession began, swiftly followed by recent college graduates that often end up in low-wage jobs that don’t require a degree in the first place. Importantly, the paper debunks the myth that college grads are “sheltering in school”, by extending their graduation date or enrolling in graduate programs.

But what makes the situation even worse for the young unemployed and unemployable? No safety nets, and for college grads, high debt.

“Unsurprisingly, graduates typically find themselves strapped with debt: In 2009, 56% of public school students graduated with debt averaging $20,467, and 65% of private school students graduated with debt averaging $26,728.

High debt underscores why young workers need a safety net. Without significant prior work experience, there is little chance new entrants to the labor market have accrued savings, and young graduates in particular are likely to have substantial debt. In other words, it is very unlikely for young workers to have an individual safety net.”

It looks like the youth reserve army of unemployed, unemployable debtors will never catch a break.