Gen Z hit hard by pandemic, facing higher than average unemployment rates nationwide

“Millions of workers of all ages have suffered devastating job losses in the current recession, but the economic impact on young workers has been even more intense,” Elise Gould, senior economist with EPI, said in a statement, according to CNBC News. According to CNBC News, even prior to the pandemic Gen Z identifiers had a higher than average unemployment rate of 8.4% in April, May, and June 2019. However, that number increased to over 24% in spring 2020 as the pandemic swept across the country. Comparatively, for those over the age of 25, the unemployment rate grew from 2.8% to 11.3% this year.

According to an analysis by the Brookings Institution, 16- to 29-year-olds represent under a quarter of the whole labor force, yet “they accounted for about a third of the rise in the unemployment rate between February and April of this year.” This is due to the fact that young workers are most present in industries affected by COVID-19 shutdowns in addition to there being little to no job prospects for those who have just graduated amid the pandemic.

“The job prospects for those seeking employment have been particularly bleak,” Gould said. If the current pattern continues, younger workers will consistently struggle to find jobs even as the economy recovers. Refinery 29 noted that while many believe these young adults have time to recover, studies show that millennials, the generation before Gen Z, are still playing “catch up” after the last economic crash—the Great Recession.

According to the EPI, underemployment for young workers contributes to a ripple effect in which individuals stay longer in lower levels of their careers. Consequently, as millennials who struggled through the Great Recession stay in entry level positions, fewer opportunities are available to Gen Z workers. This cycle continues for generations. “The impact of a deep recession is devastating for young workers in the short and long term, but the benefit of full employment for young workers would be enormous,” said Melat Kassa, an economic researcher. “Any hope of a strong and equitable recovery must center young workers.”

Additionally, many young adults are left out of relief efforts due to being listed as dependents on their parents’ taxes, but these same parents are likely to have not received the extra $500 for dependent children because the age cutoff was 17. This creates an even greater struggle for individuals in that age group who are unable to find jobs or support themselves.

Not only are Gen Z individuals at higher risk for job loss, but those who identify as people of color within Gen Z are at higher risk. Gould and other researchers have found that like the disproportionate rate of COVID-19 infections impacting Black and brown lives, unemployment rates among people of color are disproportionately higher than their white counterparts. If 35% of Gen Z are underemployed, studies show that number is at least 5% higher for those who identify as people of color. For Black and Asian men, that number increases to between about 44-46%, Refinery 29 reported.

It is true that unemployment rates for young adults have been consistently higher than those considered older or “Baby Boomers.” However, COVID-19 has widened that gap greatly and increased rates by almost 20%. As a result, many young adults are taking any job they can find whether or not it be temporary, but this isn’t a long-term solution. Without valuable work experience, this cycle will continue and not allow individuals to progress. For the economy to flourish, policies must be created to address issues for Americans at all age levels. Until we see a systemic change made at all levels, not only will younger people face the consequences of decisions made, but people of color will continue to face obstacles at rates that differ from their white counterparts.