Today’s young adults, referred to as
Millennials born between the early 1980’s and 2000’s, are coming of age in
an economy unlike any other. The macroeconomic conditions of the Great Recession
from approximately 2007 to 2011 systematically undermined Millennials’
financial health by limiting employment opportunities, stagnating income
growth, reducing net worth, and increasing reliance on debt. Millennials
entered a labor market with limited opportunities and saw higher unemployment
rates than the rest of the population. Fewer Millennials entered the labor market than young adults from any preceding
generation and their unemployment rate was roughly 15 to 17 percent at the
height of the recession—5 to 7 percentage points higher than the average
unemployment rate for the rest of the population. They also experienced
diminishing returns for participating in the labor market, earning 6 percent
less per paycheck than in previous years.
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This research was supported by a grant from the FINRA Investor Education Foundation. All results, interpretations and conclusions expressed are those of the research team alone, and do not necessarily represent the views of the FINRA Investor Education Foundation or any of its affiliated companies. No portion of this work may be reproduced, cited, or circulated without the express written permission of the author(s).
FINRA Investor Education Foundation
The FINRA Investor Education Foundation, established in 2003 by FINRA, supports innovative research and educational projects that give underserved Americans the knowledge, skills and tools necessary for financial success throughout life. For details about grant programs and other FINRA Foundation initiatives, visit www.finrafoundation.org.
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