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Even More Bad News For Younger Workers: More Unemployment, Less Money

The article titled "Even More Bad News For Younger Workers: More Unemployment, Less Money" by Erik Sherman, published on Forbes on June 28, 2025, delves into the troubling economic conditions faced by younger workers in the United States. The piece highlights the increasing unemployment rates among young adults and the corresponding decrease in their earnings, painting a grim picture of the job market for this demographic.

Sherman begins by citing recent data from the U.S. Bureau of Labor Statistics, which indicates a significant rise in unemployment among workers aged 16 to 24. The unemployment rate for this age group has surged to 12.5%, a stark contrast to the national average of 5.8%. This increase is not only a cause for concern but also a signal of deeper systemic issues within the economy that disproportionately affect younger workers.

The article goes on to explore the reasons behind this troubling trend. One major factor is the ongoing economic recovery from the global health crisis that began in 2020. While older workers have seen some recovery in their employment rates, younger workers have not experienced the same level of rebound. Sherman attributes this to several factors, including the nature of the jobs that younger workers typically hold. Many of these positions are in industries such as hospitality, retail, and leisure, which were hit hardest by the economic downturn and have been slow to recover.

Another contributing factor is the shift towards automation and technology in the workplace. As companies seek to cut costs and increase efficiency, they are increasingly turning to automation, which often displaces entry-level positions that younger workers typically fill. This trend is expected to continue, further exacerbating the unemployment problem among young adults.

Sherman also discusses the impact of the gig economy on younger workers. While the gig economy has provided some opportunities for flexible work, it has also led to a decrease in stable, full-time employment. Many young workers find themselves piecing together multiple part-time or freelance jobs to make ends meet, which often results in lower overall earnings and a lack of benefits such as health insurance and retirement plans.

The article further examines the financial implications of higher unemployment and lower earnings for younger workers. According to Sherman, the median income for workers aged 16 to 24 has dropped by 8% over the past year, a significant decline that is putting many young adults in a precarious financial position. This decrease in earnings is particularly troubling given the rising costs of living, including housing, education, and healthcare.

Sherman also touches on the long-term effects of these economic conditions on younger workers. Prolonged periods of unemployment and underemployment can have lasting impacts on a person's career trajectory and earning potential. Young adults who struggle to find stable employment early in their careers may face challenges in building a solid financial foundation, which can affect their ability to save for retirement, purchase a home, or start a family.

The article also highlights the psychological toll that these economic conditions can take on younger workers. The stress of unemployment and financial instability can lead to increased rates of anxiety and depression among young adults. Sherman cites a recent study that found a significant correlation between unemployment and mental health issues among workers aged 18 to 34, underscoring the need for better support systems and resources for this demographic.

In addition to discussing the challenges faced by younger workers, Sherman also explores potential solutions to the problem. He suggests that policymakers need to focus on creating more job opportunities for young adults, particularly in industries that are less susceptible to automation. This could include investments in sectors such as healthcare, education, and green energy, which are expected to see growth in the coming years.

Sherman also advocates for increased support for education and training programs that can help young workers develop the skills needed to succeed in a rapidly changing job market. This could include apprenticeships, vocational training, and partnerships between educational institutions and businesses to ensure that young adults are prepared for the jobs of the future.

Furthermore, the article calls for a reevaluation of the gig economy and its impact on younger workers. Sherman argues that while the gig economy can provide flexibility, it should not come at the expense of stable employment and benefits. He suggests that policymakers consider implementing regulations that protect gig workers and ensure they have access to essential benefits.

In conclusion, Sherman's article paints a sobering picture of the economic challenges faced by younger workers in the United States. The combination of higher unemployment rates, lower earnings, and the shifting nature of the job market is creating significant hurdles for young adults trying to establish themselves in the workforce. While there are no easy solutions to these problems, the article emphasizes the need for concerted efforts from policymakers, businesses, and educational institutions to address the issue and create a more equitable and prosperous future for younger workers.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/eriksherman/2025/06/28/even-more-bad-news-for-younger-workers-more-unemployment-less-money/ ]