A Lost Decade: The Economic State of Young America

In advance of the Better Deal 2009 conference, the AFL-CIO has released a new (and to my knowledge unique) study of the economic state of young Americans, and their opinions on the current economic environment: Young Workers: A Lost Decade. As the name implies, the study is tracking changes in the economic state of young Americans over 10 years (the last time they did a similar study). Methodology info can be found at the bottom of the post for all the polling geeks.

Over the course of the last 6 months, this is probably one of the things I've been most asked about - data on young Americans' opinion of the economy and all that the term broadly implies (health care, new/green jobs, student debt, etc). In short, this is one of the most important studies to come out about young voters this year. Bookmark it. This is something that legislators, journalists, activists, and bloggers are going to turn to time and again between now and the midterms, and it is something I will revisit multiple times over the next few weeks.

The study contains over 40 pages of data, each with its own, important nugget of information on youth and the economy. For now, here are the topline findings as reported by the AFL-CIO:

The Lost Decade:

• Young workers are having more trouble than ever getting ahead financially. times are even tougher for young workers of color, workers without college degrees and many women.
• Compared with older workers, workers younger than 35 are significantly less likely to be covered by health insurance or have retirement plans at their jobs, and are more likely to be unemployed. today, 31 percent of young workers report being uninsured, up from 24 percent 10 years ago. only 47 percent have retirement plans at work, down 6 percentage points from 1999.
• Only 31 percent say they make enough money to cover their bills and put some money aside—22 percentage points fewer than in 1999—while 24 percent make less than they need just to pay their monthly bills.
• With higher unemployment rates in 2009 than young workers faced in 1999, it’s hard to find a job. But it’s even harder to find a good job. More than one in three young workers worry they will not be able to find a permanent, full-time job with benefits.
• It’s also become increasingly unlikely that young workers will receive paid leave. only 58 percent receive paid sick days, and only 41 percent are offered paid family leave. one of young workers’ top-rated priorities is spending time with family. But many are worried this simply won’t be possible because time away from work often means not getting paid.
• This decline in income and benefits no doubt accounts for a significant drop in young workers’ optimism over the past decade. compared with more than 75 percent of
  young workers in 1999, today just over half say they are more hopeful than worried about their economic future—a 22-point drop.

Dreams of Adulthood Deferred

• These financial constraints are forcing young workers to postpone many of the steps young people traditionally have taken to begin their adult lives. one of the most stunning findings of this survey reveals that more than one in three young workers are currently living at home with their parents.
• Nearly two in five young workers have had to delay further education or professional development due to financial worries. the statistic is even more extreme for young
  workers of color—close to half say they’ve put educational goals on hold. And low-income workers are 30 percentage points more likely than young workers with higher incomes to worry about being able to afford the cost of education.
• Having the requisite education or training doesn’t guarantee young workers a job for which they are trained. one in five say they are over-qualified for their current jobs and 22 percent are working outside their chosen field.
• Young workers are putting off starting a family until they are more financially secure, and close to one in three say they worry very often or somewhat often that they will have to delay starting a family because of economic concerns.

An Overlooked Majority: The Plight of Low-income Young Workers

• While all young workers have lost ground over the past decade, the outlook for low-income workers is especially bleak. And this problem does not affect just the few: More than half of young workers earn less than $30,000. A third of these workers cannot pay the bills, and seven in 10 do not have enough saved to cover two months of living expenses. They are also just as likely to live with parents as to live on their own.
• Making things worse, low-wage jobs are significantly less likely to offer the benefits characteristic of “good jobs.” Forty-four percent of low-income young workers do not have health insurance, and only 27 percent have pension or retirement plans from their jobs. Because low-income young workers are also less likely to be able to save for retirement on their own, many do not have any retirement savings at all. Less than half have paid sick leave, compared with more than 75 percent of workers with incomes over $30,000, and a mere 31 percent receive paid family leave.
• For too many low-income workers, the barriers to financial and personal independence seem insurmountable. Yet they remain the most confident in the leadership and agenda of President Barack Obama.

Visions for a Reinvigorated Economy

• Young workers have a clear vision for reinvigorating the economy, and it’s largely summed up by one four-letter word—Jobs.
• Along with jobs, health care and education top the economic agenda for young workers. Facing rising health care and education costs themselves, young people know that access to education and affordable health care are vital to building a better future for their generation, the next generation and America’s economy overall.
• In their own workplaces, young workers are embracing greater diversity and increased use of technology. their career goals reflect a strong desire to provide for their families and to make a positive difference in the world. But few trust their own employer to do what’s best for employees.
• Even fewer have confidence in corporate America as a whole. When asked who is most responsible for the country’s economic woes, close to 60 percent of young workers place the blame on Wall street and banks or corporate ceos. And young workers say greed by corporations and ceos is the factor most to blame for the current financial downturn. They are also considerably more likely to hold former President george W. Bush responsible for the downturn than the new administration. Only 6 percent blame President obama.
• Young workers’ priorities for the nation discredit certain brands of conventional wisdom about what’s best for young people. By a 22-point margin, young workers favor expanding public investment over reducing the budget deficit. they also take a more progressive view on contentious social issues such as immigration.
• Young workers rank conservative economic approaches such as reducing taxes, government spending and regulation on business among the five lowest of 16 long-term priorities for congress and the president.

Methodology:
The study was conducted through 1,156 telephone calls, with an oversampling of 18 - 34 year olds pulled from Catalist, as well as 50 cell phones. It's not the best methodology in the world to achieve a reliable youth sample, but it beats the methodologies used by most pollsters and news organizations, who typically drastically undersample youth.