The Pandemic has had a financial impact on everyone, but those most affected are under 25 years old. While the pre-pandemic economy was strong across some sectors, poverty among young adults was growing. An age group already struggling with student loan debt, limited financial aid, high insurance rates, low credit scores, and inadequate health insurance has been crushed by the Pandemic and overlooked by policymakers in economic stimulus efforts. COVID-19 has caused educational disruptions, unprecedented job loss, and a heavy emotional toll.
In March of 2020, many High Schools and Universities moved to online-only learning with little time to plan. While some young people thrive with virtual education, others cannot even access the classes they need or don’t have the support they need to learn independently. The statistics are staggering.
- More than 9 out of 10 students worldwide are still out of school.
- Children sent home in more impoverished communities are the least likely to make up for lost education.
- The education gap is likely to lead to a generational loss of skills and productivity.
- Young people who started behind will have to work much harder to catch up.
- Some young people dropped out of school to help contribute to their families
- Others could not afford to continue their education amidst job losses.
Educational disruptions and the need to live at home for higher education-aged students means that 52% of 18-29-year-olds lived at home as of July 2020. The highest percentage of any previous measurement.
Loss of Jobs
Approximately 1 in six young people have lost a job since March 2020. Much of this job loss is due to being in low-level, easily expendable positions. Another 178 million youth are employed in portions of the economy hit hardest by cutbacks — retail, food & beverage, and customer service. An additional 131 million young people were “informally employed” before the Pandemic and had no job security or opportunity to collect unemployment.
Those who lived on their own the move back home due to school shutdowns or job loss can feel like a failure. And the resulting gaps in transcripts and resumes induce anxiety. Financial strain from student loans, car insurance, credit card debt, etc., piling up due to unemployment or under-employment is hard on anyone, especially on those just beginning to get established. 50%+ of 18-29-year-olds expressed struggles with anxiety & depression due to the Pandemic.
How can we help? Dynamic Works Institute offers a Money Smarts courses aimed at young people to help address the financial challenges they face. If you are interested in this course or know a young person who would benefit from it, get in touch with us today to get started. Being financially literate will help you at any stage in your life, so why not start early and better understand your economy while looking to expand your horizons.