High youth unemployment costs U.S. billions a year, study says
- Share via
Stubbornly high unemployment among millennials costs the U.S. billions in lowered tax revenue and higher safety net costs, according to one study.
Millennials -- defined as those 18 to 34 years old -- have suffered from double-digit jobless rates for almost six years, according to a study by youth advocacy group Young Invincibles. The youngest, aged 16 to 24, suffer from 15% unemployment, the highest rates among youth.
The long-term consequences of high unemployment in an entire generation of young people has been well researched, with echoes throughout their careers in the form of lower earnings and fewer job opportunities.
PHOTOS: Richest and poorest cities in America
But the short-term costs stack up high as well, adding up to almost $8.9 billion a year, the report concluded.
On average, a single 18- to -24-year-old without a job will cost the government over $4,100 a year in uncollected taxes and extra safety net benefits. That amount climbs to $9,900 annually among unemployed 25- to 34-year-olds.
PHOTOS: Best and worst countries in which to grow old
If those costs were billed directly to taxpayers, each one would have to shell out an additional $53 a year.
“The young adult unemployment crisis affects everyone,” the report said. “Taxpayers of all generations bear the burden.”
ALSO:
Colorado stores begin selling recreational marijuana
Corporate expense reports climb 3% in 2013, report says
Ray Irani to get $14-million lump sum after Occidental ouster
Follow Shan Li on Twitter @ShanLi
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
