One in five young adults neither work nor study in the US – Money Times

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In the first three months of the year, an estimated 3.8 million Americans between the ages of 20 and 24 were out of work (Image: Pixabay/@5688709)

about one in five young adults America Not working or studying in the first trimester, while young blacks and Hispanics remained inactive at disproportionate rates.

The Center for Economics said that in the first three months of the year, an estimated 3.8 million Americans between the ages of 20 and 24 were neither employed nor receiving education or training, which is known as NEET tax (in employment, education or training). not known). Policy and Research (CEPR) report good.

This represents an increase of 740,000, or 24%, over the previous year, before many people lost their jobs or postponed college enrollment because campuses were closed at the start of the pandemic. COVID-19.

Inactive youth are a worrying sign for the future of the economy, as they do not acquire the necessary professional skills to help them meet their earning potential in the future. In addition, higher NEET rates may promote environments that are fertile. social instability.

According to the CEPR study, the increase in the last quarter appears to be driven largely by unemployment, while there has been a slight increase in school attendance as campuses begin to reopen. young adults still facing double digit unemployment rate.

Simran Kalkat, author of the report, said, “Current and ongoing efforts for recovery need to be done more to ensure that today’s diverse working-class youth can improve their long-term prospects in the workforce and for years to come. May I be successful.”

Although the NEET rate has declined since the highest level seen in April 2020, progress in reducing racial disparities has not been as smooth. Nearly a quarter of young black adults were inactive last quarter, up from 20.9% in the same period in 2020. The rate for Hispanics in this age group was just under 20% and for white Americans was about 16%.

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For the first time in history, the unemployment rate for teens in May was lower than the rate for workers aged 20-24. However, the unemployment rate in their 20s has improved from 10.7% to 10.1% in the past six months.

An employment report coming out Friday will provide information on whether states ending unemployment benefits during the pandemic encouraged young adults to return to work. It will also show whether there are more opportunities in low-paying jobs as the economy reopens, jobs for which teens can compete.

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Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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