The U.S. economy is recovering at an impressive pace: experts expect economic output to grow by more than six percent by 2021 – the order of magnitude known from China. However, GDP though United States If the epidemic is significantly closer to the level before it started or has already reached it again, there is one area where the default still does not return: in the labor market.
The number of employees is still six to seven million less than in 2019. Young Americans between the ages of 20 and 24 are particularly hard hit by this development. According to a survey by the Center for Economic Policy and Research, 3.8 million young Americans currently have no training or education and no regular employment. That’s up from 740,000 a year ago – a 24 percent increase, according to the news agency Bloomberg.
Junior unemployment is high
This ratio is particularly high among blacks and citizens with Hispanic roots: almost all young blacks (24.6 percent) have no job, up from 20.9 percent a year ago. For whites, the rate has risen from 12.8 percent to 15.9 percent.
If this phenomenon takes root, it could trigger negative social developments, the study warns the authors. Inactive young people can become a problem for the economy because they no longer have vital skills. The risk of social unrest is also increasing.
This increase is mainly due to the increase in youth unemployment. The unemployment rate in the United States rose to more than 14 percent during the epidemic, but it soon fell to six percent again. However, the unemployment rate among young Americans is still in the double-digit percentage range.