Odds Stacked Against "Recession Kids"
What a difference a recession makes. Kids entering the job market during a recession - dubbed as "recession kids - earn an average of $100,000 less during their lifetimes than do youngsters who begin looking for their first job during better economic times.
That's a bum deal for any college graduate looking for a first job today. And it's far from the only significant hurdle that "recession kids" face when entering the job market.
The National Bureau of Economic Research reported that the attitudes, saving habits and earning power of youngsters entering the workforce during a recession are forever different than those of young job hunters who are looking for work during more favorable economic conditions.
For instance, for every percentage point in higher unemployment rates, new graduates entering the workforce earn a salary that is 6 percent less than what youngsters who enter the job market in better times fetch. That's especially bad news today, when the national unemployment rate hovers near 10 percent. It's also a trend that will impact these young job seekers for decades. When you start out in a 6-percent hole, it's hard to catch up with those workers who took their first positions when companies were flush with cash.
"Recession kids" also have vastly different attitudes about both work and life. These youngsters support wealth redistribution and government intervention to help protect people who are struggling to land jobs or pay their bills. They also tend to invest their money more conservatively. They save more and spend far less. They also seek out the safest of jobs, hoping to avoid those dreaded layoffs.
Today's young job seekers definitely qualify as "recession kids," even though the recession has officially ended. After all, the unemployment rate for job seekers from the ages of 20 to 24 is more than 15 percent. That's even higher than the national unemployment rate of nearly 10 percent.
Of course, the recession, the worst the country has seen in seven decades, hasn't limited its impact to just young job hunters.
For instance, during the financial crisis the nation's personal savings rate has more than quadrupled from 2008 to now, when the rate has risen to 4.5 percent. People have also increased the amount of time they spend with their families by 2.25 hours a day.
These are actually positive changes: We should all be spending more time with our families, after all. And socking money away is a good habit.
Good thing, too, because the job market has shown little evidence of easier times in the near future, especially for the "recession kids." Employers report that they will hire 20 percent fewer graduates in 2010 than they did last year.
Recession Recovery: Best and Worst American Cities
When it comes to The Great Recession, there are plenty of cities that are recovering nicely from the economic slump and those that have completely missed the boat. The cities that have that have not been able to gain a foothold on the economic recovery ladder are all over the country and they are still struggling from the recession. These cities still have a declining gross product, declining employment, and home prices that are rapidly falling.
Who's Failing? Is It Your City?
The top 20 cities that rank the worst for economic recovery may not be the cities that you think. Some of them are cities that have made a lot of news for their poor economic recovery. We all know that Detroit isnt doing well right now, but it's only number three out of the 20 worst cities.
Which city is the number 1 worst city? Look at the graphic to find out and to see the rest of the list. You may find out that your city isnt doing quite as well as you thought!
Who's Winning the Recovery Race?
If you live in a city that continues to flounder economically, you can still find some hope by looking at the list of the 20 best cities in America for economic recovery.
These cities have been gaining ground in the gross product game and many are actually adding more jobs to the job market on a monthly basis. The homes in these cities are increasing in value as well and that has made these cities beacons of hope for the rest of the world.
Need a Job?
There are parts of the country that are bleeding jobs like a leaky fuel line. On the other hand, there are cities that are bouncing back from high unemployment like it never happened. However, if you live in California, Ohio, or Florida, your economic circumstances may be limited by the poor financial situation of your city. If the jobs are scarce, your job may be in jeopardy if you havent lost it already.
To find jobs, you might look into areas of the country that are recovering quickly from the recession; instead of the coasts, look toward the center of the country for new jobs. Texas, Oklahoma, Missouri, and other Midwestern states have numerous high-ranking cities on this coveted list. Their economies are picking up and the number of jobs is bouncing back. However, if you want your best chances of finding a job, put on your cowboy boots and head to Texas.
The top four spaces of the 20 best cities in America for economic recovery are all in Texas, and Texas cities occupy even more spaces on the top 20 list. Youll see if your city made the list and all of the great cities that are full of economic rebound power. You may just find one you want to investigate further including Honolulu number 11 on the list!