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The Young and Restless Part II

March 29, 2024 | Posted in: Insights

My recent blog (The Young and the Restless) focused on the difficulty that younger Americans are having purchasing a home due to high prices, 7% mortgage rates, and the challenge of accumulating the $84,000 down payment required to buy the average home. Unfortunately, young people face another major hurdle which is the difficulty in finding employment commensurate with their educational attainment. According to a study by the Burning Glass Institute and the Strada Education Foundation that was recently reported in Business Insider, 52% of recent college graduates are working in jobs that do not require a college education including food service, construction, retail, and office administration. While these grads earn about 25% more than those with only a high-school diploma, they earn about one-third less than a grad working in a college level job. And the longer-term implications of initial underemployment are very serious. A graduate who starts his or her career underemployed is 3.5 times more likely to remain underemployed ten years later. Even those who start in a college level job are not guaranteed future success in that 21% of them fall into underemployment within ten years. There aren’t too many good things about being of a certain age, but I am happy to be a gainfully employed homeowner.