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This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.
This story originally appeared on Alto Nivel
By Antonio Sandoval
For the first time in nine decades young adults have returned to homes at a rate that has not been seen since the Great Depression in the 1930s According to an analysis by the Pew Research Center using data from the United States Census Bureau.
The obvious cause was the loss of jobs or the drop in income that the pandemic brought with it. According to the source in late July The total number of young adults living with one or both of their parents rose to 26.6 million , This was an increase of 2.6 million compared to February , on the verge of the devastating effects of the pandemic on the world's largest economy.
This measurement only includes young people between the ages of 18 and 29. According to the figures, the phenomenon was heavily concentrated in the segment of young people between the ages of 18 and 24, the age most economically vulnerable in adulthood. Expressed in percent it is means that 52 percent of young people in the analyzed age group The 18 to 29 year olds live with their parents, the highest rate since the global economic crisis.
In fact, the Pew Research Center states that this 52 percent rate is already higher than the 48 percent reported during the end of the Great Depression and the United States' entry into World War II in 1940, with no exact figures. In the worst part of the 1930s economic crash, the latest reading is actually the largest ever observed in the country's history.
In a survey carried out by the Pew Research Center, affected young people pointed to the pandemic as a direct cause of returning to their parents' homes, either due to the closure of their university campus, due to the loss of their jobs due to requests for sanitation in other cities where they lived, or anywhere.
The figures show that younger adults are more likely than other age groups to have lost their jobs or received wage cuts. The proportion of 16- to 24-year-olds who are neither school nor employed Due to the pandemic and the resulting economic recession, the number more than doubled in February from 11 to 28 percent in June.
So it could have an impact on the world
Statistics on young adult home return appear to be an internal matter for the United States. However, it is a phenomenon that could affect the whole world It's not something strictly internal .
First of all, the new housing market, which was already affected before the pandemic, could experience additional dark hours as it will take these population several additional years to request housing, or it will never.
The household growth indicator is one of the most important statistics in the US economy and, in general, there is great uncertainty ahead of the pandemic. Lower household growth is a sign of lower demand for housing, less construction work and lower demand for household materials in a construction industry that is vital in many parts of the country . Likewise, this lower demand for housing and its construction could mean a decline in the demand for household items, from household appliances to cleaning products. Many of them are exported from other countries in the world, including Mexico.
The world's most consumerist society, that of the United States, could face a collapse in consumption due to an unexpected pattern prior to the great epidemic. the return of part of the young population to their parents' homes . This population is the one with the greatest potential for future consumption, but at the moment it would be constrained and it is not known how long this will take as this could already become a tradition that Millennials started with the 2008-2009 crisis Crisis subprime, maybe lacking to change consumer habits.
Millennials rich in labor, poor in money
The millennial generation has already experienced two major crises in its short existence. one of them the largest since the Great Depression. This is already reflected in their economic conditions as they are the largest workforce generation in the United States and around the world have only 5 percent of the wealth of the world's largest economy . An estimated 72 million people are employed in the Millennial in the United States.
It is not uncommon for the younger and larger generation to be the least prosperous in the early decades of their economic dynamism, but this 5 percent share is lower than that historically recorded in other generations over the same period. According to the Fed Baby boomers made 53 percent of American wealth, while Generation X cut their participation rate to 25 percent of the total .