Millennials now number 83.1 million and represent more than one quarter of the nation’s population. Their size exceeds that of the 75.4 million baby boomers, according to the latest statistics from the U.S. Census Bureau. The Millennial generation is facing challenges unlike generations before. Many millennials are struggling just to keep their head above water and the problems they face are real!The Millennial generation is facing challenges unlike generations before. Click To Tweet
Millennial Problem #1:
The millennials are the brainiest, best-educated generation ever according to a special report compiled by the Economist
“Millennials also stand out because they are the most diverse and educated generation to date… About 61 percent of adult Millennials have attended college, whereas only 46 percent of the Baby Boomers did so.” is clearly stated on http://www.whitehouse.gov
This doesn’t seem like a problem at first, in contrary it sounds really great! However, the issue lies in the fact that the college diploma now feels worth as much as your high school degree. The supply of educated workers is much higher than the demand for them in the workforce, proved by as many as 39 percent of people under 25 being either unemployed or underemployed.
Millennial Problem #2:
The U.S. census data shows that 40 percent of our nation’s unemployed are millennials
“I was surprised by how high (unemployment) is for millennials…Unemployment is becoming a youth problem” – Andrew Hanson, research analyst at Georgetown University
Millennial Problem #3:
Americans between 18 and 34 are earning less today than the same age group did in the past
In fact, average earnings are the lowest that they have been since 1980. The typical millennial earned $33,883 between 2009 and 2013, while in 2000 young people were earning an average of $37,355.
Millennial Problem #4:
Millennials are reporting the highest levels of stress and depression than any other generation at the same age
Millennials are getting hit hard by depression. One in five young workers has experienced on-the-job depression, compared to only 16 percent of Gen X’ers and Baby Boomers. New survey by USA Today shows stress levels for most Americans are falling – but not among the Millennial generation, ages 18-33.
Millennial Problem #5:
Americans owed more than $1.3 trillion in student loans at the end of June, more than two and a half times what they owed a decade earlier. Based on a Pew Research Center analysis of recently released data from the Federal Reserve Board’s 2016 Survey of Household Economics and Decisionmaking about four-in-ten of Millennials aged 18 to 29 currently have student loan debt.
Millennial Problem #6
It’s becoming more common for millennials to live at home
As of 2016, 15% of 25- to 35-year-old Millennials were living in their parents’ home. This is 5 percentage points higher than the share of Generation Xers who lived in their parents’ home in 2000 when they were the same age (10%), and nearly double the share of the Silent Generation who lived at home in 1964 (8%).
Millennial Problem #7:
Millennials experience greater difficulty in securing a job that utilizes their degree than those of a similar age a decade ago
Based on a detailed McKinsey study among college-educated youth, only 55 percent landed in a job relevant to their field of study, with 25 percent finding interim work – jobs that are unrelated to their field of study and that youth plan to leave quickly.
Millennial Problem #8:
Millennials are less likely to be homeowners than young adults in previous generations
According to the Millennials report by the Council of Economic Advisers, The Executive Office of the President of The United States the pace of household formation is low and the “headship rate” among Millennials – the rate at which Millennials head their own households – has fallen. There are fewer Millennials as independent renters or homeowners. Consistent with lower headship rates, young adults today are less likely to be homeowners than young adults of previous generations.
Millennial Problem #9:
Millennials are financially fragile
The results found in a Washington Post survey are astonishing:
- 63% of Millennials would have difficulty covering an unexpected $500 expense.
- Only 6 percent of Millennials feel they are making a lot more than required to cover basic needs. For Millennial women, the figure is only 3 percent.
- 44 percent would dedicate $5,000 in lottery winnings to paying off bills and loans, signaling a struggle to launch, save, and invest.
In accordance to the survey conducted by PwC, nearly 30% of millennial respondents reported that they were regularly overdrawing their checking accounts.
Millennial Problem #10:
Fewer and fewer millennials are becoming Entrepreneurs
The US Small Business Administration report indicates that Entrepreneurship is lower among Millennials than among prior generations. In 2014, less than 2 percent of Millennials reported self employment, compared with 7.6 percent for Generation X and 8.3 percent for Baby Boomers. Similarly The Kaufman Foundation implies that millennials age 20-34 represented about 23% of new entrepreneurs in 2013, which is down from 35% back in 1996.
Are you ready to tackle these Millennial problems?
As a manager of Millennials, you may struggle to address the challenges that Millennials face. You can check out more Millennial articles on our blog to learn how to best support your Millennial employees.