For the most part, kids of the 1980s and 1990s did it right: They avoided drugs and alcohol as adolescents. They went to college in record numbers. They sought stable, meaningful jobs and stable, meaningful careers. A lot of good that did. Studies have shown that young workers entering the labor force in a recession—as millions of Millennials did—absorb large initial earnings losses that take years and years to fade. Every 1-percentage-point bump in the unemployment rate costs new graduates 7 percent of their earnings at the start of their careers, and 2 percent of their earnings nearly two decades later. The effects are particularly acute for workers with less educational attainment; those who are least advantaged to begin with are consigned to permanently lower wages.
Millennials now are facing the second once-in-a-lifetime downturn of their short careers. The first one put them on a worse lifetime-earnings trajectory and blocked them out of the asset market. The second is sapping their paychecks just as they enter their peak-earnings years, with 20 million kids relying on them, too. There’s no good news in a recession, and no good news in a pandemic. For Millennials, it feels like there is never any good news at all.
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