Month by month more and more baby boomers are retiring. This might not be a solution for the large amount of youth coming of age and hopefully in the job market, but it certainly is a trend that places pressure on organizations to hire more (younger) workers. Currently, 11 million recent graduates are living with their parents according to the 2012 Pew Research Center. As of the first three months of 2014, home ownership for those under 35 was at 36%, which is down from a high of 43% in 2005 according to the Census Bureau. Add to the fact that many of these people under 35 are saddled with student debt and you have a combination for a depressed consumer demand amongst the general swath of young workers.
Eventually, the predicament many young workers face will change. The constant exit of more experienced workers into the realm of retirement will open additional opportunities for younger workers and create new needs amongst employers. This is not some far off trend. It is a process that is happening within organizations across the country.
So, what happens when the young generation gains a foothold in the job market? Better jobs will lead to greater buying power. With added buying power we’ll eventually see an outward migration away from parents homes and into homes young workers can call their own.
This progress will lead to a greater amount of large ticket purchases; homes, cars, furniture and the list goes on. Economic expansion one might say.
The generational transition into the labor market might have been delayed because of the Great Recession, but it was not derailed. Millennials are not devoid of the basic material aspirations of past generations. Their traction in the labor market will bring, at least temporarily, a warmer economic climate.