20 Big Ways the Recession is Changing Young Adults

by Staff Writers

October 27, 2011

It’s tempting to assume that young adults, much less settled into their lives than older adults, would be less hard hit by the recession. Yet new research has demonstrated that young adults are taking a particularly damaging hit in this economic downturn, and that the effects of their experiences during these formative years could cause long-term changes in their beliefs, values, and career choices.


Whether they’re delaying quintessential rites of passage, altering their attitudes towards consumption and spending, or forgoing college to start a career, it’s clear that many young adults are feeling some serious pressure from the recession. Here, we’ve collected some of the biggest and sometimes most surprising ways the poor economic situation is changing how young adults think and act, with repercussions that could resonate for decades to come.

1. Young people are spending less, saving more

   While the millennial generation is often labeled as being materialistic, many young people hurt by the recession are learning how to live well with less. Whether or not this restraint will last after the worst of the economic crisis passes is yet to be seen, but researchers think there could be similar societal shifts to those during the Great Depression, especially since many young people are still in the formative years of their lives. Further influencing young adults to embrace the virtues of simple living is the strength of the green movement, which has made it much cooler to use, waste, and spend less.
   

2. Moving back in with parents is much more common

   The phenomenon known as boomeranging has grown substantially over the past decade, largely due to the poor economic climate. Since 2000, a growing number of people in the 25-to-39 age group have been moving back home, and by 2008, the percentage of those living at home grew by double digits. Nationwide, numbers have increased by 32% since 2000, with one of the biggest increases being seen in college grads. Of those who moved back home, 10% say they moved back with their parents because of the recession, two in 10 are full-time students, a quarter are unemployed, and about a third had lived on their own before returning home. If the job market stays as it is, experts believe there could be a major shift in the typical American household, and a return to the multi-generational home.Continued