FOR IMMEDIATE RELEASE:
January 6, 2014

Contact: Colin Seeberger, colin.seeberger@younginvincibles.org, 214.223.2913

New Report Quantifies the High Cost of Young Adult Unemployment

Report Details How Much Inaction on Youth Unemployment Is Costing Each Taxpayer

[WASHINGTON]—Today, a new report released by Young Invincibles, In this Together: The Hidden Cost of Young Adult Unemployment, examines the real and hidden costs of young adult unemployment to America’s taxpayers and its devastating impact on the economy. According to the report, crisis-level young adult unemployment not only reduces the economic security of a generation, but also drains desperately needed resources from state and federal governments to the tune of $8.9 billion annually.

The report, for the first time, puts a price tag on the cost of youth unemployment to each individual taxpayer. The report’s authors found that high youth unemployment effectively adds an additional $53 to each taxpayer’s federal tax bill. The costs are even higher when including lost state income tax revenue. These costs result primarily from lost tax revenue.

“This report reminds us that we are all in this together, and there is much to gain by investing in this generation,” said Rory O’Sullivan, Young Invincibles’ Policy and Research Director, and one of the report’s authors. “When young adult unemployment rates are nearly twice the national average, there’s little doubt that it hurts individuals’ prospects. Now we have the economic evidence showing that everyone suffers through reduced economic output and lower tax revenues. Federal and state governments must make education and training of our generation a priority, or everyone will continue to lose out.”

When factoring in the shrinking of the labor market during Great Recession, the costs are far greater. According to the report, the cost of youth unemployment and lower workforce participation rates among young adults since the recession began in November 2007 is greater than $25 billion annually (or $171 per taxpayer). Attaching price tags to the crisis brings the return on investment of some basic policy solutions, listed in the report, into clearer focus.

“Ignoring youth unemployment now risks further economic damage down the road. Because the early years of a young person’s career matter a lot for improving skills, wages, and job prospects, making sure that young people are employed is critical to our shared economic success now and in the future,” said O’Sullivan.

For the raw data, per taxpayer costs broken down by state, and policy recommendations, please find a PDF copy of the report here. An HTML version of the report, featuring interactive graphics, can be found here.

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Young Invincibles is a national organization committed to amplifying the voices of young adults, ages 18 to 34, and expanding economic opportunity for our generation. Young Invincibles ensures that young adults are represented in today’s most pressing societal debates through cutting-edge policy research and analysis, and innovative campaigns designed to educate, inform and mobilize our generation to change the status quo. Follow us on Twitter at @YI_Care.