Despite a recent economic downturn responsible for job cuts and increased competition in the employment market, young adults preparing to enter the workforce don’t seem worried.
According to a recent study published by the Pew Research Center, a majority of adults surveyed said it was more difficult for young adults today to reach financial milestones such as finding a job, saving for the future, paying for college or buying a home. The study, titled “Young, Underemployed and Optimistic: Coming of Age, Slowly, in a Tough Economy,” said this could be caused by the perception that the age of adulthood is being pushed further back.
The survey said the commonly accepted age of financial independence has shifted. In 1993, 80 percent of parents said their children should be financially independent by the age of 22, but today only 67 percent of older adults agree.
But the majority of young adults still believe that 22 is the appropriate age to establish financial independence.
Accounting freshman Lydia Abadie said her parents currently aid her finances, but she hopes to be financially independent by the age of 21.
Robert Kaj Gittings, assistant economics professor, is a labor economist who studies the supply and demand of the labor market.
Gittings teaches a class on labor economics in which he provides two days’ worth of tips and tricks for job searching. He said his students consistently praise him for these lectures, and he can see students are interested and concerned about entering the job market, but they don’t regard it with urgency.
“Many students have the expectation that their degree is going to come with a job,” Gittings said.
Gittings said there is a pecking order in the labor market. Students who are seen as “superstars” are sought out and will receive job offers before they graduate. He said these graduates will not have to worry about unemployment.
Once someone graduates without a job, they are seen as unemployed, and Gittings said this signals to employers that these students were not “superstars,” making them less valuable potential employees.
“That first job is so important in basically defining your career path,” Gittings said.
The study revealed the employment rate among young adults aged 18 to 24 has fallen to 54.3 percent, the lowest figure the U.S. Bureau of Labor Statistics has collected.
This can be attributed to students not aggressively seeking jobs as well as the lack of available jobs.
“Young adults don’t seem to be participating in the labor market as much as they used to be,” Gittings said.
He said the labor force participation includes those who are currently employed and those actively seeking employment.
The study also revealed workers of all ages desire job security more than a hefty salary.
Abadie is among the consensus valuing job security. She said if someone has a steady job they can manage their money accordingly, but losing a job has major consequences.
Gittings interprets the precedence of high job security as a sign that people are willing to take a pay cut to ensure less risk in their career. He said compensation packages usually include a salary, which is a known amount, and a bonus, which is the risk taken to make more money.
“It seems like younger adults would prefer more of a guaranteed salary than the bonus of risk,” Gittings said.
 
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Contact Haylie Navarre at [email protected]