by Juliana Kaplan, Avelet Sheffey and Noah Sheildlower at Business Insider
- One in three Americans ages 18 to 24 have no income, according to a new report.
- Younger Americans are also increasingly depressed and not enrolling in college.
- An analysis from the St. Louis Federal Reserve looks at the fate of younger workers.
Gen Zers might be reshaping the world of work — but only if they have a job. And, for many, that might not be the case.
New research from the St. Louis Federal Reserve’s Institute for Economic Equity delved into the challenges young people aged 18 to 24 are experiencing in today’s economy. They found that more than one in three have no income at all.
In particular, the researchers looked at a group dubbed “disconnected youth,” who aren’t working and are also not in school. As of 2022, disconnected youth comprised 13% of this age group; that share has been rising overall since 1998, according to calculations from the Federal Reserve Bank of Dallas.
To be sure, many young people don’t yet have an income because they are still in school and living off loans or family assistance. But for those who are not, the lack of income could hurt Gen Z’s ability to save money for retirement or make bigger purchases down the road. It also can take a toll on their mental health, weighing them down as they try to progress in a tough economy.