Note that this article has been updated to also include some of the private discussions with thought leaders in the past. You can read my final overview of my research into the Millennial generation along with what I predicted and what happened as they matured at this link. While I still speak about Echo Boomers and iGenZ privately, I seldom add new articles to this specific blogspot site. If you're reaching out about a speaking engagement, you can contact me at the research firm SqlinSix.
Do Echo Boomers Feel the Recovery?
Since the recession began, young Echo Boomers have been financially impacted more than any other American demographic. While the implications may not be immediately obvious, when you evaluate the Millennial financial data, you'll notice that this generation lacks resources in general. Without a job, many Echo Boomers will stay in college, work various jobs or start businesses to make ends meet, or leave the United States.
This past recession will define Echo Boomers. While we see reports of the recession ending, I view this as false because the official definition can have ended, but the results Echo Boomers see show the opposite for them. Stated another way: one could say, "We're not in a recession" and this is true. But Echo Boomers have seen a significant reduction in their standard of living with many being unable to find work.
Education Isn't Delivering
Although Echo Boomers have a tendency to be educated, in many cases, they still have experienced trouble finding jobs. I've spoken with multiple Echo Boomers, who have college degrees, but are working in retail jobs with the pay slightly above minimum wage. As one Echo Boomer stated, "I'm not making enough money to pay off my student loans yet, and I'm not sure that graduate school is an option when I think of taking on more debt." As a pertinent side note: the education bubble will pop when students realize that their return on investment in education won't pay their student loans.
Consider this point because I've had repetitive conversations with Echo Boomers like this: these young people studied for a profession, yet they are not employed in that profession. Not only is this a loss of human capital, it reflects a non-investment in the next generation.
But the bigger problem here? Echo Boomers paid huge sums of money for education. Yet many of these Echo Boomers don't feel their employment reflects their investment. That may foreshadow a bigger problem later.
Overall
Approximately 35-45% of Echo Boomers I speak to on a daily basis are either unemployed, working part time, or working at a job that pays minimum wage or slightly above minimum wage. These factors mean a lot for their future economic standing: without a decent income, their current loans balances will take longer to pay off; there will be a significant time frame before they can buy homes; they will experience a lot of trouble when applying for any credit. In addition, without work they will face a loss of human capital if they remain in the United States.
Young men in particular have been especially hit hard, as employers can reduce hiring young men without consequences. I've noted with thought leaders this is similar to the educational systems the Millennial generation saw growing up: even though women were over represented in higher education, very few financial opportunities existed for young men to assist or encourage young men to pursue education. I've highlighted that this helped some young men see little economic future in the United States for them as a group. Approximately 12-18% of young men I've spoken with have either moved or planned to leave the United States permanently. Given how cheap some real estate overseas is, this has allowed some of these young men to become home-owners earlier, plus helped them get their foot in the door for citizenship.
(For non-American businesses, this group of young men has exceptional ambition and will do well over time. Considering that many of these male Echo Boomers are either educated or extremely hard-working, I would recommend building relationships with these young men as they enter your country.)
Over time, I actually expect many of these young men to terminate their United States citizenship. While you may read about financial reasons for terminating US citizenship elsewhere, I'll note here that the negative sentiment toward young men in the United States has alienated many of them. Their reasoning for terminating their citizenship has less to do with financial reasons and more to do with culture. When you compound this with some of the exclusion they feel when applying for jobs in the United States (especially during this past recession), this becomes amplified.
In other words, the American young men leaving the United States and abandoning their citizenship is less about this recession and more about the overall culture. I recognize that this is seldom brought up because people assume a financial reason only. Remember, that this is only a small fraction of young men (12-18%), though this is a much more ambitious group of young men.
Final Thoughts
I don't expect Echo Boomers to start their financial lives well off. I also predict that we will eventually see a backlash against higher education, though this could happen in a variety of ways. However, most Echo Boomers are still optimistic. As economic factors continue to affect Echo Boomers, we will see if their optimism is well-placed.
