Millennials Lose The Most Income With The Covid

The bill for the pandemic in young people can already be measured. Millennials – mostly known by the English term millennials -, those who are now between 24 and 39 years old, are the generation that has suffered the most from a reduction in income, the one that has seen the most working hours cut and the one that has seen the greatest This measure has had to reduce its spending since March 2020.

This is clear from the report The generational impact of the coronavirus , a survey that is presented this Monday for which the demoscopic agency 40dB. has surveyed a thousand people between 16 and 75 years to know in depth the economic and emotional ravages that the health crisishas left in their lives.

“The pandemic has accentuated the trend that we have already seen since the debacle of 2008; once again these young people are the big losers in this political climate, ”says Stephan Zao, analyst at 40dB.

With a youth unemployment rate of 40.9% , 66% of the millennials surveyed say that they have seen their salary reduced, a percentage that in the case of the so-called Generation Z —those who are between 16 and 23 years old— drops to 60% and in Generation X – those between 40 and 54 years old – 50%, says the report, which is part of the Genera project, promoted by the Felipe González Foundation and the Foundation for European Progressive Studies to reduce gap between generations.

Millennials are also those who have seen their working hours reduced the most (48.9% of them say so, compared to 36.8% of the general population) and those most affected by job loss (8, 5% versus 5.1% of the general population).

“The recent figures are devastating: unemployment among those under 25 years of age rose by 40.5% year-on-year, much more than among those over that age (20.3%), and with a loss of 116,900 jobs. The feeling is that we will have to do different things if we want to get out of the loop, ”says Javier Blasco, director of the Adecco Group Institute.

“Neither the implementation of the European youth guarantee program of 2014 nor the recent shock plan for youth employment 2019-2021 seem to have made much progress in solving this almost congenital problem of our labor market for more than 40 years” , Add.

The closure has also placed millennials in the first position in cutting expenses, especially in leisure (60% of them said so, a few points above 54.8% of the general population) and in premium products need (30.4% compared to 26.5% of the general population).

The loss of capital has also had an effect on housing: 21.1% of young people between 24 and 39 years of age said they had deactivated the heating to save, compared to 18.5% of the rest of the population.

Laura, who does not want to give her last name, is 31 years old, lives in Madrid and months ago she was aware of her precariousness due to an incident with the oven in her kitchen. “Are there really people my age who have a fixed income? It is hard to believe it.

During confinement my oven broke and I realized that neither a car nor a house are the themes of my generation, things are about ovens, I don’t have money to buy a new one, ”says this journalism graduate. Since 2008 it has not reached the end of the month.

After chaining years of scholarships, he got a mileurista job, which has now been a 100% ERTE. “At the University they sold us the idea that scholarships are a springboard to the job market, but in reality they are a leap into frustration, companies only see us as cheap labor, they do not believe that investing in us is worth it. ”.

Pessimism is one of the feelings shared by different generations, the study points out. 63.9% of the general population claims to feel more discouraged as a result of the pandemic, although in this case it is the young people of Generation Z who are the most affected: 78.3% compared to 65.9% of millennials.

“We need to increase public-private collaboration and better coordination between Administrations so that the market is more efficient. We must accelerate the step to improve training and requalification systems within active employment policies, where Dual Vocational Training – which combines studies and internships -, the profiles demanded by employers and the conditions offered by the market have wide areas for improvement ”, points out Javier Blasco.

Bárbara Ballesteros, 24, is the face of another of the study’s striking results: Millennials are the population group that has had to cut the most in training expenses. 16.5% of them was obliged to reduce investment in education by economic problems, compared with 12.2% of Generation Z or 10.7% of the X .

“My father is retired and my mother receives a disability pension, we go with the right money and I see it risky to continue with my studies when it is not clear to me that the classes are going to be face-to-face,” explains the young woman, who only has the graduate in the ESO. 20% of millennials have dropped out of some type of study since last March, compared to 13.7% of the general population.

“Compared to the 2008 crisis, this time greater social protection measures have been put in place.” 51.6% of the thousand surveyed by 40dB. they “strongly agreed” with this statement. On the other hand, 74.1% did not agree that “the Government is protecting young people from the crisis generated by the coronavirus.”

An issue in which the European Union was less affected: 67.5% of those surveyed between 16 and 75 years of age considered that European policies do not meet the needs of younger groups. However, the social measures implemented by the Government (such as ERTE or the Minimum Vital Income ) received an average score of 8 out of 10.

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