Moderate conservative George Will writes about in Investors Business Daily. This is a good review of what’s happening in the economy.
The reason why unemployment fell by four-tenths of a point (to 6.3%) in April while growth stalled is that 806,000 people left the labor force.
The labor-force participation rate fell by four-tenths of a point to a level reached in 1978, which was during the Carter-era stagflation and early in the surge of women into the workforce.
There are about 14.5 million more Americans than before the recession but nearly 300,000 fewer jobs, and household income remains below the pre-recession peak.
[…]The more than $1.1 trillion of student loan debt — the fastest-growing debt category, larger than credit-card or auto-loan debt — is restraining consumption, as is the retirement of baby boomers. In 2012, more than 70% of college graduates had student loan debts averaging about $30,000.
This commencement season’s diploma recipients enter an economy where more than 40% of recent graduates are either unemployed or in jobs that do not require a college degree. This is understandable, given that 44% of the job growth since the recession ended has been in food services, retail clerking or other low-wage jobs.
In April, the number of persons under 25 in the workforce declined by 484,000. Unsurprisingly, almost one in three (31%) persons 18 to 34 are living with their parents, including 25% who have jobs.
[…]There is, however, something new under the sun. The Pew Research Center reports that Americans 25 to 32 — “millennials” — constitute the first age cohort since World War II with higher unemployment or a greater portion living in poverty than their parents at this age.
Now it’s not just that the young people are having trouble paying off their loans and leaving the nest, it’s that they also are going to inherit a debit that has more than doubled since they elected Obama the first time. This is serious, now. If you are a young person, you’d better have a plan to be borrowing as little as possible, working as much as possible, saving as much as possible, and studying only what can get you a job. Things have changed since the time of your parents. You will have to work harder to achieve less. You voted for it.