Declining Fortunes of the Young: IMFBlog

A key indicator of economic success for families is that children do as well as their parents. Such assumptions are less sure. “Despite being more educated than their parents, millennials – those born between 1980 and 2000 – may have less job stability during their working life,” explains a team for the IMFBlog. Entering and remaining in the middle class, fast-changing job requirements, intense wage competition, automation and artificial intelligence, and secure retirements are concerns. The 2008 global financial crisis exacerbated the emphasis on temporary work and income gaps among generations. An IMF study focused on the United Kingdom: Routine jobs for young workers lacking college degrees are in decline; wages are falling, particularly for women; and college degrees are producing less return. The highest-paid jobs require “abstract-thinking” and problem-solving, which can be “complementary to technology.” The share of abstract jobs has fallen since 2001. Policies must prepare individuals for automation, rapid changes in technology and need for flexibility. – YaleGlobal