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Youth Depression
Last Post 25 May 2010 09:28 PM by Jonman-X. 6 Replies.
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sbalbom User is Offline
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18 Jan 2010 11:40 AM  

http://www.reuters.com/article/idUSTRE5BL3NI20091222

"Youth Depression" hard on retailers

DALLAS/SAN FRANCISCO (Reuters) - Jon Koehling has a job delivering pizzas in a Dallas suburb and that sets this 21-year-old apart from many of his American peer

"I'm grateful I have a job I don't hate. I did about 15 to 20 applications and it took me three months to get this job," he said as he sat in the restaurant between deliveries.

Koehling is fortunate. People under 30 have been pounded by this recession and its job losses and the implications for some retailers are proving to be dire this holiday season.

Andrew Sum, a labor economist at Northeastern University in Boston, reckons about 50 percent of the 7.7 million jobs lost over the past two years have been absorbed by those under 30.

Within that group, about 62 percent of these job losses have been incurred by young men.

Those aged 16 to 19 have seen a 23 percent decline in jobs -- by far the sharpest decline of any age category. In October to November 2007, almost 5.9 million people in this group were employed either full or part time, according to Sum. By October of this year only 4.5 million were.

This may explain why mall-based retailers catering to male and female teens such as Pacific Sunwear of California Inc (PSUN.O), American Eagle Outfitters Inc (AEO.N) and Abercrombie & Fitch Co (ANF.N) are resorting to steep promotions.

Pacific Sunwear shares have shed 50 percent since a 2009 high in October. American Eagle shares are down 15 percent in the same period, Zumiez Inc (ZUMZ.O) has fallen 28 percent since a September high and Abercrombie is down 16 percent from a 2009 high in November.

The labor situation has been especially hard for the working class and Sum estimates the recession has taken 17 percent of America's blue-collar jobs over the past two years.

"It is the most uneven recession ever. It's all young and working class for the most part ... In the labor and youth markets, I would call it a Great Depression," Sum told Reuters.

GOT IT, SPEND IT

The young tend to spend what they earn so their job woes are bad news for retailers. And in this downturn, they can't rely on making up the difference through from parents' wallets, which already are stretched thin.

Retail analysts note that teenagers for decades have been a key consumer market relied on by many sectors -- from consumer products to electronics to the approximately $26 billion teen apparel market, which is down 7.6 percent this year through October, according to NPD Group.

Eric Beder, an analyst with Brean Murray Carret, estimates teen income has been down 30 percent over the past two years, with apparel, video games and fast food restaurants really taking it on the chin.

"That entire retailing segment has been hurt and fast food ... Think of where 16- to 19-year-olds hang out. It's in the mall and in fast food restaurants," he said.

In apparel, the lower teen income has most visibly hurt Abercrombie & Fitch, known for its clothing at higher price points than competitors. The chain has posted some of the worst sales results in the teen apparel segment over the past year as teens have gravitated to lower-priced chains such as Aeropostale Inc (ARO.N).

On the other side of this demographic equation, Sum -- using U.S. Department of Labor data -- calculates that, in the over 55 age group, there are over a million more people working now than there were just over two years ago.

This is partly because this group includes the numerous "baby boomer" generation -- who drove much consumption when they were teens -- but also because many older workers have reentered the labor force because their retirement nest eggs or properties have lost value.

One consequence of this has been increased competition for low wage jobs in the retail, fast food and entertainment sectors typically associated with young adults and students.

Jim Morgan, 19, and Brad Hearst, 18, who were smoking in the snow-filled parking lot of a fast-food restaurant in Loves Park, a suburb of Rockford, Illinois, can relate.

Morgan graduated from high school in 2008 and has yet to find a permanent job. He lives with his parents.

"Everywhere I apply for a job, I get told I don't have experience, but how am I going to get any experience when no one will give me a job?" he said.

"Even some of the stores and fast-food places I've tried, they're hiring older workers who've lost their jobs elsewhere but have experience. I've been squeezed out of the job market and I'm about ready to give up."

Hearst graduated this summer and has yet to get a job, although he says he has applied everywhere in the area.

Sum said these scenarios stemmed in part from minimum wage increases.

"Employers say, 'If I have to pay somebody $7.50 or $8.00 an hour I'm going to hire an older worker," he added.

But for some retailers that it is still not good news -- older workers are more likely to save or to spend their earnings in other ways.

(Reporting by Ed Stoddard and Alexandria Sage; additional reporting by Nick Carey in Loves Park, Illinois; editing by Michele Gershberg and Andre Grenon)





 

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22 Jan 2010 06:00 PM  
Yeah, it's tough. Gone are the days of just graduating from high school and getting a high-paying job.

That is partly because those jobs relied upon making things. The US has a tremendous amount of capital, so instead of using a shovel like a worker in India and making pennies, an uneducated worker in the US could use a million-dollar diesel shovel, and accomplish things worth paying him/her $30-$40 an hour for. Now with a knowledge-economy,

well, it's amazing, I've been working in a company for 3 years and it seems like no one does really much of anything, other than kowtow to clients, who make up their own bs and give us the run around just so they will have jobs, too. If they didn't spend all their time chasing their tails, there would be no work to do and no one would have a job. The people inside the system make money because the system already is set up to automatically make money (most of what is "done" doesn't really require a person to do it), and the people outside the system don't - they service the people inside.

Speaking of a knowledge-based economy, the knowledge level of our population of high school grads is pitiful, and getting worse. I partly attribute it to high exposure to electronic media, which is altering neuronal development in children so they can't focus on anything, and also to low-paying jobs where parents aren't in the house because they have to work 2 jobs to make ends meet, so the kids aren't getting any education at home. That is where most skills like having a work ethic are learned, along with a love of reading -- so nobody at home means no education. School can only refine or add finishing touches to what the home creates as a base.

I teach college in Brooklyn, and the students strongly resist me asking them to learn. One told me I shouldn't have high standards for them because it's like "The 13th grade". I sat down and thought about it - what I have witnessed suggests they are at about the level I was somewhere between 4th and 5th grade. And these are high-school graduates - who don't know enough to buy the text book for a class, or read it. We are going to have a tsunami of dumbness in America. And they all expect to live well like they see on TV. I wonder if eventually they will get upset that they aren't getting what they want and turn to class revolt. I doubt it -- they'll probably just feel ground down. How can we make money off a huge poor class? I suppose predatory lending and Rent-a-centers. And services for the "haves" like gated communities and security guards. Overall, though, it's not a good thing for our country.
To thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man.
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05 May 2010 01:56 AM  

Thanks for sharing!!!

http://www.synergytreatment.com/

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05 May 2010 12:22 PM  
I agree totally and completely, JerseyCityENFP.
The country's IQ is going down. This is unfortunate, as America essentially runs on innovation. (Assuming that IQ and innovation is linked, which it seems to be).
More and more people are looking for "the easy life"-- personal peace and affluence. (By personal peace I mean the "who cares what the neighbor's doing so long as I'm happy")

The problem is, it's hard to convince people that this is actually a bad thing. Pragmatism doesn't move a lot of people because of the personal peace thing.
When America was largely Christian in the 1700's, religious devotion kept people moving forward because it was "all for the glory of God."
During WWII, we had the same thing, but with patriotism, because it was "all for the war effort."

Now, though, there's no pressing need and no majority religion to keep people from just doing whatever feels right at the moment.
It's more fun to watch sitcoms than it is to learn physics, so why bother?
There's not either a need or a desire to better oneself anymore... entertainment has replaced excellence.

Then again, I may have a skewed sample, living in an extremely materialistic part of the country, but it doesn't sound any better in Brooklyn...
"Humans of earth, I come in peace. You need not fear me, I mean you no harm. However, it is important to note that most of you will not survive the next 24 hours. You should, in no way, take this personally. It's strictly business. So, to recap, I come in peace, I mean you no harm, and you will all die." -Gallaxhar, Monsters vs. Aliens
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10 May 2010 06:29 AM  

Yeah Its very true sbalbom!!

 

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10 May 2010 12:03 PM  
I have nothing to offer this conversation but a BIG FAT "I AGREE!!!!!" Although, I wouldn't say entertainment has replaced excellence, so much as too much excellence has excelled in entertainment. Remember, things like "Food Inc" -- mainstream documentary films can still create paradigm shifts in our society. If our society responds well to entertainment, perhaps the best way to beat them is to join them. There needs to be a new way to excite people about physics, the sciences, and innovation by using entertainment. I think the human being will always have a propensity to create and discover -- and this "type" has always been in the minority (aren't INTJ's a rare breed too? Hmmm...). Human population levels are just so outrageously high that the proportion of consumers vs. producers is unprecendented, and it makes a normal situation that has always been, enlarged and scary to analyze. We did have vehicles like religion and patriotism in the past to drive our communal goals to an agreed destination, and now that vehicle may very well be entertainment. It may not be as romantic, maybe even seedy at worst, but there certainly is no denying our global culture is enamored by it. Hmm.. maybe I did have a few cents to offer :-P
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25 May 2010 09:28 PM  
Hmmm... Yes...
It troubles me deeply
I'm from Canada, though. From what I've seen, at least from where I'm sitting, it's not too different here.

It's kind of a burnout culture, it seems.
It's hard to find people in high school with drive, motivation, aspirations...
But I would imagine that there's going to be some kind of crash...

It really does go back to the home, I agree.
A characteristic of my generation, I would say, is a lack of health. Everything... Physically, psychologically, interpersonally, we just seem to have abandoned it.
Also characteristic is nihilism and a lack of hope. This isn't everywhere, and I'm so encouraged by the exceptions I see, shining in spite of the apparent direction of the popular youth culture. It makes me sad... Because all of these people can be so great! I'm sure they would get going if they could see it...
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