Millennials face one of the toughest economic landscapes of any generation since World War II: they are working for relatively low pay and, for college graduates, they’re saddled with an average of some $30,000 in student debt.
But now, they are about to confront yet another challenge — robots. Millennials will be the first generation to absorb the full impact of the new age of automation, which, if history is a teacher, will wipe out jobs faster than the economy can create new ones.
What’s happening: Millennials came of age during the Great Recession. Since then, three-quarters of all new U.S. jobs have paid less than a middle-class income, according to Labor Department data.
- These minimum- or lower-wage jobs are the ones that millennials — ages 23-38, born between 1981 and 1996, and the largest generation in the country — are often taking.
- Unlike prior generations, there may not be much of a ladder up from there. Part of that is economics — tech and globalization have hollowed out middle-skill, middle-wage jobs. And part of it is the continued aftermath of the financial crash.
There has been political fallout: On top of all this, millennials are on the hook for the public spending excesses of the baby boomers. In an Axios/SurveyMonkey poll last year, 51% of millennials said they resent boomers for their financial circumstances, tension likely to play out in the politics of the coming decades.
- The bottom line: Prior technological revolutions have led to decades-long interregnums before real wages returned to prior levels. And those thrown out of work often had trouble finding new jobs. The new automation is tech on steroids. As time goes on, it will strike hard at blue-collar millennials in cities and more rural parts of the country alike.
- Look for even greater disaffection and raw unhappiness from left-behind Americans.