‘Millennials’ is the term for the cohort of people now age 18 to 34. There will be 75.3 million American millennials in 2015, compared with 74.9 million baby boomers between ages 51 to 69. In terms of economic impact, it is important to appreciate that the ongoing debt bomb and financial crisis are having a lasting effect on the millennials as they struggle to get an economic foothold. Millennials are under-employed and indebted with little savings. This is bad news for economic growth, the tax base, pensions and social programs. It’s also bad news for boomers looking to fund their retirement by selling financial assets and real estate at high prices to younger buyers.
“The birth rates for women in their 20s saw a 15 percent drop from 2007 to 2012, the Urban Institute report released Tuesday found. The decrease contributed to falling birth rates for women overall, after more than three decades of relative stability…
“This is really quite big,” said Nan Marie Astone, one of the report’s authors.
However, because the big plunge in the birthrates coincided with Great Recession and the following years, “it’s hard to think that [the economic decline] wasn’t the reason,” Astone said.
Still, while every previous major economic decline has also been followed by a decrease in the birthrate among young women, “it’s not been this big” as the one identified by the new study, Astone said”.