Katie LaPotin, Red Alert Politics, August 2, 2013
Despite a small drop in the number of unemployed young Americans aged 18-29, unemployment among Millennials remains at the highest levels its been since World War II according to the latest Millennial jobs report issued by the non-profit organization Generation Opportunity.
The report, which was issued Friday, found that 11.6 percent of Millennials were unemployed in the month of July,a drop of 1.1 percent from June. Unfortunately, the effective unemployment rate among young adults remained at 16.1 percent last month – meaning that an additional 1.8 million young Americans completely left the workforce because of a lack of jobs.
These findings only go to show that things are not improving as quickly as they need to for young Americans. And they further confirm the findings from two reports issued earlier this week that depict the poor situation for Millennials. First, a new Gallup study found that young adults, regardless of their education level, are holding fewer full-time jobs in 2013 than in 2012. Then, on Tuesday the Department of Labor reported that the unemployment rates in 90 percent of American cities rose in June as college grads began their job hunt.
So what is preventing the economy from rebounding and allowing Millennials to find full-time jobs? Evan Feinberg, the president of Generation Opportunity, believes that the upcoming implementation of Obamacare is what’s scaring many employers away from hiring workers full-time.
“This jobs report shows that Obamacare and other ‘solutions’ coming from Washington are scaring off employers from hiring, and as a result my generation is getting stuck in a cycle of part-time, temporary jobs – not the meaningful careers for which they studied. It’s tragic to see a generation as talented and innovative as mine go to waste,” he said in a press release.
Feinberg even believes that the lowering of the national unemployment rate – which dropped to 7.4 percent in July – is strictly due to the increase in available part-time jobs and not economic recovery.
“Any gains at all has been in part-time jobs, with Obamacare getting closer to full implementation and the specter of it looming over employers, we see that young Americans are just finding absolutely no economic opportunities within this economy,” Feinberg told Red Alert Politics.
He added that since January there are more than 833,000 more Americans working part-time, while 97,000 fewer Americans have full-time jobs. Feinberg attributes this to the fact that employers are afraid to hire new full-time employees now because there is still lots of uncertainty about how much more they are going to have to pay for employees’ benefits under the new healthcare law.
“It’s also the uncertainty of how much it’s going to cost to employ a full-time person, which is why employers are backing off their hiring,” Feinberg said. “When businesses are polled about Obamacare, they see massive amounts of uncertainty that are paralyzing them when it comes to hiring new workers…and they’re right, they’re right to be worried that if they hire new employees it’s going to cost them a lot of money.”
“It’s not just the employer mandate to offer health insurance, it’s the fact that offering health insurance period is going to cost a lot more money,” he continued.