To combat the strain of unemployment, young adults are making life-changing decisions and increasing their debts simultaneously, according to a national study released Wednesday.
"I would say young people are the proverbial canary in a coal mine," said Anna Greenberg, senior vice president of Greenberg Quinlan Rosner, the research company that conducted the study for Qvisory.
Since its launch about six months ago, Qvisory, a non-profit online advisory organization, has formed an online community aimed at helping young adults with their money, work and health concerns.
On Wednesday, the organization launched services to reduce financial stress on young adults, including credit counseling, an online records storage service and first-home ownership advice.
Greenberg said when the recession hit more than two years ago, financial experts should have recognized the struggles of young adults foreshadowed the future downturn of America's economy.
She said young adults are particularly vulnerable to the shifting economy because they rely on part-time work and have the highest unemployment rate. The study found about 20 percent of young adults are currently unemployed versus only 7 percent of adults of ages 30 and older.
Along with relying heavily on credit, young adults face increasing debts from student loans, first-home mortgages and car loans.
"They're basically getting by with plastics," Greenberg said.
Although 71 percent said they cut back on expenses, 41 percent of young adults admitted they sometimes only pay the minimum amount on credit card bills, while nearly one-third said they have paid a bill late. Sixty-eight percent reported having the same or more debt than last year.
"They're digging a hole that's going to be very hard to get out of," she said.
In addition to racking up debt, 20 percent of those surveyed said they or a family member have left college or transferred to a less expensive school.
Young adults are two-and-a-half times more likely to lose their job than older employees.
The impact on this age group has not gone unnoticed at UF, where about 11,200 students flocked to the university's two-day career showcases in fall 2007 and spring 2008 combined.
For the 2007-2008 academic year, the Career Resource Center reported a 24 percent increase to visits in career counseling, a 16 percent increase in employer visits and a 24 percent increase in individual employment interviews.
Despite being unsure of current hiring capabilities, companies still return to the career fairs, said Ja'Net Glover, assistant director of career events.
Glover said UF's strong alumni network has also brought employment opportunities to students. Still, she encouraged students to be flexible with job opportunities and open-minded to alternatives like working for the government or non-profit agencies.
