The Fragile Generation

The Federal Reserve Bank and it regional affiliates employ an army of PhD economists and statisticians to conduct surveys and analyze data on the current economic status and future prospects of the nation.

The Federal Reserve Bank of Philadelphia periodically conducts what they refer to as a LIFE Survey report that collects data on four major information categories from consumers involving Labor, Income, Finances and Expectations.

Source: https://www.philadelphiafed.org/-/media/frbp/assets/consumer-finance/reports/life-survey/cfi-life-report-apr-2024.pdf

The most recent LIFE survey from April was recently released and it contains some interesting insights.

One of the areas the Fed is interested in the Labor category are various impediments that might affect an individual remaining in the workforce or, if unemployed, looking for a job.

Look at these responses by age group as to concerns that employees have involving work.

42.1% of those employed in the age 18-35 age group are concerned about being exposed to illness at work?

That compares to only 29.9% of 35-55 year olds, 21.4% of 56-65 year olds and 11.9% of those age 65+.

What has the Covid hysteria done to the minds of young people?

In over 40 years of work I don't remember having one thought about being exposed to illness at work.

If anything, would it not be logical that the older you are the more you would be concerned about exposure to illness at work.

This data is completely upside down compared to standard logic.

The survey also finds that same level of concern in those who are not employed but looking for employment.

46.4% of 18-35 year olds looking for employment state they are concerned about being exposed to illness at work.

That contrasts with 37.9% for those ages 36-55.

The sample size for those looking for work after age 55 must have been too small to show the responses for these age groups.

In looking at the data, young workers have also concerns about every question posed to them at considerably higher levels than older age cohorts on a range of issues---child care, senior care, employer shutting down, employer's ability to stay in business, being laid off or access to reliable transportation. 

Have we created a generation of neurotic young people consumed with anxiety, worry and fear about almost everything?

You can't help but consider the contrast of the responses of the 18-35 year olds in that survey with those individuals of a similar age who stormed the Normandy beaches 80 years ago

I wonder how many of these young men were concerned about exposure to illness at work?

Source: https://www.nationalww2museum.org/visit/museum-campus-guide/louisiana-memorial-pavilion/d-day-invasion-normandy

Looking deeper in the data of the LIFE Survey there is another data element that should give pause to generations of all ages.

The survey asked individuals whether they were unable to pay all or some of their bills.

64.8% of respondents say they are not able to pay all or some of their bills.

Interestingly, the 18-35 year olds are in the best position on this question 

However, among those age 66+ an astounding 74.6% state they cannot pay all their bills right now.

Among those making $150,000+ per year, 63.4% say they cannot pay all of their bills. This is not much different than the 67.4% of those earning less than $40,000 per year.

I guess this proves the old adage that your financial situation is not so much determined by how much you make but how you spend it.

Source: Federal Reserve Bank of Philadelphia Consumer Finance Institute LIFE Survey Data

A fragile generation and a potentially fragile economy?

What could go wrong?