As the economic crisis deepens, more jobs are vaporized, millions lose their unemployment benefits, and prices for essentials goods continue to rise, many Americans are left with no choice but to move back in with mom and dad.
It’s being called the Boomerang effect, and since the onset of recession in 2007 the trend has been growing at an alarming rate:
The number of 26-year-olds living with parents has jumped almost 46 percent since 2007, according to Census Bureau data compiled by the University of Minnesota Population Center. Last year, the number of 18- to 30-year-olds living with their parents grew to 20.7 million, a 3.9 percent gain from 2010.
The figures underscore the difficulty that millions of young people have had in finding jobs and starting careers in the U.S. following the longest recession since the Great Depression. About a quarter of American adults between the ages of 18 and 30 now live with parents, while intergenerational households have reached the highest level in more than 50 years.
“There’s been a shift in attitude,” said Kate Brooks, the career services director at the University of Texas College of Liberal Arts. “Parents are more accepting; some welcome it.”
The number of unemployed Americans has surged 60 percent to about 12.5 million from 7.82 million in the first quarter of 2008, according to data compiled by Bloomberg. The nation’s jobless rate, which peaked at 10 percent in October 2009, was 8.1 percent in August, compared with 5.1 percent in March 2008.
Whether their parents welcome it or not most have no choice – it’s either that or leave their kids to starve on the streets.
The largest group of those moving back home are college graduates entering the worst jobs markets since the Great Depression. As we noted in 2010, some 85% of those students are, after four years of higher education, left with nothing more than a worthless piece of paper and no hope.
All the while many economists, politicians and central bankers have argued that the nation has been on the road to recovery, as they cite bogus unemployment statistics and manipulated economic growth data.
Over 100 million Americans now depend on some sort of government assistance or disbursement just to stay alive, and not surprisingly roughly the same number of Americans are now living in poverty or right on the edge.
The Greatest Depression is here. Only those with their head in the sand can ignore it now.