Millennials Control Just 4.6 Percent of US Wealth
The millennial generation, people born between 1981 and 1996, make up the largest share of the U.S. workforce, but control just 4.6 percent of the country's total wealth.
The updated data released by the Federal Reserve reflects how the pandemic continues to increase the generation gap in the United States. According to the central bank, those born between 1981 and 1996, better known as Millennials, control only 4.6% of the wealth in the country even though they make up the majority of the workforce, with around 72 million people.
While it is not unusual for younger people to accumulate less wealth than their elders, this particular group lags far behind previous generations when they were the same age, as shown by Fed data. It is also observed that during the first half of 2020, Generation X (1965-1980) comprised 25.2% of the population while the Baby Boomers (1946-1964) defended their leadership by controlling 53.2% of US wealth.
In this way, Millennials accumulated an approximate net worth of 5.19 billion dollars until the end of the second quarter of 2020, while Generation X almost multiplied that level by six to 28.52 billion dollars. Baby Boomers control about $ 59.56 billion and those born before 1946 about $ 18.78 billion.
In terms of assets, the dynamics are also interesting. Millennials have a predilection for real estate assets, where they spend 37% of their fortune, around 3.38 trillion dollars. His interest in equities, for example, is much more limited, directing only $ 580,000 million to these purposes, about 6.3% of his total wealth.
By contrast, Baby Boomers invest about $ 14.82 trillion in stocks and mutual funds and Generation X another $ 6.28 trillion. Although both generations have greater assets in the real estate sector, of 13.4 trillion and 9.35 trillion dollars respectively, the percentage of their wealth allocated to it is lower than that of Millennials (20.9% for Baby Boomers and 27.1% for GenX).
The latest figures published by the Fed continue to reflect a significant disparity on this side of the Atlantic during the first half of 2020, both at the generational level and taking into account other factors, such as race, educational level, or age, among others.
In fact, while the 1% of the luckiest Americans have a combined net worth of $ 34.2 trillion, the poorest 50%, about 165 million people, own only $ 2.08 trillion, or the 1.9% of the total wealth accumulated by Americans.
Unemployment claims in the US are on the rise again, reaching 885,000 for the week and exceeding forecasts
New claims for unemployment benefits rose for the second week in a row to 885,000 for the week, thus beating market forecasts of about 800,000 claims.
The average number of applications in four weeks, a measure that compensates for weekly variations, also increased to 812,500 processes compared to 778,250 the previous week.
BLS indicated that in the week ending December 5, there were 5.5 million people receiving this conventional benefit, compared to 5.78 million in the previous week.
The increase in orders last week was the second in a row, and the second time it surpassed the 850,000 marks since the last week of September, an indication of the weakness of the labor market when the country is in what should be the time of hiring for shops on the occasion of traditional festivals.
The weekly number of requests for unemployment benefits had an average of 205,000 procedures for several months until at the end of February the impact of the pandemic on the labor market began to be felt.
In the last week of March, the Government received 6.8 million requests for the benefit, while the economy slowed down with the closures of companies, shops, bars, and restaurants, and activity in educational institutions almost completely ceased.
In March, Congress approved and President Donald Trump endorsed an economic stimulus package that included a temporary unemployment benefits program for independent workers and contractors who are not covered by the conventional benefit.
That program, which distributed $ 600 a week and benefited more than 16 million workers, expired at the end of July, and Congress and the president still do not agree on an extension of aid to these unemployed, although they could reach a new pact this week.
The general unemployment rate, which had risen to 14% in April, has been declining almost month by month, reaching 6.7 in November