Millennials To Boost US Economy: 5 Top Picks

Millennials are set to boost America’s economy by adding the power of the youth to workforce. As such, millennials form the largest generational cohort of America’s workforce. As the labor market remains tight and unemployment is at historic lows, an influx of young workers should boost the overall economy.

Further, reports suggest that millennials earn high salaries and spend lavishly on consumer goods, travelling and leisure activities. Moreover, better pay checks also lead to spending on fine dining and entertainment. The space will witness a revolution in the days to come as millennials are likely to spend their disposable income on such products and services.

Under such conditions, investing in stocks from the real estate, consumer discretionary and airline sectors seems prudent. Such sectors are directly impacted by a shift toward leisure spending.

High Salary and Low-Unemployment Driving Millennials’ Growth

Per a USA TODAY report, millennials, especially new job entrants, receive pay hikes, which average 6%. This is double the wage gains of the entire workforce of America.

Further, workers in the age group of 20-24 years, having freshly graduated, benefit the most from the fact that America’s unemployment rate is at a 50-year low currently. Also, millennials are known to be serious job hoppers. One of the primary reasons why they get paid more is that they start from a lower base and climb by switching jobs. As a result, these new entrants and recent graduates’ income is 71.7% of their elders’ average pay.

Are Millennials a Shield to US Recession?

U.S. GDP is staying afloat on high consumer spending. With baby boomers nearing retirement, millennials are pushing the spending charts higher.

Further, a strong job market and low unemployment rate are creating an environment that is supporting consumers spending power. Let’s have a look at the Haver Analytics, Bureau of Labor Statistics and Morgan Stanley Wealth Management GIC’s report on data on consumption levels by age group and source of spending data between 1984 to 2014.

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.