The St. Louis Federal Reserve’s Institute for Economic Equity conducted research focusing on the economic challenges faced by young adults aged 18 to 24, revealing that over a third of them have no income. This study particularly examined the “disconnected youth,” a group not engaged in either work or education, which has grown to 13% of this demographic since 1998. While some young people lack income due to being in school or receiving family support, the absence of financial stability poses obstacles to saving for the future and can impact mental health. Despite a strong labor market, real incomes for young adults have remained stagnant, exacerbating issues such as the racial wealth gap. The rise of disconnected youth underscores the need for interventions like improving access to education and addressing structural barriers to economic opportunity.
