At 29, Cynthia Schatoff has been laid off twice. After three years as a graphic artist at a local firm, she was let go in April. It wasn't easy finding a job as the economy worsened, but she did. In September, she lost that job.
After six months at an Internet startup, Loretta Goodridge, 27, lost her $65,000-a-year contract in January as seed money dried up.
A few years ago, employers wooed young workers with bonuses, perks and trips to ski resorts. Now, more people in their 20s are losing jobs and getting by on unemployment benefits and help from family.
With jobs scarce and the unemployment rate climbing, young workers are competing with older ones willing to take pay cuts. And some employers are keeping experienced workers who have more training and skills while avoiding large severance payments.
Dismal economic news continued yesterday. The Dow Jones industrial average lost nearly 300 points, to close at 6,763.29. It marked the first time since 1997 that the index had closed below 7,000. And more layoffs were announced, including 6,100 at HSBC Holdings, which is shutting down its U.S. consumer lending branch operations, with several offices in Maryland.
"I got my MBA to have something permanent and stable," said Goodridge, who graduated in May from the University of Maryland's Robert H. Smith School of Business. "I've spent more time looking for a job than I've been in one."
For workers 20 to 24 years old, the jobless rate skyrocketed to 13.5 percent in January, compared with 9.8 percent a year earlier, according to the Bureau of Labor Statistics. The unemployment rate for those ages 25 to 29 rose to 10.1 percent last month, from 6.4 percent a year ago. Nationally, the unemployment rate was 7.6 percent last month.
The rising unemployment among younger workers bucks a widely held belief that higher-paid and older workers are the first to go when employers look to cut labor costs.
Historically, younger workers are more likely than older ones to be unemployed during tough economic times. They are often seen as a bellwether for the economy because their labor trends are cyclical, said Heidi Shierholz, an economist at the Economic Policy Institute in Washington.
During previous recessions, including in 1990 and 2001, the unemployment rate among 20- to 29-year-olds rose faster than among older groups, according to the Labor Department. The last time joblessness was so high for that age group was in 1983 and 1984.
