America is running out of young people “willing to flip burgers.”
The number of people in the workforce between 16 and 24 years old without a college degree has been steadily on the decline, according to a note from Bank of America Merrill Lynch.
“This cohort has been declining since the start of this recovery, probably reflecting the continued push towards higher education, as well as demographics which has reduced the number of younger workers willing to flip burgers for a few years while they save for college,” the note said.
The number of young people enrolling in college over the past few years has increased and the percentage of people with a college degree is also increasing. This keeps younger people out of the workforce for longer, reducing the supply of young, less educated labour.
The economists cite the lack of cheap, lower educated labour as one of the reason wages for people making the least are increasing quickly, since companies are competing for a smaller pool of workers.