Labor Survey: Third of Young Workers Move Home to Save Money

With Labor Day coming up this Monday, a survey of workers under 35 by the AFL-CIO released Tuesday shows young workers have very little to celebrate.

Ten years ago -- the last time workers younger than 35 were surveyed -- they were more likely to be insured, more likely to have paid leave, more likely to have a retirement plan, and more than half were managing to set aside some savings from their income.

Today, one-third of young workers have no health insurance, and less than a third reported being able to pay their bills with money left to set aside. The rest were living paycheck to paycheck or said they were unable to keep up with their bills, according to the poll, which was conducted for the AFL-CIO using a national sample of 1,156 respondents aged 18-34 in July 2009, with a margin of error of 3.5 percent.

So, where are young people turning in the economic crisis? The recession has curtailed the cash subsidies many parents at one time gave their kids, but parents have opened the door to the family home. According to the poll, more than one-third of young workers are living with their parents.

"We could afford to live on our own," acknowledged Nate Scherer, 31, who, along with his wife, moved back in with his parents in Ohio. "But then we could never get out of debt," said Scherer, who works for an insurance company. While moving back home saves money, it's also changing how young workers approach adulthood. In addition to moving back in with their parents, more young workers reported delaying plans for continuing education or starting a family.

Of course, one avenue for alleviating at least some of the pain of younger workers could be opening up. AFL-CIO officials said they backed President Obama's health care reform efforts, but said their support would evaporate if the bill does not include a public option, calling it "essential" and "an absolute must." But even with health care reform on the table again, young workers still are starting out at lower salaries, with fewer benefits, and often racking up larger debts from not having had health insurance. The disadvantage is likely to haunt young workers, even as they age.