New York State Comptroller Thomas P. DiNapoli has released a report highlighting the economic difficulties faced by young adults in New York, particularly those belonging to Generation Z and younger Millennials. The report points to higher unemployment rates, rising living costs, and increasing debt as key factors affecting their financial stability.
“Young adults are dealing with mounting obstacles to achieving financial stability and independence,” DiNapoli said. “They face a shrinking pool of entry-level jobs and rising unemployment, driven in part by AI. Increasing housing costs along with growing debt are also making it increasingly difficult for them to live independently and build their future. Addressing affordability, expanding housing options, and improving access to education, job training and employment opportunities are essential to reversing these trends. Retaining the state’s young workforce is a critical component of New York’s prospects for its long-term economic growth and prosperity.”
According to data from the Census Bureau’s American Community Survey, there were 4.6 million New Yorkers aged 18 to 34 in 2023, representing just over 23% of the state’s population. However, this group has declined by nearly 2% over the past decade while nationally the young adult population grew by more than 4%. Most young adults reside in downstate regions such as New York City, Long Island, and the Hudson Valley.
The report notes that educational attainment among young adults remains relatively high; more than half of recent high school graduates pursue higher education in New York—higher than the national average—and people aged 26 to 34 are more likely to hold bachelor’s degrees compared with older groups.
Labor force participation varies by age group: among those aged 18-25, less than half participate in the labor force while about half attend school; most who work do so part-time in service roles like sales or food service. For ages 26-34, participation rises sharply; nearly nine out of ten college-educated individuals not currently enrolled in school are employed.
Despite this engagement with work and education, unemployment rates for young adults remain elevated at more than double the statewide average—8.6% in 2023—with significant disparities based on race and education level. Black or African American youth experienced unemployment rates above 18%, twice that of their white peers; Hispanic or Latino youth also faced higher joblessness while Asian Americans had lower rates overall.
Housing costs have increased substantially since 2013—median rents across New York rose by one-third during that period—while affordable rental units have become scarcer. Over one-third of young adult renters now spend at least a third of their income on rent and utilities; home ownership among those aged 26-34 has dropped from over 31% two decades ago to about 23% today.
Debt levels have also surged: since 2013 total debt held by young adults nationwide has grown nearly 68%, outpacing increases seen among older age groups. In New York alone, about $40 billion in student loan debt is owed by residents aged 18-34—over two-fifths of all student loan debt statewide—with average balances exceeding $30,000 per borrower.
Student loan delinquencies have spiked since federal reporting pauses ended late last year; national delinquency rates jumped from less than half a percent at the end of last year to almost ten percent midway through this year.
The full report titled “Economic Challenges Facing New York’s Young Adults” is available on the comptroller’s website along with related analyses including updates on youth labor force trends in New York City.
