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Many Gen Zers will find themselves without a stimulus check this week, due to a loophole in the bill: those who were filed as dependents on others' tax returns aren't eligible to get the $1,200 check. Pew Research Center defines Gen Z as being between the ages of seven and 22, and those of college age, roughly between 18 and 22, find themselves at risk of falling through the loophole, depending on their tax status.
Business Insider has reported that nearly one-third of Gen Zers have already lost their jobs amid the coronavirus pandemic. College students often work on campus or take part-time jobs and internships to help fund their educational careers. As colleges have gone virtual, gig economy work dries up, and internships are canceled, young people are finding themselves without cash flow.
As previously reported by Business Insider, young people often work in industries such as retail and hospitality, which have already seen massive disruptions. Thousands of stores, restaurants, and coffee shops have shuttered nationwide as state governments have mandated the closure of "non-essential" businesses amid the pandemic.
The Center for Law and Social Policy points out that young people account for 25% of low-paying jobs, while more than 38% work in the gig economy. Half of all workers who were paid minimum wage last year were young adults, and they only comprise one-fifth of hourly workers. Furthermore, the rate of poverty among young adults is at 15%, which is higher than the average rate of 12.3%.
Already, Gen Z is expected to graduate into a recession that's predicted to be worse than the 2008 financial crisis. An April 2019 Stanford study revealed that those who graduate into a recession experience a stagnation in economic prosperity than can last decades.
As of March 27, a third of Gen Z workers had reported being put on leave by their employees, making the generation one of the most affected by layoffs. And that number has surely risen by now as nearly 17 million Americans filed for unemployment over the last three weeks.