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SUNDAY, NOVEMBER 8, 2009
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Recession-Wary Teens Cut Back on Spending

Teens spend less on food, apparel while video games and DVDs still popular

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(Newser) – The downturn is causing teens, who usually spend through recessions while parents absorb the pinch, to cut back, Advertising Age reports. Teenagers are spending about 14% less this spring than last, a “dramatic impact” from a demographic that spends an average of $125 billion each year. Unemployment is also cramping spending; the teen jobless rate hit 22% in March, the highest in a decade.

Teens are curtailing spending on beauty products, apparel, and recreational activities like concerts, sporting events, and movies. But they’re not willing to cut back on DVDs, music, and video games, which rose from 7% to 8% as a percentage of teen spending. Restaurants are among the most affected by the belt-tightening—teens spent 20% less on food last fall than fall 2007.

Teens haven't stopped spending on video games and gaming systems; the latter rose from 7% to 8% as a percentage of overall teen spending.
Teens haven't stopped spending on video games and gaming systems; the latter rose from 7% to 8% as a percentage of overall teen spending.   (Getty Images)
As a group, teens are very aware of the recession and as such have tightened their spending in several categories.
As a group, teens are very aware of the recession and as such have tightened their spending in several categories.   (Getty Images)
Among food brands, Starbucks remains a favorite among increasingly cost-conscious teens.
Among food brands, Starbucks remains a favorite among increasingly cost-conscious teens.   (Getty Images)
Teens are being more choosy about where they spend, a survey finds, and many face dim employment prospects this summer.
Teens are being more choosy about where they spend, a survey finds, and many face dim employment prospects this summer.   (Creative Commons)
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ANALYSIS

US GDP Jump Hollow if Unemployment Keeps Rising

... and it's still rising faster than before recession

Oct 29, 09 8:07 PM CDT
(Newser) - News that the US gross domestic product jumped 3.5% in the third quarter cheered investors and others, but the cheers will ring hollow if unemployment keeps rising, John Authers writes. Consumer spending rose even as disposable income fell—“ not a pattern that can be sustained for long, and... More »

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 Teen Unemployment 
 Hits Record 25% 

Expert sees teenagers jobless for a 'long, long, long, long time'

Sep 5, 09 6:45 AM CDT
(Newser) - The teen jobless picture is the bleakest since the government started tracking the statistic 60 years ago, the New York Times reports. The rate hit 25.5% last month, nearly triple the rate among other workers. Analysts say teens are getting squeezed out of the workplace by college graduates, unable... More »

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employment • recession • unemployment • youth • teenager

 Lousy Retail Sales Will Delay Recovery

Recession isn't over
as far as consumers
are concerned

Aug 19, 09 8:38 AM CDT
(Newser) - If the recession is indeed waning, nobody told consumers. Retailers of every kind reported lousy sales for the quarter ended Aug. 1, the Wall Street Journal reports. Target’s same-store sales fell 6.2%, Home Depot’s dropped 9.1% and Saks’ plummeted a whopping 15.5%. And with... More »

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Analysis

Economy Is Only
Recovering on Paper


Aug 12, 09 9:03 AM CDT
(Newser) - If you’re the glass-half-full type, recent economic indicators look good: Unemployment fell last month, the savings rate is up, and productivity hit a 6-year high. But that same data proves that ordinary people aren’t likely to feel the good vibrations anytime soon, the Washington Post reports. “... More »

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Older White Men Take Big Hit From Recession

Middle-aged workers hurt as unemployment hits 70-year high

Jul 30, 09 9:40 AM CDT
(Newser) - Typically it’s the young who lose their jobs in a recession, but not in the current slowdown. Aging white workers at the theoretical peak of their earning power are losing their jobs this time around—and they can’t find new ones, USA Today reports. The jobless rate... More »

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race • recession • unemployment • white men • financial crisis • recession depression

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