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According to TransUnion, an agency which reports on consumer credit, the millennial generation is the most adversely affected group by the economic effects of the coronavirus pandemic.
Andries Zietsman, a representative of TransUnion, states that their weekly financial hardship surveys shows that the number of South African households impacted financially by Covid-19 increased from 79% to 85%.
Globally, the household income for millennials was affected by 76%, which means 76% of the people surveyed stated that they had lost income due to the pandemic. In South Africa, the number is higher with 85% of millennials stating that they have been financially impacted by Covid-19.
When asked why the millennial generation is the most negatively affected by the current economic recession, Zietsman stated that on a global scale, millennials make up the largest part of the workforce.
With a lot of industries having closed down due to lockdown, many have lost their jobs or experienced a sudden decrease in income. In addition to this, many millennials also have responsibilities such as children as well as debt from home and vehicle finance loans which are common in this age group.
Zietsman further adds that research conducted in the first week of April has shown that only 2 out 5 of consumers have reached out to credit providers for assistance. Various credit extensions have been given by credit institutions, and getting the necessary support is key if it is feasible for one to do so.
