district ’ s metropolitan area as part of ongoing efforts to improve high school graduation rates and facilitate workforce development in line with local labor market demand. 31 cleveland ’ s analysis emphasizes the importance of investing in primary and secondary education, as well as technical education beyond high school, to ensure high school graduates possess the strong analytical and soft skills and the guidance they need to access technical and service jobs that can provide an on - ramp to the middle class. the federal reserve banks of richmond and san francisco are developing an online course, life after high school, to help students navigate their first major financial decision – choosing the path to pursue after high school. the course encourages students to explore a number of educational paths and job options and provides them with information on how investing in education can contribute to their future well - being. the federal reserve bank of boston, for its part, has focused attention on strengthening the financial capability of community college students. it has recently published promoting pathways to financial stability, a handbook designed for community college personnel and others interested in helping students learn to manage their financial lives. 32 as the economic recovery continues to strengthen, it is important that we monitor the progress of young workers and their experience in the job market, their educational outcomes, their management of student debt, and their progress toward forming independent households and owning homes. understanding the interaction of various economic pressures on young workers is the first step. the ultimate goal is to develop evidence - based policies and opportunities to support the generation that has come of age in the shadow of the great recession as they gain a foothold on the ladder to a better economic future. see paul taylor, kim parker, rakesh kochhar, richard fry, cary funk, eileen patten, and seth motel ( 2012 ), young, underemployed and optimistic : coming of age, slowly, in a tough economy ( washington : pew research center, february 9 ). see lisa nelson and francisca richter ( 2014 ), “ the prospects of non - college - bound workers in the fourth district, ” a look behind the numbers ( cleveland : federal reserve bank of cleveland, february10 ). see federal reserve bank of boston ( 2015 ), promoting pathways to financial stability : a resource handbook on building financial capabilities of community college students ( boston : federal reserve bank of boston ). bis central bankers ’ speeches

speeches household formation and homeownership sharply lower household formation and homeownership rates are among the most striking legacies of the great recession, distinct from earlier recessions. the number of households formed each year dropped by more than half, from about 1. 35 million in the early and middle 2000s to about 600, 000 households per year after 2007. moreover, the fraction of young adults who own homes also fell substantially : after peaking at 22 percent in 2005, the overall rate of homeownership among young people fell to 16 percent in 2014. 21 the combination of high educational debt levels and poor job market prospects faced by young adults entering the workforce in the aftermath of the financial crisis are the most likely causes of these sharp declines. 22 indeed, the share of adults under 30living with parents or other family members rose significantly in the wake of the financial crisis and has remained at a high level. 23 the shed found that, among individuals who live with their extended family or with roommates, over half are doing so to save money, and nearly three - fourths would move out on their own if they could afford to do so. federal reserve research also indicates that debt is an important determinant of whether a young person lives with their parents, even after controlling for labor and housing market conditions. 24 that analysis also indicates that credit delinquency and lower credit scores increase the propensity for adult children to move home as well as the length of time that young people live with their parents. however, it is possible that, even after improving economic prospects help young people overcome these impediments and boost household formation rates, homeownership rates among the great recession generation could lag. young people ’ s attitudes toward homebuying may have changed as a result of witnessing their parents ’ experiences during the housing crisis. instead of seeing homeownership as a reliably safe investment, many of today ’ s young adults may now see some risk that houses could become financial albatrosses due to events beyond their control. if this is the case, the great recession cohort may be slower to buy a home than previous cohorts, even after meeting their pre - recession career and earnings expectations. indeed, research suggests that dramatic economic events, such in the 2010 – 11 academic year. during that same period, total federal loans originated increased from $ 49 billion to $ 76 billion. federal student loan programs also changed significantly during this time. in