"down and out" is an expression to mean someone is experiencing a situation that could keep them from living or prospering or planning for the future. It is a feeling more than an economic status. Even a rich person can feel "down and out.''
In your sample article, it is the lack of job opportunities that impacts the youth. So they feel like they have no chance to improve themselves. They feel trapped because they can't see a good future.
Losing a job and your wife leaving could cause you to feel down and out.
Not making the team could make you feel down and out.