Economic Recession Hurting Teen Workers in the Present and in the Future

"Out of the Spotlight" Posting for May 20, 2010

As policymakers and the American public continue searching for solutions to persistently high unemployment, one demographic that shouldn’t be ignored is low-income youth workers. In a tight economy, these younger adults are competing with and losing jobs to workers with more experience, who have lost their own positions and have been forced to take lower-skilled jobs to make ends meet.

According to a May 16 article in the Atlanta Journal-Constitution, only one in four teenagers between the ages of 16 and 19 are currently employed. According to the Bureau of Labor Statistics, the unemployment rate of this age group is now at 23.5 percent, the highest level since records started being kept in 1948.  By comparison the national unemployment rate is 9.9 percent.

Low-skilled jobs are often the only option available for low-income young people to support themselves and their families, and to gain work skills and experience.  Given that low-income people in general are already more likely to be unemployed, the employment difficulties facing young adults could have particularly serious consequences.

The article notes that since the recession hit in 2007, more than one million teens have left the work force and are neither looking for work nor collecting unemployment. In addition to the high unemployment rate now for this age group, losing out in the current job market has the implications for their future employment.  Job loss now means lack of skills and poor future employment prospects. As researcher Andy Sum has noted, “lack of broad-based work exposure is harming both… immediate and longer term job prospects and earnings. Employers are increasingly critical of their (young people’s) lack of employability skills and their poor work behavior, but they can only gain such skills through work itself.”

Both houses of Congress are already looking at legislation that would give up to $1 billion in funding to states to create an estimated 300,000 summer jobs for teens.

As the debate on policy solutions for unemployment goes forward, leaders need to consider these young workers, who are struggling to succeed in job markets of the present and future.

Posted by Mike

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