Why is the Teen Unemployment Rate Skyrocketing

Are teens unemployed because they do not want to work? Is the teen unemployment rate due to teens spending too much time online or playing video games? Can we blame the recession or the mandated minimum wage hike for teen unemployment? Or, has the change in market needs forced teens out of the job market?

For example, in 1990 almost 70% of newspaper carriers in the United States were teens compared to 18% in 2004. This is a result of the newspaper industry transferring newspaper delivery routes to adults that drive and can deliver newspapers in the early morning hours. Teen unemployment rate was 16.5% for the summer of 2006. Nationwide data that was gathered in 2006 for the U.S. Bureau of Labor Statistics showed that only 37% of teens worked that summer.¹

Teen unemployment rate for 16-24 year-old youths in July of 2009 was at a record high of 18.5% the highest rate measured for that age group in that month since 1948. Did the Obama Administration's stimulus program to find jobs for teens this summer fail miserably? Consider this, the $1.2 jobs program left almost one quarter of the 279,169 youths in the program without a job.²

In addition, the mandated minimum wage increased to $7.25 in July 2009, and in September the teen unemployment rate hit a whopping 25.9%. Up from 23.8% in July, and the highest since WWII. It is estimated that 330,000 teen jobs were lost in a two month period.³

There has been speculation or rumors that teen unemployment is due to employers hiring immigrant workers. Interestingly, it seems that the main focus is on the cause of the problem and not a solution.

One suggested solution being tossed around and being debated is creating a special $4 or $5 minimum wage for teens. That may sound good, but is it realistic. Would employers replace older workers with teens, and increase the unemployment rate for adults. Adults that probably have households to maintain, and children to raise. And what about teens that are fortunate enough to have a job, and are currently working at the $7.25 minimum wage rate; would they become angry and quit their jobs if they receive a pay cut.

Another serious problem is the inner city teens that live in environments were crime appears to pay better. They see drug dealers driving fancy cars with flashy spinning rims; they're "blinged" out (slang for wearing gold and platinum jewelry and name brand clothing). These teens are already living with the temptation of making easy money. Ask a teen that is already caught up in a life of crime and drug dealing why they would rather do that than get a job. Do not be surprised if they reply, "Why should I flip burgers for eight hours to make fifty bucks?" Living in poverty creates desperation, and these teens are already at risk. Is a teen minimum wage rate of $4 or $5 really a solution to teen unemployment?

There needs to be a solution that will help all teens. We need to reach them and teach them the importance of work skills, ethics, and the long term consequences of choosing a life of crime. We need to make them understand that all the easy money in the world is not worth gambling with their future and freedom. Teens need to feel hopeful instead of hopeless. Parents need to start parenting, and employers need to hire teens and treat them with the same respect that they give any other employee. Why is the teen unemployment rate skyrocketing? Unfortunately, that is not a question that can be easily answered.

However, as a society we can try and come together to make a difference. Do you have any odd jobs that you can offer the teen you see wandering the streets doing nothing; which usually leads to getting into trouble. Reach out to them. For example, instead of paying the high price of a landscaper why not offer to let a teen cut your grass for reasonable pay, but don't short change them just because they are a teen. How about letting a teen wash and vacuum out the car rather than doing it yourself, or running it through an automatic car wash.

If we stop and think we can come up with many ways to put our teens to work. However, we have to start by ridding our minds of those negative thoughts that fill our head as we drive past those teens hanging out on the corner with nothing to do. You know the labels we give them and the inner fears we posses; we need to let that go and try to help a teen. This may not be "the solution" to teen unemployment, but it may make a difference in one child's life.

Sources:

¹Knowledge @ Emory- Why Teens Aren't Finding Jobs, and Why Employers are Paying the Price - May 09, 2007

²Despite US Stimulus, Teens Left Without Jobs - by Garance Burke, Associated Press, 9/272009

³ Record Teen Unemployment: Only WSJ Seriously Looks At Minimum-Wage Hikes As Cause - by Tom Blumer, Media Research Center - News Busters, 10/05/2009