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Teen Summer Job Market May Be the Worst Since 1951

5 years ago
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Americans aged 16 to 19 face the toughest employment situation since the 1950s, according to job statistics released July 2 by the Department of Labor and analysis by employment experts, AOL's Daily Finance reports.

The government's June employment statistics revealed that non-farm payrolls decreased by 125,000 jobs even as the U.S. employment rate inched downward to 9.5 percent.

The unemployment rate for teenagers, however, is triple that: 29 percent, according to non-seasonally adjusted numbers from the Bureau of Labor Statistics. And in June, teen job growth sank to its lowest level since 1951, according to analysis by employment-services firm Challenger, Gray & Christmas.

Teen employment grew by just 497,000 jobs in June, down 29 percent from the same month last year, when it grew by 698,000. For the year overall, teen employment has grown 38 percent less than it did in just May and June of 2009.

"This could end up being the worst teen summer job market in employment records going back to 1948," says Challenger CEO John A. Challenger. "With data now suggesting that consumers are pulling back on spending, it is unlikely that a late hiring surge will salvage the dismal summer job situation for the nation's youngest workers."

Unemployed teenagers have negative effects on the economy in both the short term and the future. Without jobs, teens have less to spend on clothing, electronics, and eating out, all easy ways to stimulate the economy.

In the long term, failing to get part-time and summer jobs also hurts.

"If teenagers -- especially those from low-income or even working-class families -- can't get summer jobs, that means they will have less work experience in the future," said Michael Brandi, a professor of finance at the University of Texas at Austin. "Labor economists have shown again and again that work experience is an important factor in lifetime earnings."
Filed Under: Economy, Unemployment, Jobs

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There are 17 million people unemployed and 8 million ILLEGALS that are! If all the ILLEGALS were fired, that would open up 8 million jobs! Why would an employer want to hire a teen when they have lots of people applying that have college degrees. One of the problems is there are not enough jobs being created and the ones that are the unemployed are having to compete with ILLEGALS and all those foreigners coming in on visas$$$ Until these issues are addressed, we will continue to see LEGAL AMERICANS unemployed!!!

July 13 2010 at 10:13 AM Report abuse -1 rate up rate down Reply

Have no idea on all the factors involved..but do know around 75% of all fast food chains in my mid-west city seem to have a large employment of hispanic workers..Legal or not..Possibly a factor,,none of the american kids want these jobs..

July 12 2010 at 10:38 PM Report abuse rate up rate down Reply
2 replies to ddan8719's comment
Big Daddy

I don't see no hispanics but I have seen MBAs bagging groceries, a director of sales on the floor at Lowe's and plenty of retirees at the burger joints. These are people that really need a job, not some airhead teen that doesn't really need to pay the bills, what do they really need money for accept to waste on trivia

July 12 2010 at 11:06 PM Report abuse +4 rate up rate down Reply

U r so right ddan8719-our american kids are too (Cool..) to work mcd's however they still want the air jordans right....
Think about it kiddies..some of your idols flipped burgers and worked a fryer before becoming famous or while trying to make it big- it builds character and discipline don't be so fast to say no give a shot..

July 13 2010 at 11:04 AM Report abuse -1 rate up rate down Reply

thanks to our current president- the people that have money to create jobs and own companies are penalized to death with taxes and well...... they have to cut employees. That inlcudes many franchisees that employ our teenagers.
Along with all the illegals , their are no jobs for our kids. Looks like the future----......less the leadership of this country is radically changed!

July 12 2010 at 8:02 PM Report abuse -1 rate up rate down Reply
1 reply to krbymeb's comment
Big Daddy

What tax increases taxes are actually lower and if you hire somebody you get a tax break. So your telling me that businesses could really use more people but they won't hire until they get their taxes reduced to nothing, kinda sounds like blackmail to me. If you would go spend all your savings and load up on debt we could create jobs.

July 12 2010 at 11:00 PM Report abuse +1 rate up rate down Reply
Excel Mfg.,Inc

The reason they can't find job's is the illegal residents have taken them all.They just don't do jobs we don't want to do

July 12 2010 at 6:21 PM Report abuse +3 rate up rate down Reply

This can't be true ! It's Recovery Summer remember ?

July 12 2010 at 5:36 PM Report abuse +7 rate up rate down Reply

My son has had a HORRIBLE time trying to find a job.....he's 17, a good student, never been in legal trouble, has a car and a driver's license, is well groomed, well spoken, polite, but couldn't find ANYONE to hire him. He has FINALLY found a job after over a year of searching, and starts on Wednesday, but I really feel bad for any teenager trying to find work right now. For many of these kids, it's not just the chance to get some real work experience, but I know many whose family is depending on them to help out with expenses.

I'm sure the increased minimum wage may have something to do with it, but in my son's case, he was offered a position starting at $9 per hour, well above the minimum, so it wasn't the case in his situation. What he was told by more than one employer is that there are so many adults who are out of work, that they're inclined to hire and adult with a family to support rather than a teenager still living with his parents.

July 12 2010 at 5:11 PM Report abuse +11 rate up rate down Reply

Could it be that we've raised the minimum wage too much? Employers must make the decision as to whether it's worth it to hire people, and they may be deciding the government approved price is too high. Just exactly why is it government's business if an employer wants to pay, let's say, $5.00 an hour and that's OK with the potential teen and his parents?

July 12 2010 at 5:03 PM Report abuse rate up rate down Reply
1 reply to jchowell3657's comment

You're kidding right?

July 12 2010 at 5:28 PM Report abuse -4 rate up rate down Reply

Though the economy is the main reason for the difficulty in young people getting jobs the fact that they increased the minimum wage had a lot to do with it too. There was ample warning that this would happen.

July 12 2010 at 4:47 PM Report abuse +7 rate up rate down Reply

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