Unbelievable: Jobless Rate For Young Is 25%—and Rising

Discussion in 'Economics' started by S2007S, Apr 13, 2011.

  1. S2007S


    Now that statistic is quite interesting, 25% and rising that just says a lot right there....They are talking about raising the minimum wage which I thought by now would have least gone through but with increase in minimum wage this could also slow down the hiring process of new teenagers into the work force as well. Should be interesting to see where this goes over the next few months as kids who are out of school start looking for temporary employment for the summer!

    Teenage Wasteland: Jobless Rate For Young Is 25%—and Rising
    CNBC.com | April 13, 2011 | 03:40 PM EDT

    A quarter of teenagers were jobless in March, a surprising increase from February even as the unemployment rate for the rest of the population decreased.

    This figure may only get worse if budget-strapped states raise the minimum wage, and it could also be a sign of greater structural damage underlying our economy, analysts said.

    The unemployment rate for 16- to 19-year olds jumped back up to 24.5 percent in March, up from 23.9 percent the prior month, according to the latest jobs data from the Labor Department.

    The total unemployment rate fell to 8.8 percent from 8.9 percent.

    “Even when comprehending that teen employment is volatile in nature, the data that exists serves up some shock and awe,” said Brian Sozzi, a retail research analyst with Wall Street Strategies, in a note Wednesday. “If these (wage) increases do go through, the prospect for teen employment will remain grim as employers search for workers with advanced skills to fill positions.”

    Twelve states including Illinois and Pennsylvania are considering a hike in the minimum wage. While this has been subject of a long-running debate, many economists and analysts say raising this pay bar may cause more teen layoffs, even as it helps those that manage to stay employed make more.

    “Minimum wage increases over the past few years has definitely made it worse,” said Peter Boockvar, chief equities strategist at Miller Tabak. “In fact, there should be zero minimum wage for teenagers, or at most, something much less than the current rate.”

    Teens typically are the first to be fired and the last to be hired back in a normal economic cycle so this rate can be considered a kind of leading indicator of employment.

    Consider that the teen unemployment rate surged to 19 percent in May of 2008, even as the overall unemployment rate ticked only slightly higher to 5.4 percent. If the teen rate continues to diverge from the overall rate, then it could be an early sign of stagnation in the overall economic recovery.

    On a more micro level, Sozzi believes the high teen unemployment rate could hurt the youth retailers that are not market share leaders in this already-finicky market. Pacific Sun [ PSUN 3.61 -0.03 (-0.82%) ] could be particularly vulnerable because of its lost share to Zumiez [ ZMUZ + (+0.00%) ] as teens save the dollars they do have to spend at their favorite places, the analyst said. The recent bankruptcy of the Sbarro pizza chain could have something to do with lost teen spending power, he said.

    Still, Sozzi said these high unemployment numbers mean much bigger structural issues are at stake for our nation than just a Sbarro slice.

    “There is an entire class of the population, young eager minds that ultimately will one day be looked upon as vital instruments in the workforce, resigned to not developing the necessary people and basic workplace skills needed to compete effectively.”
  2. wake up

    So that you will see it was just a dream

    American dream
  3. I just read this in a British newspaper as well

    Young jobless 'grim milestone' fear


    Campaign groups fear that youth unemployment will reach a record high and edge nearer the politically-sensitive one million mark when new jobless figures are revealed.

    The TUC said the UK was set to pass another "grim milestone" because of the increasing numbers of 16 to 24-year-olds out of work. The total increased by 30,000 in the quarter to January to 974,000, the highest since records began in 1992, giving a jobless rate of more than 20%.

    Read more: http://www.mirror.co.uk/news/latest...milestone-fear-115875-23057554/#ixzz1JRFcYE1w
  4. How to you expect young people to find jobs when old farts control society. Just look at the average age of politicians.
  5. 25% unemployed youth + huge debts required to get a college degree for the opportunity of a job + large Military based on the children of Middle class with long foreign combat experience who will be unable to find good work in the future when they return to the us..

    Not exactly a recipe for long term success. Look what happened in Egypt. Do you think the Army made of Middle class youth are going to shot their parents,friends to protect the interests of the government/corporate infrastructure?
  6. Control is not permanent. Look at Egypt,Libya,fall of the roman empire etc..

    Things reach a tipping point and it all goes to hell quickly.
  7. WS_MJH


    You don't need a job when you have hope and change, bitter clingers.
  8. Have you seen todays kids??? Easily 50% of them are unhireable. If you have piercings and tattoos my family isn't hiring you and many others aren't either. If your pants are falling down you're not getting hired. And using words like bro and other such "street" talk will get you a automatic, no thank you as well. Believe me, after you weed these people out there isn't a lot left.

    And lets face it, we're talking about the 16-19 year old group. The good ones go to college and either don't work or do get jobs. The rest have set themselves up for a very hard life. It's really a sad situation.
  9. Lets see,

    First the "Public School" kids are put into Liberal Scumbag re-education camp. Al Gore becomes their Prophet and teachers brain was these kids with ideology like, Communitarian ism- It takes a village, Rich People are bad, Capitalism is not the best social contract, Robin Hood was a Good Man, Revision History, Political Correctness, etc.

    The idiots that are graduating, for the most part, are now going to be unemployed before and after college.

    So, this population of the "Re-educated" robots will soon grow in numbers. As the jobless rates continue, as the cost of living rise and as many find themselves graduated with zero skills and opportunity..... we know the end of this story.

    Give Me Guns, Land, Low Taxes, and Patriots....Fuck the rest of them I say.

    French Revolution
    Egypt, and the rest of the middle east

    Coming to the USA
  10. clacy


    This is true. I hire many low skilled, younger people due to my father's business. It is truly amazing. It seems to have changed very rapidly in the past 10-15 years. It is very scary.

    Shame on the absentee parents for letting this happen. As a country, we are losing our religiosity, our moral fabric, and our work ethic in short order.
    #10     Apr 13, 2011