Unemployment Takes a Toll on Teens
Friday, November 06, 2009SUSIE GHARIB: The job market is even harder on teens. The unemployment rate for teenagers surged to 27.6 percent in October, up almost 2 percent from the previous month. That is as high as it's been since the Department of Labor began tracking unemployment. As Darren Gersh reports, that has important implications for the future.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: For young people looking for work now, this recession feels more like a depression.
UNIDENTIFIED FEMALE: I've been meaning to get like a second job, but people tell me like, it's so hard to find a job nowadays.
UNIDENTIFIED FEMALE: Everyone, everyone I talk to, um, is saying how hard it is to find a job.
UNIDENTIFIED MALE: I've been walking around campus, going outside of campus looking for jobs. There's just nothing available.
GERSH: For teenagers, unemployment rates look more like batting averages than economic stats. Thirty percent of 16 and 17 year olds, one out of three, are unemployed. That's up from 20 percent before the recession began. Twenty five percent of 18 and 19 year olds, one out of four, can't find work. Economist Heidi Shierholz says rising teen unemployment is a troubling sign for the rest of the economy.
HEIDI SHIERHOLZ, ECONOMIST, ECONOMIC POLICY INSTITUTE: Teen workers are the first people fired during a recession and they're the last people hired at the end of the recession. If an economy is doing well, teen workers get brought in, because there's lots of opportunities there. If it's not, they really flounder.
GERSH: Holiday hiring may provide some relief. Human resources consulting firm Aon surveyed big retailers and found 20 percent of them intend to hire more students this season.
PATRICK TOMLINSON, SR. VICE PRES., AON: Additionally, since it's been so uncertain in the economy, a lot of the employers kind of held off a little bit later than they normally would to fill those jobs. So if you're looking very, very short-term to go ahead and try and find an opportunity, that opportunity is really still there.
GERSH: While many teens can avoid the tough labor market by heading for college, not all are so fortunate.
SHIERHOLZ: There are 19 year-old high school graduates who are providing a significant portion of their family income who should be starting on their careers or on their apprenticeships and if those jobs aren't there for them, that sets those young workers back for their entire careers.
GERSH: With the labor market looking sluggish, Shierholz expects teenagers will face high levels of unemployment for another five years. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.
