(image found at townnews.com)
Yesterday's Employment Situation Report from Uncle Sam's Bureau of Labor Statistics had lots of dismal news.
One of the bigger disappointments, but sadly not one of the bigger surprises, is that the teenage unemployment rate reached an all-time seasonally adjusted high of 25.5%.
People who know even a little bit about economics should understand why, but an oddly titled New York Times blog post by Catherine Rampall took a pass on realistically trying to explain it:
Oh What a Time to Be Young!
Pity the unemployed, but especially pity the teenage unemployed.
Story Continues Below Ad ↓According to today’s job report, the overall unemployment rate (the percentage of people in the labor force not working but looking for work) in August rose to 9.7 percent, its highest level in 26 years. The teenage unemployment rate, however, is at 25.5 percent, its highest level since the Bureau of Labor Statistics began keeping track of such data in 1948.
..... Of course, teenagers are likely to have fewer financial obligations than their older counterparts. But in a job market where older workers are expected to continue postponing retirement a little longer, the outlook still isn’t good for young Americans desperate for the work openings that typical turnover and attrition can offer.
Many blog post readers explained it for Ms. Rampall, and accurately. Here are some of them:
Undoubtedly due to minimum wage increases. I don’t know of a single business that kept on as many teenage workers when the minimum wage increased. -- Josh
Wow. The kids are applying for unemployment instead of just going back to school and studying. Free is free. When I was in school, I never considered applying, even though I could have. -- Cathy
Combine Cathy’s great comment with the fact that the minimum wage keeps raising such that the output they produce doesn’t match their costs, and you have all the answers you need. -- Jeffrey
Higher minimum wages will kill job prospects for the young. In 27 years of business I never paid just the minimum wage, but now I have to in California. It costs way too much to train someone before they become productive; it’s just not worth it and now I am much more likely to cut my losses with a slow learner rather than train them more. -- Jon A
.... This happens every time they increase the minimum wage; teenagers are laid off and their wages are spread around to pay the remaining workers’ higher wages. The first full month of the new minimum wage, 150,000 teens lose their job. It is a sadly predictable result of liberal policy. -- Vitalis
The federal minimum wage was $5.15 per hour from September 1, 1997 until July 24, 2007. The 1997 increase did not have a material effect on the employment market, because most employers were already paying starting workers more than $5.15. During the following 10 years, the highest seasonally adjusted teenage unemployment rate was 19.0% (June 2003).
The federal minimum wage was increased to $5.85 on July 24, 2007; to $6.55 on July 24, 2008; and to $7.25 on July 24, 2009. In July 2007, teenage unemployment was at 15.1%. By August 2008, it was at 19.2%. Now we're at 25.5%.
I'd say there's a correlation, and that the press isn't willing to make it. The minimum wage is a favorite of the left, no matter how many kids and low-skilled adults it throws out of work. Supporting minimum-wage increases is considered one of the things the late Sen. Ted Kennedy "got right." I don't see how.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters




















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Comments Policy
Because we are in a
September 5, 2009 - 22:25 ET by GregEBecause we are in a recession, the Left will have the excuse to say that there are so many adults out of work that they'll get those jobs much more quickly, regardless of wage level, than a teenager who has no experience.
I think it would always be this way, regardless of recession, because there would always be adults looking for work and maybe not finding it, and then filling those slots that would otherwise go to teenagers. The recession just pushes those occurrences way up.
Downturn was happening in mid 2008, so by August I think we would have seen a rise in teenage unemployment regardless of minimum wage hike. Would it have been the full 4.1% rise? Not likely, but I have to believe there would have been a rise. Then from that time until now, we're in major recession so it would be hard to say how high that number would have been. If these percentages are talked about in the MSM, I think they'll use mid 2008 slowdown and late-2008 thru present-day 2009 as the excuse.
Well kids, all I can say to
September 5, 2009 - 22:29 ET by nyyankee55Well kids, all I can say to you the 25% is "How's that Hopey Changey thing working for you"
"A man who doesn't borrow
September 6, 2009 - 08:05 ET by Chattychito"A man who doesn't borrow from the brains of others proves he has no brains of his own." CH Spurgeon
For some, it works great.
September 6, 2009 - 08:05 ET by JohnMcGrewSeems that they can get extendend unemployment, and get paid for doing nothing.
More teenagers would have
September 5, 2009 - 22:43 ET by mostlymoderateMore teenagers would have jobs to give them work-experience if we didn't let so many cross the border. Go ahead, take a trip down to Taco Bell, McDonalds or Burger King and see who is cooking your food. I assure you that he/she will barely speak English.
not in my area
September 6, 2009 - 00:07 ET by lbcdawnFire her editor too
September 5, 2009 - 23:00 ET by snaggletoothieOMG! A NYT writer knows zip about the subject she's writing about. Neither she or her editor appear capable of doing minimum wage level work.
Most of these teens and
September 5, 2009 - 23:28 ET by RR GOPMost of these teens and twenty-somethings aren't worth a damn even when they are "employed".
One of the 34% who thinks George W. Bush was a great President. One of the 86% who wants to bring back the stock and pillory.
Huh?
September 6, 2009 - 00:10 ET by mandrakeDid you somehow skip the years 16-25? or were you simply born an old fart?
Glad to see you think so highly of the future
September 6, 2009 - 00:33 ET by RESTLESS 1While being a male, and having passed throught the years of 16-25, I came out the other side alright. I am now raising kids of my own, and they will have my ideals impressed upon them.
Don't write off the future because you are exasperated by the present.
"If the man, with the power, can't keep it under control...some heads are gonna roll." -Judas Priest
Sorry. What I meant to
September 6, 2009 - 20:22 ET by RR GOPSorry. What I meant to say was that whether or not they're employed only matter to them, not to the country because whether most of them work or not matters little, because they have no work ethic in the first place. They can't handle the simplest instructions, resent having to work, rarely show up on time, don't show when they don't feel like it, never feel they get paid enough, stand around gabbing on their cell phones or talking to their pals rather than helping customers, steal, are rude, often high or buzzed...
Hope I clarified all that.
Also, I said "most".
However, if you have no idea what I'm talking about, then you must not get out of the house much, have never worked a minumum wage job with these knuckleheads, are/were in fact one of the irresponsible little cusses I'm talking about, or your kids are one of them and I've struck a nerve.
One of the 34% who thinks George W. Bush was a great President. One of the 86% who wants to bring back the stock and pillory.
Raise the minimum wage, put teens out of work
September 5, 2009 - 23:53 ET by R D HelmNo experience = no job= future Obama supporter.
Why is this painfully simple concept so hard to grasp for so many?
-Dave
Even when the government tries to kiss you, it is just a prelude to a good screwing. -Neal Boortz
The simplest argument against the minimum wage
September 6, 2009 - 00:27 ET by Andrew_M_GarlandWhy not set the minimum wage at $35/hour? If you think that is too high, why? Let the legislators explain the theory behind how they set the level, if they can.
Andrew_M_Garland
The dirty little secret is
September 6, 2009 - 00:50 ET by Conservative VoiceThe dirty little secret is Minimum Wage is used as a bargaining chip with Unions...as the minimum wage goes up, their wage goes up.
Its also used to convinced the brain dead zombies that liberals care.
The unions are really
September 6, 2009 - 07:51 ET by ThisnThatThe unions are really interested in "living wage". Wait till the left gets their way on that one! Very few people will be employed in the country when that happens.
BTW, that's what Obama has done with his stimulus package. See this article regarding Weatherstripping jobs in Nevada. The prevailing wage in Las Vegas for weatherization workers or for door and window replacement workers is $15 per hour. So, you can't pay anyone minimum wage with stimulus funds. The Unions won't let the Government do that.
And if you want to to more than simple weatherstripping? For air conditioning, furnace and heating installations, the wage will be $39.23 an hour. For an electrician working on these weatherization projects, the prevailing wage is $54.76 an hour, or more than $100,00/year.
___________________________________
"Tax the rich" is a basically unstable way of governing - The NYT
Didn't minimum wage recently
September 6, 2009 - 02:09 ET by deerjerkydaveDidn't minimum wage recently go up under the Dems and Bush? I recall the state run media calling it a "no brainer." Well they're partly right, they have no brains. Minimum wage is hatred for the poor. It HURTS the very people the liberals profess to be helping. The REAL minimum wage in this country is ZERO dollars an hour, or in other words unemployment. If your skill set is worth less than minimum wage, the liberals in this country would rather have you unemployed than working!
Well then, it's time for more laws!!
September 6, 2009 - 07:25 ET by motherbeltHow to solve the minimum wage/unemployment problem
James Ostrowski figured this out back in 2000!
Men and Women
September 6, 2009 - 07:47 ET by BlueCat57When did the unemployment rate for women become lower thant that for men? I missed that story. While studying economics in college the rate for men was always lower than for women. I wonder why that changed. Are women not looking? Are they hired because you can pay them less than men for the same job?
I'm surprised they didn't try to break out a rate for teenagers of color and blame that on racism and put it out as an excuse for drug problems. Then again, why would a drug dealer look for legal work and have 20% of their wages taxed away?
On the flip side 90% of people willing to work are working. And we don't have the problem they reported about Great Britain where some alarming percentage of school children came from homes in which the adults had NEVER worked a real job. It was something in the 10 to 20 percent range.
Even when it is bad in America it isn't really all that bad.
Here's what I think.
September 6, 2009 - 09:15 ET by Joe BlogsWhen you hire a woman you only have to pay $7 for a $10 job. Also, you have a compliant worker who is afraid to stand up to the boss. Last I checked these were all the reasons that companies liked bringing in illegals from 3rd world countries. You get half a slave.
Uh ...
September 6, 2009 - 10:03 ET by Tom Blumer... I don't think so.
I don't see a lot of "compliant (female) worker(s) .... afraid to stand up to the boss" in my travels.
Your implied claim of wage inequality would be comic if it weren't so widely believed. It's horse manure.
Women are getting equal pay, if not more than equal pay in some cases for equal work.
Links, please.
September 6, 2009 - 11:58 ET by Joe BlogsWhere do you travel? Women are afraid to make decisions and love to endlessly consult coworkers before taking action. Perhaps that's why bureaucracies love to hire women. The peasants never revolt - they just sulk. Unfortunately, you need more of them to get the work done, which is probably the market based reason why they get paid less. One bold male executive is worth three female teamworkers anyday.
Huh?
September 6, 2009 - 12:03 ET by Free StinkerWomen are afraid to make decisions and love to endlessly consult coworkers before taking action.
I've fixed this for you:
Some women and some men are afraid to make decisions and love to endlessly consult coworkers before taking action.
Reality check
September 6, 2009 - 17:06 ET by Joe BlogsIndecision is overwhelmingly a feminine trait.
→ Joe Blogs
September 6, 2009 - 17:14 ET by Cool ArrowWomen aren't indecisive.
Proof?
Witness the millions of women who decided "you ain't it".
We will Barry you! - Russian prophecy
The impact of illegal
September 6, 2009 - 08:58 ET by pcantidoteThe impact of illegal aliens should not be overlooked either...
Enforce Term Limits if They Won't: Vote Against ALL Incumbents in 2010.
Agreed.
September 6, 2009 - 09:29 ET by Joe BlogsRemember the movie Fast Times at Ridgemont High where all these American teenagers worked mall jobs after high school for money to buy second hand cars and save for college? They held these jobs for a couple of years, max. Not any more.
Now we live in the age of the career Latino fast food employee: the same Mexican or Guatamalan woman works that burger flipping or pizza making minimum wage job from the time she turns 15 until she is 40. She saves no money. She doesn't go to night school. She doesn't move on to better things. Her only hope is that she births enough vicious male children to form a dominant drugdealing lowrider street gang so she can retire comfortably to the projects with her wide screen TV and portable dialysis machine.
→ That's cruel
September 6, 2009 - 10:00 ET by Cool ArrowThe burger flippers around my town are Americans.
The Tex-Mex restaurants are a different story, but I really don't think their goal in life is to breed drug dealers.
We will Barry you! - Russian prophecy
Cool--
September 6, 2009 - 10:17 ET by Kat Outta the Bag"The burger flippers around my town are Americans."
My town, too; they're mostly American teenagers around here, although I have noticed that at the local Subway, the workers are older.
Where do you live?
September 6, 2009 - 11:48 ET by Joe BlogsProbably not in Arizona, California, Texas, Florida, or Nevada. Most likely in Nebraska, PA, Wyoming, or Minnesota. But they are coming to a neighborhood near you. Crime infested, Latino favelas will ring every major city and large town in the US in the next 15 - 20 years. I'll wager my 401K on it.
Joe--
September 6, 2009 - 17:02 ET by Kat Outta the Bag"Probably not in Arizona, California, Texas, Florida, or Nevada."
I actually do live in Florida, on the east coast. :-)
?
September 6, 2009 - 17:08 ET by Joe BlogsHmmm.
I agree that their goal
September 6, 2009 - 10:41 ET by pcantidoteI agree that their goal is not to breed drug dealers, but fundamental questions have to be asked: If their supposed reason for being here is because they "do the jobs that no one else will do", then I have 2 problems: First, with teen unemployment so high, don't we need to take a fresh look at who exactly is willing to do these jobs? And second, if the illegal aliens sole reason for being here is to do these jobs, then what IS their goal in life? In America do we want career minimum wage workers? Or, if they have ambitions to start businesses and get educations, shouldn't they be entering our country through the front door?
Enforce Term Limits if They Won't: Vote Against ALL Incumbents in 2010.
It's not cruel, it's the truth.
September 6, 2009 - 11:40 ET by Joe BlogsCome to LA, my friend. It's the wave of the future.
→ Joe Blogs
September 6, 2009 - 17:02 ET by Cool ArrowCalifornia has laws that promote the flocking of welfare leeches of every color. It's a function of Democrat constituency growth.
We will Barry you! - Russian prophecy
Thats a very racist thing to say Joe
September 6, 2009 - 11:54 ET by shawn228I'm not going to argue with your about the minimun wage stereotype because there is an element of truth to it, but the part of them wanting to raise drug dealing children is over the line
"I swear sometimes the self-appointed moral police are as obnoxious and demanding of big government interference as "environmentalist" gun control advocates, labor unions and trial lawyers"~fitzfong
Racist?
September 6, 2009 - 16:58 ET by Joe BlogsGesundheit.
"All-Time" High?
September 6, 2009 - 09:42 ET by CobraManEVERYTHING seems to be an an "All-Time" High, according to the press. But, what, exactly do they mean by "all time?" Are they telling us that the is is highest level that has, and ever will be, reached? That's BS. I can guarantee you that the "teenage" unemployment rate was several times higher back during the Great Depression. when 25 percent of ALL Americans of ALL age groups were unemployed. Who are they trying to fool?
BTW, the main reason the teen-age unemployment rates are so high is two-fold.
One, most teens worked on family farms for most of America's history (which is why schools close for two weeks during harvest season). Today, that percentage is in the single digits.
Two, those teenagers who didn't work on family farms usually worked for their parents in other family business. Whether they helped mend shoes, build homes, bake bread, peddle produce, or any other likely businesses, they worked with their family and learned the skills necessary to start their own family business. Today, that number of teenagers working for the family business is, just like farming, in the single digits.
Today, most people, not just teenagers, work for someone else. They don't have a business of their own. They must compete national for any available jobs. The businesses will hire people who have the skills and training required to perform a given job over the untrained people. This means that ADULTS will get those available jobs before teenagers will, especially the higher paying, higher skills jobs. So, yes, more teenagers are unemployed today than in years past (except for other recessions and depressions as they too, had unemployment rates that were at an "all-time high." Anyone spot a trend here?), but not for the reasons the NYT's understands, or will admit.
The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States.
The US Constitution
Unless you're a fetus.
The US Supreme Court
CM, your complaint is with me, not NYT
September 6, 2009 - 12:04 ET by Tom BlumerMy headline says "all-time high." They NYT blog post says "at its highest level since the Bureau of Labor Statistics began keeping track of such data in 1948." In the interest of accuracy, I have changed the post's headline to say "Record" instead of "All-Time."
Thanks for bringing it to my attention.
I wonder.
September 6, 2009 - 10:00 ET by Par for the CourseBased on the current youth unemployment rate, are these considered "saved" summer jobs now?
The administration allocated $1.2 Billion of the stimulus bill to create summer employment opportunities for youth.
The administration says it will:
(June 8, 2009)
You people are heartless!
September 6, 2009 - 10:52 ET by Kingfish17How can you expect a sixteen year old who is living at home with basically no expenses and who is saving his part-time job money for college to work for the minimum wage and support a family of four or five? It just can't be done!
"I've sentenced boys younger then you to the gas chamber. Didn't want to do it, but I felt I owed it to them." Judge Smails
→ You're right
September 6, 2009 - 10:55 ET by Cool ArrowThe liberals have convinced too many kids that living the life of a deadbeat dad or a welfare slut can be quite lucrative and socially acceptable.
We will Barry you! - Russian prophecy