Summer Youth Employment Rates Plunge
August 16, 2010
by Katie Meade
Summer jobs prospects for teenagers have been diminishing steadily over the past decade, but early data for June 2010 show that employment rates for the nation’s 16- to 19-year-olds have fallen to stunning new lows.
According to a new analysis by Northeastern University’s Center for Labor Market Studies (CLMS) for the Mott Foundation, only 29 percent of teens in this age group were working this June — as compared to nearly 40 percent in June 2007 and more than 51 percent in June 2000. Before 2007, the summer youth employment rate had never fallen below 40 percent in the post-World War II era. Now, just three years later, the teen employment rate has plunged below the 30 percent threshold.
Fewer Jobs, Long-Term Consequences
Although teenagers are not unique in facing steep job losses, this age group has been most dramatically affected over the past decade. By contrast, the CLMS report, “Vanishing Work Among U.S. Teens, 2000-2010: What a Difference a Decade Makes!” documents that Americans over age 55 are more likely to be working now than they were working in 2000 — an age reversal in employment outcomes unprecedented in American history.
Lower employment rates among 16- to 19-year-olds can have long-term, detrimental effects. The more a teenager works this year, the more likely it is that he or she will work next year. Because of the cumulative effects of work experience, limited or no work experience during the teen years leads to decreased employability and lower wages as young adults. Research shows that teenagers who work during high school are less likely to drop out before graduation, and are more likely to make connections between school, work and career goals.
The American Recovery and Reinvestment Act (ARRA) provided federal funding for summer youth employment programs around the country in 2009, bringing new energy and creativity to local summer jobs initiatives. However, Congress failed to approve additional funding this year specifically targeted to support subsidized jobs for youth.
Local Strategies to Fund Summer Youth Employment Programs
With the future of federal support for summer employment quite uncertain, municipal leaders are again seeking new ways to fund summer jobs programs for teens.
The Finance Project recently developed a Promising Practices Profile on “Financing and Sustaining Summer Youth Employment Programs.” This issue brief highlights three cities — Hartford, Conn., New York City and Seattle — where local leaders used program innovations and creative financing strategies to support summer youth employment programs in 2009 and strengthen the foundation for similar efforts in the years ahead.
For instance, New York City's Department of Youth and Community Development used a debit card payment system and Web-based job application system to save money on administrative costs. Partnerships in Seattle leveraged local and state funding for summer jobs and engaged businesses in providing mentoring and job shadowing opportunities. Hartford's workforce investment board developed a guide for employer participation in providing summer internships.
Municipal leaders are continuing to explore ways to promote youth employment in the coming years. Last month the Philadelphia City Council approved a youth intern tax credit to reward local businesses for hiring young people. The credit will go into effect in 2012.
Details: To learn more about local efforts to sustain summer jobs for youth, contact Andrew Moore at (215) 848-6910 or moore@nlc.org.
To access the Finance Project’s Report on “Financing and Sustaining Summer Youth Employment Programs, visit http://www.financeproject.org/publications/PPP-SYEP.pdf. To download the Center for Labor Market Studies report, visit http://www.clms.neu.edu/.