The Kids Aren't Alright

Young workers have been especially hard hit by the recession, according to a report released last week by the Economic Policy Institute (EPI). As older workers delay retirement or reenter the workforce because of the bad economy, teenagers and young adults face an even greater unemployment crisis.

The unemployment rate for young workers - now at a record high 26.4% - has far outpaced that of the overall workforce since the recession began in December 2007, The Kids Aren't Alright found.  Teenagers and young adults, ages 16 to 24, only account for 13.5% of the total labor force, but one in every four unemployed Americans is under the age of 25.  "This is especially shocking compared to workers 55 and older, who make up 19.1% of the labor force but 13.4% of the unemployed," the report says.

Of even more concern is the decline in labor force participation among young people; fewer are actively searching for jobs. Young workers have also been unemployed for longer periods of time between jobs than the general workforce.

Not only are there fewer jobs available because of the recession, the reports says, but also fewer workers retiring and opening up positions. Older workers who are putting off retirement or going back to work are exacerbating an already difficult pursuit for younger workers.

"This is a troubling development - young adults are less prepared to deal with unemployment than other age groups," EPI researchers Kathryn Edwards and Alexander Hertel-Fernandez write.

Because they have not been in the workforce as long, young adults have not had a chance to save money, and are more likely to be in debt than any other age group. They often do not qualify for unemployment benefits without considerable prior work experience. Young workers who are unable to wait out the downturn take jobs below their skill level, delaying the start of meaningful work experience and careers.

The recession has created a serious drain on labor market potential, the report says. "It is not enough for the economy to recover; young adults need robust growth in the labor market to minimize the effects of the current recession."

Youth who are out of school and out of work will need additional support as the economy recovers and jobs become available. These youth - with limited education or job skills - will continue to struggle in the labor market, falling even further behind. Click here to read how the Campaign for Youth has proposed to support disconnected youth populations by providing job skills, education, training, and community-based support.

For more information on The Kids Aren't Alright, or to download the report, click here.