California has spent years enacting some of the most aggressive minimum wage increases in the nation. New labor data now suggests that these wage policies are starting to take a toll on the state’s youngest workers. In April 2025, California ranked among the top five states in unemployment rates as well as the bottom five in labor force participation rates for 16 to 19 year olds. Rather than opening doors, this long history of increasing wage mandates appears to be closing them, especially for teens just beginning to look for work.
Entry-level service jobs, such as in restaurants or retail, have historically been a vital starting point for young workers. These jobs are not just a source of income, but also a stepping stone to future employment. However, when rising labor costs and ongoing wage hikes make it harder for businesses to maintain entry-level positions, the result isn’t just fewer jobs, but fewer opportunities for the next generation of workers.
To evaluate the impact of California’s longstanding wage policies, EPI analyzed data from the U.S. Census Bureau’s Current Population Survey (CPS). For 16 to 19 year olds, California’s unemployment rate rose from a 12-month rolling average of 19.7 percent in April 2024 to 21.2 percent in April 2025, a 7.6 percent increase. That figure is nearly double the national average unemployment rate of 12.3 percent in April 2025.
In fact, California ranks among the top five states with the highest teen unemployment rates, following the District of Columbia and Colorado. This ongoing disparity indicates that California’s youth may face greater hurdles to securing employment compared to their peers in other states.
Even more concerning is the sharp decline in labor force participation among California teens. Compared to April 2024, the average participation rate of California’s teens this year has dropped by 10.1 percent. This decline suggests that some teens have become discouraged by the limited opportunities and have withdrawn from the workforce altogether.
To put this into context, California’s teen labor force participation rate (27.0 percent) was among the lowest in the nation in April 2025, only behind New Jersey, New York, and the District of Colombia. California falls far behind the national average teen labor force participation rate of roughly 44 percent in April 2025.
For one of California’s largest cities, the story is even more complex. In the last year, the average teen unemployment rate in Los Angeles County surged more than 20 percent (from 16.3 percent unemployed in April 2024 to 19.7 percent unemployed in April 2025). These numbers suggest that even in urban hubs, young job seekers are increasingly being sidelined.
This rise in unemployment comes alongside Los Angeles’s recently passed $30 minimum wage for tourism and hospitality workers, scheduled to go into effect in July 2025. The policy is intended to address local cost-of-living pressures but will more likely add another layer of strain on entry-level jobs in the city, making it harder for teens and entry-level workers in LA to find and keep jobs.
As California continues to expand wage mandates, it’s crucial to carefully consider the broader economic implications of such policies. The latest data raises concerns that the state’s long history of drastic wage increases is contributing to rising teen unemployment and a declining labor force. Rather than helping young workers get a start on their career, these policies may be placing California teens at a disadvantage compared to their counterparts in other states. It is more important than ever to develop thoughtful policies that protect youth employment opportunities and prevent making an already difficult situation worse for young workers.