Analysis of New Data Shows Teen Employment Picture Even Worse When Including Discouraged Job Seekers

Employment Policy Group Finds 25 States with Teen Unemployment Averaging Above 25 Percent
  • Publication Date: June 2011

  • Topics: Teen Unemployment

An analysis of newly-released Census Bureau data by the Employment Policies Institute (EPI) shows teen unemployment averaging above 25 percent in 25 states as of April 2011.

When the analysis is broadened to include discouraged teens that have given up looking for work, the picture worsens across all states, with jobless rates averaging above 27 percent in 23 states and the District of Columbia.

A full list is available below.

“The economic downturn, combined with the consequences of increases in the minimum wage, has created a labor market that’s hostile for young, inexperienced job seekers.” said Michael Saltsman, research fellow at the Employment Policies Institute.
Nationally, the teen unemployment rate stands at 24.2 percent for all teens, and 40.7 percent for black teens.

“Discarding the warnings of three-quarters of labor economists, policymakers at the state and federal level have supported wage and benefit mandates that raise the cost to hire less-experienced employees,” Saltsman continued. “In response, employers have been forced cut back on customer service or move towards automation—meaning fewer hours and fewer opportunities for people who used to fill those jobs.”

New research from Drs. William Even (Miami University) and David Macpherson (Trinity University) shows that the consequences of wage mandates at the state and federal level have been particularly severe for young black males without a high school diploma. Each 10 percent increase in the minimum wage has decreased employment for this group by 6.5 percent–more than twice the rate of young whites with the same education.

“Teens are missing out on summer jobs where they can learn valuable skills not taught in the classroom,” Saltsman concluded. “If policymakers at the state and federal level want to avoid a perpetual summer employment crisis for young adults, they should consider policies that create jobs—not destroy them.”

State Unemployment for 16-19 year-olds, April 2011

12-month average calculated with Census Bureau data

State – Teen Unemployment Rate – Teen Unemployment Plus Discouraged Teen Job Seekers

** – District of Columbia – 48.9% – 52.5%

1 – Georgia – 36.8% – 38.4%

2 – Washington – 34.5% – 35.4%

3 – Nevada – 34.5% – 36.2%

4 – California – 34.1% – 35.7%

5 – North Carolina – 32.2% – 33.9%

6 – Idaho – 31.8% – 33.1%

7 – Mississippi – 30.6% – 33.7%

8 – South Carolina – 30.0% – 30.4%

9 – Kentucky – 29.9% – 31.4%

10 – Florida – 28.9% – 31.0%

11 – Missouri – 28.2% – 29.8%

12 – Arizona – 28.0% – 29.3%

13 – Michigan – 27.9% – 29.3%

14 – West Virginia – 27.5% – 29.9%

15 – Oregon – 27.2% – 27.7%

16 – Arkansas – 26.6% – 27.6%

17 – Rhode Island – 26.5% – 27.9%

18 – Montana – 26.4% – 27.2%

19 – New York – 26.0% – 27.7%

20 – Alabama – 26.0% – 26.6%

21 – Tennessee – 26.0% – 26.9%

22 – Louisiana – 26.0% – 27.3%

23 – Illinois – 25.8% – 27.2%

24 – Colorado – 25.7% – 26.3%

25 – Hawaii – 25.5% – 27.5%

Technical note: The unemployment rate in the first column is calculated as the number of unemployed teens over the teen labor force. In the second column, the number of discouraged teen workers is added to the unemployed and the labor force.