EPI+-+The+Kids+Arent+Alright

EPI+-+The+Kids+Arent+Alright - Economic Policy institutE...

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Unformatted text preview: Economic Policy institutE 1333 H strEEt, nW suitE 300, East toWEr WasHington, Dc 20005 202.775.8810 WWW.EPi.org EPI BRIEFING PAPER E C O N O M I C P O L I C Y I N S T I T U T E A P R I L 7 , 2 0 1 0 B R I E F I N G P A P E R # 2 5 8 U nemployment does not equally affect all workers. Different segments of the population often have different rates of unemployment, whether the distiction is made by race, gender, education, or age. While the national unemployment rate has yet to meet the dismal 10.8% benchmark set in 1982, certain subgroups have, since the start of the recession in December 2007, reached post-War unemployment highs. One of these groups is workers age 16-24, whose unemployment rate peaked at 19.2%. Though young adults represent only 13.5% of the workforce, they now account for 26.4% of unemployed workers. This Briefing Paper will discuss the severity of the unemployment crisis facing young adults, its historical context, and the implications for their future wages and skills. Young adults in the labor market Even during periods of economic expansion, younger workers experience higher unemployment. Figure A shows the relationship between unemployment among workers aged 16-24 and the total population. The unemployment rate for young workers at any time averages around twice the rate for all workers. The cause for this is typically attributed to young adults unique position in the labor marketthey are not as settled into an employer or career as older workers are. Indeed, the youth labor market is characterized by more churning than other age groups as workers try out new fields, different employers, and different cities (Elwood 1982; Gardecki and Neumark 1998). Some see this churning as positive because job mobility can be associated in part with the search for higher wages (Neumark 2002). Topel and Ward (1992) found that a typical worker will hold seven jobs in her first 10 years in the labor market, often motivated by an opportunity for higher pay. T A B L E O F C O N T E N T S Young adults in the labor market ................................................1 Unemployment .....................................................................................2 Labor force .............................................................................................. 6 Implications ............................................................................................8 Conclusion ............................................................................................... 9 www.epI.ORG THE KIDS ARENT ALRIGHT A Labor Market Analysis of Young Workers B y K a t H r y n a n n E E D W a r D s a n D a l E x a n D E r H E r t E l - F E r n a n D E z E P i B r i E F i n g Pa P E r #258 a P r i l 7, 2010 Pag E 2 F I G U R E A Unemployment rates of young adults and the total population, 1971-present NOTE: Shaded areas denote recession....
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This document was uploaded on 10/27/2011 for the course LABOR STUD 100 at Rutgers.

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EPI+-+The+Kids+Arent+Alright - Economic Policy institutE...

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