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Why America’s Youth Aren’t Finding Jobs

  • August 6, 2013
  • The Progressive Policy Institute

Writing on youth unemployment, Fortune’s Nin-Hai Tseng quotes Diana Carew:

“They’re not in school, so what are they doing?” says Diana Carew, economist at Progressive Policy Institute, who studies youth unemployment. She points out that July’s jobs report shows that the share of unemployed 16- to 24-year-olds not in school stood at 17.1%, compared with 11% six years ago. And while workers in general have been leaving the labor force, partly because they’re aging into retirement, it’s especially worrisome when young people drop out: In July, 8.4 million 16- to 24-year-olds stopped looking for work altogether, a rise from 6.8 million a year earlier.

However slowly the economy has been creating jobs, it’s still surprising why so many young people, particularly those who aren’t in school, are still having a tough time. The bulk of jobs created in July were in retail, restaurants, and bars. These certainly aren’t the highest-paying gigs, but they demand fewer skills and would naturally attract those with less education. What’s played out is what Carew calls “The Great Squeeze,” where the dearth of middle-skilled jobs have forced many workers to settle for whatever they can get, taking lower-skilled jobs for less pay and therefore squeezing those with less education and experience out of the workforce.

Read the entire article here.

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