Wednesday, June 13, 2012

70% American Teenagers Unemployed

The Bureau of Labor Statistics reported that a whopping 70% of all U.S. teenagers are unemployed this summer. Here is a link to the official BLS report on teen unemployment.

The old teen rite of passage of cutting lawns, caddying on the golf course, and even working construction jobs like painting and roofing all summer long is disappearing.

The "official" unemployment rate for teenagers in the state of California is 36%.  Everyone admits the real number is much higher.  Even 80% in some areas.

What's the cause?  As the BLS reports, the rate has been falling for years.  It was about 50% unemployment before the latest recession.

But why now?

Why do only three out of ten teenagers have a job?

Employers are giving any jobs they have to adults.  There are plenty of experienced adults willing to work at any wage, even fast food jobs.  Why hire a 16-year old when you can hire a 26-year old to do the same job?

Teenagers will have to wait to learn necessary job skills such as showing up for work on time.

But, in reality, when will they learn them?  At age 22 after graduation from college?

Real estate investors should expect a rise in property insurance rates.  Unemployed teens equal vandalism.

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