Unemployment Among Teenagers Remains Stubbornly High

Another benefit of being old!  :>

From the Wall Street Journal | Aug 10, 2009 By ERICA ALINI

Economists
don't see much relief for unemployed teenagers in a recession that has
trimmed hires and pulled many adults into the scramble for jobs
typically held by teens.

Unemployment of people ages 16 to 19 was a seasonally adjusted 23.8%
in July after hitting a quarter-century high of 24% in June, the
government said last week. That compared with last year's summer peak
of 20.5%.

Reuters

Caleb Cross, 16 years old, waits to apply for a summer job funded by stimulus money in Fort Worth, Texas, in June.

Traditional
teenage jobs now draw competition, for example, from "stay-at-home moms
looking to boost the family income to retirees seeking to supplement
their pensions," said John Challenger, CEO of Challenger Gray &
Christmas Inc., an outplacement firm.

For white teenagers ages 16 and up, July's jobless rate of 22.2% was
the highest since record-keeping began in 1954; among African-American
teens, it was 35.7%, nearly four times the national average of 9.4%.

Layoffs and stock-market losses have increased parents' reliance on
kids' part-time jobs to help pay for ever-rising college costs. A weak
youth labor market is putting "a real crimp" in Americans' ability to
afford a four-year degree, said Harvard University labor economist
Lawrence Katz.

The scarcity of jobs also means more middle-class teens work at jobs that fatten wallets rather than résumés.

Emily Weingart, a sophomore at Boston University, sent out about 20
applications to find a summer internship at a veterinary clinic.

But the 19-year-old, who lives in Westport, Conn., heard back from
only one employer, who later turned her down because, she said, "they
didn't have the resources to train someone without experience."

So Ms. Weingart spent six weeks this summer working for $7.17 an
hour as a counselor at a summer camp at her hometown's Westport Weston
Family Y. "It got me the hours," said Ms. Weingart, but not the
experience.

In turn, when better-educated teens, like Ms. Weingart, step in line
to apply for jobs at retailers or fast-food outlets, they make for
strong competition for lower-income teens, Mr. Challenger said.

For these teens, a summer or part-time job is often a stepping stone
to gain access to higher-skill, better-paying positions, according to
Michael Gritton, executive director of Kentuckiana Works, which helps
dislocated workers and needy youth find jobs in the greater Louisville,
Ky., region, which also includes parts of Indiana.

Aiyana Kelley, a 15-year-old in Phoenix, found a job through a
program in her city that was among recipients of $6.2 million in
federal stimulus money to help local youth in need gain work experience.

Ms. Kelley got a two-month internship at the Human Services
Department of Maricopa County, Ariz.; she took home her first paycheck,
for $300, in June, shortly after her mother got a pay cut and the
family went on food stamps.

"I've been trying to get a job since I was 14," Ms. Kelley said. "I was thrilled."

Write to Erica Alini at Erica.Alini@wsj.com