Is Minimum Wage Increase Responsible For Record Teen Unemployment?

[red states rule]

Another example on how liberal policies hurt the people they claim to care about



The Young and the Jobless
The minimum wage hike has driven the wages of teen employees down to $0.00.


Yesterday's September labor market report was lousy by any measure, with 263,000 lost jobs and the jobless rate climbing to 9.8%. But for one group of Americans it was especially awful: the least skilled, especially young workers. Washington will deny the reality, and the media won't make the connection, but one reason for these job losses is the rising minimum wage.

Earlier this year, economist David Neumark of the University of California, Irvine, wrote on these pages that the 70-cent-an-hour increase in the minimum wage would cost some 300,000 jobs. Sure enough, the mandated increase to $7.25 took effect in July, and right on cue the August and September jobless numbers confirm the rapid disappearance of jobs for teenagers.

http://s.wsj.net/public/resources/images/ED-AK274_1minwa_D_20091002172819.gif

The September teen unemployment rate hit 25.9%, the highest rate since World War II and up from 23.8% in July. Some 330,000 teen jobs have vanished in two months. Hardest hit of all: black male teens, whose unemployment rate shot up to a catastrophic 50.4%. It was merely a terrible 39.2% in July.

The biggest explanation is of course the bad economy. But it's precisely when the economy is down and businesses are slashing costs that raising the minimum wage is so destructive to job creation. Congress began raising the minimum wage from $5.15 an hour in July 2007, and there are now 691,000 fewer teens working.

http://online.wsj.com/article/SB10001424052970203440104574402820278669840.html

[crin63]

Personally I think it has more to do with the entitlement attitude and the appearance of most kids that keep people from employing them. So many of them think that work is beneath them.

My kids have never had a problem getting and keeping jobs as teens. They showed up in ties with resumes in hand when they went to get the applications for employment. They work hard and make the companies they work for look good. I actually have and had people waiting to hire my children as they become/became old enough to work. My daughter is 15 and already has employment waiting for her at a doctors office when I am ready to let her work. I'm not bragging on me or my kids, I'm just saying that attitude and appearance have a huge amount to do with employment for kids at least in an urban area like Los Angeles.

Although I am opposed to minimum wage on principle.

[Noir]

Could be,

But you can't disclude the many other factors that are involved,

For example all the unemployed middle-aged people. I'm looking for a job at the moment and am finding it very tough, because when i'm going to the interviews not only do i find i'm against peers my own age, but also many 30/40/50 year olds, who have been pushed out of work during the downturn and are now looking to get there hands on any job, even those normally given to students/young people, and as middle-aged folks will have more experience and so forth they will always have the advantage over us young 'uns.

[Trigg]

Could be,

But you can't disclude the many other factors that are involved,

For example all the unemployed middle-aged people. I'm looking for a job at the moment and am finding it very tough, because when i'm going to the interviews not only do i find i'm against peers my own age, but also many 30/40/50 year olds, who have been pushed out of work during the downturn and are now looking to get there hands on any job, even those normally given to students/young people, and as middle-aged folks will have more experience and so forth they will always have the advantage over us young 'uns.

I'd have to agree with your reasoning. Older people are now applying for minnimum wage jobs and employers would rather employ people who have families over teenagers and college kids.

It shows how bad our economy is when people in their 40's/50's are working at the local McDonalds and Dairy Queen.

I'd love for my son to get a job, and believe me he's put in applications everywhere. But, I'd rather a person with a family get a job over him. He's working for gas money, they're working to feed their kids.

[crin63]

My friend just ran ad a week ago looking for 2 part time people for $12/hr. He received 4 straight hours of phone calls until he shut the phone off and changed the number and more than 600 emails.

My 20 year old son beat out dozens of people in their 30/40/50's for his current position with a major non-profit corporation. My 23 year old son is the opening manager for a major shoe chain at a large mall and his star appears to be on the rise with the company. My kids are not exceptionally intelligent, they just work hard, are loyal and have good communication skills forged from sales jobs in their teens. They look like normal people, with regular type mens haircuts and dress for success.

Speaking of dressing for success. I highly recommend the book, "Dress for success".

[red states rule]

I'd have to agree with your reasoning. Older people are now applying for minnimum wage jobs and employers would rather employ people who have families over teenagers and college kids.

It shows how bad our economy is when people in their 40's/50's are working at the local McDonalds and Dairy Queen.

I'd love for my son to get a job, and believe me he's put in applications everywhere. But, I'd rather a person with a family get a job over him. He's working for gas money, they're working to feed their kids.

Increasing the cost of doing business is the bottom line. In a small business or a mom/pop operation the increase of the minimum wage made it necessary NOT to hire