Sunday, July 07, 2013

left behind by the "recovery"...,


pbs | Paul Solman: Northeastern University economist Andrew Sum is featured in our youth joblessness story on the NewsHour Friday. His full picture of the crisis is essential reading, however, and so we share more of my interview with him here. For example, if you are a poor African-American high school teenage dropout, your likelihood of having a job is -- 5 percent.

Paul Solman: You have used the term "age twist" to describe today's job market? What do you mean?

Andrew Sum: What has happened is not a flat trend where every age group is moving up and down together as jobs grow and shrink. The younger you are, the more likely it is that you've been thrown out of the labor market. So for 16, 17, 18-year-olds, their employment rates have dropped to about half what they were a decade ago. Meanwhile, people 57 and over are more likely to be working today than they were in 2000. But the younger you are, the more likely it is you've been thrown out of the market.

Paul Solman: How does that compare to the historical relationship between age and joblessness?

Andrew Sum: Up until 1995, older workers were retiring more from the labor market so their employment rate was actually declining -- from the 1960s -- and then, starting in the 1990s, it began to change. The baby boomers were getting older. They had different work behavior and were more likely to stay in the labor market than their predecessors.

Paul Solman: That's people like us?

Andrew Sum: That's absolutely right. But among the young, we began to observe the problem after 2001. When the boom ended in 2000, the labor market, like it always does, generated lots of job losses for young people. What was different this time was that when the economy recovered, it generated no net new jobs for teenagers. Then along comes the 2007-2009 Great Recession, and the labor market for young people is destroyed.

The sad thing is that since the nation began to add jobs in 2009, we've created about 5.2 million additional jobs for America's workers. Teenagers in the aggregate received none of them. Not one.

Paul Solman: So, there are no more jobs for teenagers today than there were when the recovery started in 2009?

Andrew Sum: That's right. Not one.

Paul Solman: How do you explain that?

Andrew Sum: The labor market is still in a depressed state. Employers are telling us, and showing this in their behavior, that they'd rather hire older workers and young adults than teenagers. They find that they can do it. When we were talking to employers and I asked them about customer service, "Why were you hiring younger college grads rather than teenagers?"

They said, "For one reason, because I can." They've got choices about whom to hire and teenagers just unfortunately are at the very back of that queue.

4 comments:

umbrarchist said...

Where are economists talking about John Maynard Keynes saying we could have a 15 hour work week by 2030?


Has Planned Obsolescence been creating EMPLOYMENT for the last 50 years? Where did all of the DEPRECIATION go?

Ed Dunn said...

Gotta love this PBS video picks out the most undesirable minorities with papers on them as the face of the youth unemployment. I guess all the young, straight and narrow unemployed minorities were too busy playing Minecraft to have an interview with...

CNu said...

lol, come now brah, it IS the primary organ of the establishment, properly and directly bought and paid for...., (without further qualifying that observation, it took me a dayyum long time to figure out that both PBS and NPR do one helluva job delivering the core Brookings narrative.)

Uglyblackjohn said...

You knew things were getting bad when teenaged babysitters were being replaced by day care, when kids having paper routes from their bikes were being replaced by adults doing those same routes from their cars, and when kids mowing lawns for ten bucks a pop were replaced by adults mowing yards for fifty bucks. The job market has been a mess for a good while now...

Fuck Robert Kagan And Would He Please Now Just Go Quietly Burn In Hell?

politico | The Washington Post on Friday announced it will no longer endorse presidential candidates, breaking decades of tradition in a...