Youth Employment in Connecticut By Matthew Krzyzek, Economist, DOL, [email protected] or many, summer is a time found in many charter schools Vehicles data to identify the age of F for relaxation. The season is within Connecticut has also con- workers and industry in which they typified by sunny weather, family tributed to higher summer school were employed. The data collection vacations, barbeques and trips to enrollment rates. College students resulted in a baseline of 1,423,880 the beach. However, the season accepting unpaid internships (for people employed in Connecticut also represents a young workers academic credit) also decrease labor during 2010Q2, with 216,516 (15%) initiation into the labor force. Be it force participation. Summer travel of those employed under 25 years work as a camp counselor, life- and family affluence can further old by the start of that quarter. guard, salesperson or waitress, deter youth labor force entrance. Connecticut youth employment those summer jobs teach youths is concentrated in retail trade, food valuable skills they will carry with Youth Unemployment service and health care, which them onto enhanced employment The recent recession has encompass a combined 56 percent opportunities later in life. Unfortu- brought us the highest unemploy- of total youth employment. From nately, for a growing number of ment rates in decades. Unemploy- 2010Q2 to 2010Q3, (the highest American youths, these jobs are ment rates for adults under 25 are quarter for youth employment), we increasingly hard to find. typically double what the national saw a 73% increase in youth average is, with May 2011 unem- employment in public administra- Long Term Trends ployment nationally at 8.2 percent tion sector from 4,211 to 7,267, Fewer teens and young adults and 17.3 percent for people under mainly due to one time federal are working or seeking work. Youth 25. Teenagers fared worse than stimulus youth employment pro- labor force (16-24 years old) partici- workers in their early 20s, having grams. Youth employment in pation rates have declined steadily May 2011 unemployment rates of health care grew 24 percent and from the late 1980s onward, peak- 24.2 percent. In fact, of all available food service grew 21 percent. ing at 69 percent during 1989Q3 age ranges, Americans under 25 Overall youth employment grew by and falling to its current 55 percent have consistently endured higher 12 percent during the period. national level. Educational enroll- unemployment rates than any age Connecticut’s seasonal increase ment has significant impact on group in the last 30 years. in summer youth employment youth participation rates, as full- Annual unemployment data by needs to be put in perspective. In time students are less likely to seek age cohort using the Current 2007 summer youth employment work throughout all but the sum- Population Survey (CPS) shows also grew by 12 percent over Q2, but total youth employment fell by mer months. Connecticut youth unemployment nearly 25 percent between Q3 2007 July is typically the peak month rates of 18% in 2010, a 7.9-point and Q3 2010. For all age groups of summer seasonal employment. increase since 2007. Last year’s the decline was only 9 percent. Increasing summer school enroll- youth labor force was 245,000, a ment has had noteworthy effect on 3,000 decline since 2007. For all Conclusions labor force participation. School age groups, Connecticut’s unem- The “Great Recession” has been enrollment during the month of ployed grew by 88,000 with a 4.7- hard on all workers in Connecticut. July for youths aged 16-19 has point increase over the same Housing values have eroded, increased nationally from 10.4 period. Youth have clearly suffered personal net worth has tumbled, percent in 1985, the first year of more unemployment than the labor and unemployment is at its highest in nearly three decades. Amid this data, to 45.5 percent in July 2010. market at large. turmoil the issue of youth unem- Morisi notes that more rigorous ployment has been largely hidden. high school graduation require- Employment Youth’s unemployment doubled the ments in many states have bol- To discover where the Connecti- national average and experienced a stered the need for summer cut youth are employed we used three-year decline in employment school.1 The increasing popularity Unemployment Insurance Wage greater than any other age cohort in of year-round school cycles as Records and Department of Motor Connecticut. The data illustrates the magnified burden faced by Top Youth Employment Industry Sectors in Connecticut younger workers within Connecticut 2010Q2 2010Q3 and the nation. While much atten- Industry tion during the past recession has Employed Percent Employed Percent properly focused on 99ers, we must 58,838 27.17% 62,081 25.58% Retail Trade not forget that for those new to the 42,624 19.69% 45,818 18.88% Accomodations & Food Service labor market, finding a good job will 24,800 11.45% 28,171 11.61% Health Care & Social Assistance be a significant challenge. 12,580 5.81% 15,213 6.27% Arts & Entertainment ______________________________ 1Morisi, Teresa The Early 2000s: A Period of 11,733 5.42% 14,575 6.01% Educational Services Declining Teen Summer Employment Rates. 13,417 6.20% 14,214 5.86% Administrative Bureau of Labor Statistics, May. 2010. 216,516 242,675 Total Youth Employment July 2011 THE CONNECTICUT ECONOMIC DIGEST O3.