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Yesterday's Employment Situation Report from Uncle Sam's Bureau of Labor Statistics had lots of dismal news.
One of the bigger disappointments, but sadly not one of the bigger surprises, is that the teenage unemployment rate reached an all-time seasonally adjusted high of 25.5%.
People who know even a little bit about economics should understand why, but an oddly titled (Oh What a Time to Be Young!) New York Times blog by Catherine Rampall took a pass on realistically trying to explain it.
Luckily, the Internet format allows readers to make up for the oversights of posters:
Undoubtedly due to minimum wage increases. I don’t know of a single business that kept on as many teenage workers when the minimum wage increased. -- Josh
Higher minimum wages will kill job prospects for the young. In 27 years of business I never paid just the minimum wage, but now I have to in California. It costs way too much to train someone before they become productive; it’s just not worth it and now I am much more likely to cut my losses with a slow learner rather than train them more. -- Jon A
.... This happens every time they increase the minimum wage; teenagers are laid off and their wages are spread around to pay the remaining workers’ higher wages. The first full month of the new minimum wage, 150,000 teens lose their job. It is a sadly predictable result of liberal policy. -- Vitalis
Wow. The kids are applying for unemployment* instead of just going back to school and studying. Free is free. When I was in school, I never considered applying, even though I could have. -- Cathy
[* Hook 'em on government dependence early and you'll have 'em for life.]
The federal minimum wage was increased to $5.85 on July 24, 2007; to $6.55 on July 24, 2008; and to $7.25 on July 24, 2009. In July 2007, teenage unemployment was at 15.1%. By August 2008, it was at 19.2%. Now we're at 25.5%.
I'd say there's a correlation, and that the press isn't willing to make it. The minimum wage is a favorite of the left, no matter how many kids and low-skilled adults it throws out of work. Supporting minimum-wage increases is considered one of the things the late Sen. Ted Kennedy "got right."
I don't see how.
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