Mark Perry has an interesting post at the Enterprise Blog where he discusses the current unemployment rate for teens.
As indicated by the graph below, increasing the minimum wage has a pronounced effect on teen unemployment.
From Perry’s post,
The chart above of the teenage jobless rate and minimum wage over the last four recessions helps to illustrate how the 2008–2009 recession by itself would have been bad enough for teenage employment, but coupled together with the 41 percent minimum wage increase it created the worst teenage job market in history.
Teenage unemployment rates have always risen during recessions, and there were several minimum wage increases that happened around the time of recessions, which likely pushed the teenage jobless rate up even higher. There was an 8.1 percent increase in the minimum wage close to the 1981–1982 recession, and a 27 percent increase around the time of the 1990–1991 recession. But those increases were nothing compared to the 41 percent increase that took place in three steps starting in 2007 just preceding the recession, followed by increases in 2008 and 2009 in the midst of the recession. The chart clearly illustrates the fact that the minimum wage increased by 41 percent at the same time that the teenage jobless rate spiked to record highs, and it’s likely that the positive relationship is no coincidence.
Raising the minimum wage in the United States by 41 percent during the last three years has denied job opportunities and training to some of those who need those experiences the most—unskilled teenage workers.
The bottom line is simple. When you increase the minimum wage certain individuals will find it even more difficult to find jobs. Employers are cutting back as it is. Higher minimum wages translate into fewer available jobs for the young and unskilled. In a time when many skilled individuals are losing their jobs and are more willing to take any job available, the bottom rung of the ladder, usually teens and the uneducated, will have even more difficulty finding work.
Would you rather have a job that may not pay as much as you would like, or no job at all?
I’d prefer having a job.
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Minimum wage laws make no economic sense. What would happen if we put a minimum selling price on cars? Cars that are not worth that minimum price would be left unsold, just like labor that is not worth the minimum wage remains unsold. Here is a funny video that explains just how the minimum wage creates unemployment: http://www.youtube.com/watch?v=AbuJYhX3prc
I would like to know the unemployment rate for teenagers who live in the city of Wilmington. Labor Statistics has the data but I woulld have to go through a bunch of hoops to get it. Can you help me out. giles1129@comcast.net