December 30, 2013

It Wasn’t the Same Recession for Everyone

The Great Recession of 2007-2009 was not the same for everyone. Some never lost a job during this period, some were briefly out of work, some were out of work for long periods, and some fell out of the workforce altogether.

A new study from the New England Journal of Public Policy focuses on the state of youth unemployment, specifically how the recession disproportionately affected workers age 16-24, especially Latino and African American youths (New England Journal of Public Policy, “Global and Local Youth Unemployment: Dislocation and Pathways,” Volume 25, Issue 1). Even now as the economy continues to slowly climb, these workers are twice as likely to be unemployed compared to adults. According to the study,
The chance of finding employment depends largely on one’s employment history. Employment history is especially important for young people. National studies have shown that early employment experiences shape a young person’s earning potential for the rest of his or her life.


The sobering observation here is that the recession may not be a temporary problem for many young workers, but could have repercussions in later years.

The study attempts to offer some light at the end of the tunnel. It summarizes the Massachusetts Workforce Investment Board’s recommendations, which include increasing the number and quality of work experiences and career exploration activities for in-school and out-of-school youths. This recommendation is based on the belief that working at a young age increases a youth’s chances of finding good employment later in life. “Research has shown that a teenager who does not have a job during high school is more likely to be disconnected from the labor market after high school,” the study  states.