Children's Defense Fund

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July 2, 2004  
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Ron Eckstein: (202) 662-3609
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Teen Joblessness Hits an Historic High in June

Businesses Hired Far Fewer Workers Than Expected

Washington, D.C. - The jobless rate for American teens rose to an historic high in June, according to a Children's Defense Fund (CDF) analysis of data released today by the Bureau of Labor Statistics— leaving three out of five teens without summer work. Only 112,000 jobs were created in June for the total population, less than half of what was widely expected. In the previous three months, the average had been 297,000.

"These job numbers are disappointing," said Deborah Cutler-Ortiz, CDF's Director of the Family Income & Jobs Division. "The unemployment rate has remained unchanged at 5.6 percent since the recovery began. Over one million jobs have disappeared since March 2001, and the job picture for teens is particularly bleak."

Almost 60 percent of teens were jobless last month, the highest June jobless rate since the data were first collected in 1949 . Joblessness for minority teens continued to be much higher than for their White counterparts. More than 77 percent of Black teens were jobless in June, which represents three out of four Black teens. Latino youth joblessness, at over 68 percent, is at the highest level recorded since data on Latino teens began being collected.

The Administration and Congress could do much more to help workers. Last year the Bush Administration proposed to eliminate the Workforce Investment Act's (WIA) Youth Opportunity Grants Program, which provided teens living in high poverty areas with crucial job training and skills. This year the program received no funding by Congress, nor is funding provided in the 2005 budget. Under the Job Training Partnership Act (JTPA), the predecessor to the WIA program from 1996-1999, nearly $900 million per year was targeted to summer jobs programs for teens. Currently, WIA does not allocate any funds specifically dedicated to this, leaving millions of teens with no help in finding summer employment.

"Failing to support youth employment is poor social policy and will have long-term impacts on the nation as a whole," Cutler-Ortiz said. "Today's teens will be the backbone of tomorrow's economy. Those who cannot obtain the job skills and experience they need, will have a harder time competing in the job market. The Administration continues to tout an improved economy, but the numbers are not there to support this notion. Not enough is being done to improve the economy and the condition for workers― especially for our teens."

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The mission of the Children's Defense Fund is to Leave No Child Behind and to ensure every child a Healthy Start, a Head Start, a Fair Start, a Safe Start, and a Moral Start in life and successful passage to adulthood with the help of caring families and communities. CDF provides a strong, effective voice for all the children of America who cannot vote, lobby, or speak for themselves. We pay particular attention to the needs of poor and minority children and those with disabilities. CDF educates the nation about the needs of children and encourages preventive investment before they get sick, into trouble, drop out of school, or suffer family breakdown. CDF began in 1973 and is a private, nonprofit organization supported by foundation and corporate grants and individual donations. We have never taken government funds.

 

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