Youth Unemployment: A Puzzle for Any Story
By Arnold Kling
Every age group has seen a substantial drop in the employment-population ratio during this Lesser Depression, but no other group I’ve seen comes close to this plummet. For the first time in half a century, a majority of young people aren’t working.
I think it is hard to tell a sticky-wage story for new entrants to the labor market who do not have any wage history. By the same token, it is hard to tell a story in which these young people started out in one industry and then lost their jobs to a shift in demand or technology.
On the whole, though, I think I would rather start with a PSST story. Entrepreneurs are having a hard time coming up with productive uses for anyone other than health care professionals or software engineers.