Unemployed youth face a sweltering summer
By
Jaimeson Champion
Published Aug 11, 2008 7:43 PM
This summer has seen record-breaking temperatures in many parts of the United
States. It has been particularly hot for millions of young people who have
spent the sweltering summer days hitting the pavement in search of a job, only
to return home sweaty and still unemployed.
Youth unemployment has risen by an alarming 555,000 over the past three months,
according to the latest report from the U.S. Department of Labor. Even Labor
Department statistics—which deliberately understate U.S. job
loss—can’t hide the miserable fact that youth in the U.S. are
losing their jobs at an unprecedented rate.
The unemployment rate for workers under 25 years of age has increased by 2.4
percent over the past three months, according to the Labor Department. In
comparison, the unemployment rate for workers 25 years of age and older has
increased by 0.5 percent in the same time period.
These “official” rates are deliberately understated, as they count
involuntary part-time jobs as full jobs and don’t count as unemployed the
youth who no longer search for jobs because they know that no jobs exist for
them. Real unemployment rates are much higher.
Many of the low-wage service sector jobs that have historically been filled by
younger workers are increasingly being staffed by older workers who have lost
better paying jobs in the deepening U.S. recession.
Young people of color have felt the spike in youth unemployment most acutely.
According to a recent study published by Northeastern University’s Center
for Labor Market Studies, Black and Latin@ youth are suffering real
unemployment rates well over 80 percent. The CLMS research study concluded that
“low income Black and Hispanic teens face the equivalent of a Great
Depression.”
Overall, youth unemployment is the highest it has been in more than six
decades, according to the CLMS. It found that only 37 percent of U.S. youth are
actually employed.
According to the report, the highest youth unemployment rates are in the major
U.S. cities. Washington, D.C., has the highest youth unemployment rate at 86
percent. New York City, Detroit and Chicago all have youth unemployment rates
over 80 percent.
The spike in unemployment could not come at a worse time for working-class
young people in the U.S., as it is occurring at the same time that relatively
low-cost student loans are disappearing. The continuing crisis in the financial
markets has sent interest rates skyrocketing on student loans. An increasing
number of working-class youth, particularly those who go to community colleges,
cannot get access to student loans at all.
Since March, nearly 100 lenders have suspended their participation in federally
backed fixed-rate loan programs, according to the National Association for
Student Financial Aid Administrators. Many more of the fixed-rate loans that
low-income students are counting on to finance this coming term are likely to
become unavailable in the coming months. Working-class students seeking loans
for school are facing what amounts to a form of 21st-century
redlining, that is, an automatic and prejudicial rejection.
On July 28 the Massachusetts Educational Financing Authority—which
secures more than $500 million in student loans for more than 40,000
students—announced that it was shutting down lending operations for the
2008/2009 school year. MEFA cited deteriorating conditions in global capital
markets as the reason for the shutdown. As many of the largest and most
integral financial institutions in the U.S. continue to barrel toward
insolvency, the subsequent credit contraction has spread to every debt market
from mortgage loans to auto loans to student loans.
The utter absurdity of an economic system that makes access to education
dependent on the profit margins of Wall Street is daily becoming more apparent.
The need to intensify the struggle for free and universal education and more
jobs for young people has never been greater. With no jobs and no money for the
coming school year, this summer has been hot and miserable for millions of
young people. It’s time to turn up the heat on the student lenders,
bankers and bosses.
Articles copyright 1995-2012 Workers World.
Verbatim copying and distribution of this entire article is permitted in any medium without royalty provided this notice is preserved.
Workers World, 55 W. 17 St., NY, NY 10011
Email:
[email protected]
Subscribe
[email protected]
Support independent news
DONATE