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ILLINOIS
HAS WORST YOUTH EMPLOYMENT IN MIDWEST, BIGGEST DROP AMID COVID-19
PANDEMIC
Illinois Policy Institute/
Orphe Divounguy
With
small businesses and seasonal attractions closed, most of Illinois’
youth find themselves spending a summer without a job. COVID-19 isn’t
the only reason, however. |
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 Fewer Illinois teens found jobs last spring than any of their
Midwestern peers, but this April and May was worse with over 40% fewer of them
working mainly because of COVID-19 restrictions.
Only 15.9% of Illinoisans ages 16 to 19 were working in April and May – just 1
in 7 young people. This means Illinois has the lowest youth employment rate in
the Midwest and 10th lowest in the nation.
That 40.4% drop in teen employment between 2019 and 2020 was the highest in the
Midwest and 11th highest in the nation.
According to research by the Illinois Policy Institute, the
drop in Illinois’ youth employment rate was almost entirely a result of
COVID-19. Nearly 1 in 3 Illinoisans age 16-19 would have a job if not for the
pandemic and associated lockdown measures. While still behind the rest of the
region, that’s more than double the current employment rate.
When the payroll had to be cut as a result of COVID-19 restrictions, Randy Miles
said his teen workers were out of work at Village Inn Pizzeria in Skokie,
Illinois.
“I have a pizza place so I have kids who work for me who live with their
parents,” Miles said. “So I tried to retain all the employees who had kids,
single moms and singles that needed to pay rent.”
Illinois policies that most often hurt adults should also be blamed for poor
youth employment in Illinois. Specifically, a rising minimum wage that has
jumped by $1.75 in the past six months makes it harder for high school and
college students to find work.
Teenagers are heavily relied upon to work minimum wage jobs. As the wage
increases to $15 during the next five years, businesses will be forced to cut
these positions, leaving ever fewer opportunities for Illinois’ youth to work.
On July 1, Illinois’ minimum wage became the highest among neighboring states at
$10 an hour. States with lower minimum wages can more easily afford to keep
their teens working, regardless of pandemic restrictions.
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Future policies could also make it more difficult
for businesses to hire young workers. If voters approve a
progressive income tax amendment Nov. 3, tax rates will increase by
up to 47% on more than 100,000 small businesses.
“Operating this business is a challenge, with the added burden of
minimum wage hikes, all the additional taxes that have been
implemented, and the concern of the possibility of a progressive
income tax coming our way,” said Melanie McCullough, owner of
Bradford Snack Shack.
“Do I want to keep on climbing all these mountains? Not really. But
will I? Yes. Because we provide a service to our community and
because we provide jobs for our employees.”
COVID-19 restrictions continued hurting all Illinois workers, with
an additional 38,897 initial unemployment claims filed for the week
ending July 4. The brings the total in Illinois to 1.42 million
since the pandemic started hitting the economy.
Creating job opportunities raises up all Illinoisans, but can be
especially important for teens.
Extended bouts of youth unemployment lower future earnings. Just six
months of teen unemployment can cost that worker about $22,000
during the next 10 years. Jobless teens are also more likely to
experience unemployment later in life, suffer higher crime and
incarceration rates and see negative consequences for mental and
physical health. Teens without jobs lose an opportunity to put
experience on a resume, learn valuable skills that can be applied
later and earn money that can be saved for their educations.
Teens may not be as mobile as the prime working-age adults driving
the Illinois exodus, but the same high-tax, anti-business climate
that is driving out those older workers is costing teens jobs and
reasons to stay when they begin careers. Pushing a job-killing
progressive income tax atop rapid minimum wage hikes will further
alienate those who should become the future workforce of Illinois.
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