from Bloomberg:
U.S. Slowdown Frustrates Teens Seeking Summer Jobs (Update1)
By Timothy R. Homan
June 6 (Bloomberg) -- Teenagers are finding it increasingly difficult to get work for the summer, particularly in the retail industry, as the U.S. labor market softens.
The teenage jobless rate soared to 18.7 percent in May from 15.4 percent the month before, the biggest increase since the Labor Department began keeping the statistics in 1948, a government report showed today. That helped drive the total U.S. unemployment rate up by a half percentage point to 5.5 percent.
The tough job market for teens is another sign of the widening effects of the economic downturn that began with a slump in housing and spread to the financial industry. Now, retailers such as bookseller Borders Group Inc., clothing retailer Talbots Inc. and movie-rental chain Blockbuster Inc. are trimming payrolls as consumers rein in spending.
``I've put in a lot of applications -- no calls yet,'' Kip Nichols, 17, of Dallas, said in a telephone interview. He said he's applied for six openings, most of them full-time retail positions at book or clothing stores in local malls, and hopes to continue working part time when he goes back to school in the fall.
Total U.S. payrolls have declined for five straight months as economic growth weakened. Consumer spending growth is slowing after a slide in home values, record energy costs and the credit crisis hit household budgets. The unemployment rate for teenagers has climbed from 12.8 percent in May 2000.
First Affected Teens are among the first to feel the effects of a slowing job market, said Joseph McLaughlin, a research associate at Northeastern University's Center for Labor Market Studies in Boston.
``That's what's going to hurt them this summer,'' McLaughlin said in a Bloomberg Television interview today. ``They're kind of lowest in the hiring queue, so we need strong job growth so employers have to dig down and hire those 16- and 17-year-olds who have limited job experience.''
McLaughlin is co-author of an April study that says the outlook for teen employment this summer is the worst in 60 years. .....(more)
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