Minimum Wage and Teen Unemployment

Beginning a research paper isn't easy. Paper Masters suggests you start by noting the outlook for employment among teens is not always positive or consistent.

One of the milestones in a teenager's life is finding his or her first job. Unfortunately, the outlook for employment among teens is not always positive or consistent. In fact, teen unemployment rates have rose throughout 2010, despite the rise in minimum wage rates in many states. Minimum wage rates are Some experts suggest that the cause of teen unemployment across the nation is the minimum wage, especially in states where the minimum wage rate has increased. How minimum wage rates are decided is based on the Fair Labor Standards Act. The United States Department of Labor identifies the current minimum wage rate at $7.25 however individual states can establish higher rates.

Although it would be expected that increases in the minimum wage would be a positive element when it comes to reducing teen unemployment rates, in most cases, the opposite is true. In states like Arizona, where the minimum wage rate has increased for five years in a row, teen unemployment rates are at an all time high. The problem with increases in the minimum wage rates is that it actually becomes more costly for employees to hire teens for entry level jobs in the following ways:

1. Employing teens in entry level jobs is most common because teens typically join the labor force with little or no job experience.
2. When wage rates go up, the cost of hiring as well as training teens goes up.
3. In service jobs where inexperienced teens are most likely to find work, wage rate increases and consumer demand for low prices mean reducing or cutting jobs and therefore fewer jobs for teens in general.