The Employment of Youths in the United States of America

The employment of youths in the United States of America fluctuates due to the various causes of unemployment and seasonal changes. It also depends on the economic situation of the country. The main cause of the unemployment of youths can be said to be the effects of the forces of demand and supply in the country. The youth who are mostly aged between 16 years and 24 years are students in various institutions hence their supply is really high over their summers (Stein, 2008).

The period is between April and July every year. This is because most students are searching for their summer jobs and at the same time there are graduates who are searching for permanent employment. In the year 2009, the number of youths who were searching for employment increased from 2.6 to 23.7 million. The government and the private sector always create jobs at this time so that they can absorb as many youths as possible.

Their employability is high at this time. The U.S labor department has reported that the rate of employment of the youth has increased tremendously to 19.3 million. In July 2009, the employed youth who are non-institutional was 51.4%, which is a decrease from the year 2008 July which was 56 percent. When compared to the year 1989 July employment ratio which is considered to be the peak of employment, then there is a decrease by approximately 18%.

The unemployed youths in the year 2008 rose by 1.1 million. In the year 2009, the number of unemployed youths was higher by 1 million to 4.4 million compared to the year 2008. This is the highest rate of 18.5% in the year 2009 as compared to all other years since 1948. The fluctuation of the youth employment is seasonal and it occurs over springs and the summer times. The major cause of unemployment in 2008 and 2009 is due to the global economic crisis which began at the end of 2007 and the weak market conditions.

The United States of America is the largest world economy with approximately 14.2 trillion GDP as of the year 2009 which is almost three times the economy of the country ranked the second. The U.S. output both for the private and the government is very high, hence the rate of unemployment is very low. The per capita income is high at $46,442 and it was ranked number ten in the year 2009 in whole world economies.

The output in the United States of America has been increasing all through the years. The US economy enjoys excellent foreign investor confidence since the population’s savings is less. It is estimated that 71 percent of the population’s income is spent on their consumption leaving little or no income as savings.

The effects of employment have effects on the national output. When there is less labor due to unemployment, the output will decrease and vice versa. This is because labor is one of the factors which are considered important for production. Unemployment will result in a lack of income for the unemployed. This means that the purchasing power and the disposable income of the people are reduced. Unless the government takes action, unemployment will result in a negative multiplier effect (Kates, 2010).

This is because most people who are unemployed will not be able to purchase any type of goods and services from the suppliers hence the suppliers and the national economy is greatly affected. Unemployment will also affect the income of the government through taxes on income and products. The society also is affected by the high rate of unemployment since people will mostly be involved in crime so that they will get money to spend on their basic needs such as food, education, healthcare, clothing and shelter among others (Krugman & Wells, 2009).


Kates, S. (2010). Macroeconomic Theory and Its Failings: Alternative Perspectives on the Global Financial Crisis. Edward Elgar Publishing.

Krugman, P., & Wells, R. (2009). Macroeconomics. Worth Publishers.

Stein, A.M. (2008). Employment 2008: Law and Practice, Human Resources. FL Memo Limited.