Youth Minimum Wage Could Boost Youth Employment
As published in the Las Cruces Sun-News
New Mexico’s minimum wage was one of the most hotly debated issues during the legislative session. Ultimately, a compromise was reached that will bring gradual increases from $9 in 2020 to $12 by 2023.
Something else that survived the debate was the establishment of a youth minimum wage at $8.50/hour. Studies have long linked a rising minimum wage to the unintended consequence of reduced youth employment, so this provision may help us increase much needed opportunities for young people.
Across the nation, youth unemployment is higher that unemployment as a whole. While the US unemployment rate fell to 3.8% in February, youth unemployment still stands at 8.9%. In New Mexico, the unemployment rate dropped to 5.1% in March, but 13% of youth are unemployed.
According to Opportunity Nation, New Mexico ranks 51stin the nation for youth employment. They evaluate aspects of economy, education, community, and health in establishing this score. As a state, 17.4% of our youth 16-24 are not in school nor working.
The long-term impacts of youth not in the workforce is significant. The Urban Alliancereported that each disengaged youth (not in school nor working) “costs an estimated $704,020 over his or her lifetime in lost earnings, lower economic growth, lower tax revenues, and higher government spending.”
However, this new youth minimum wage gives employers and youth a new incentive to connect to one another. Employers who may feel the strain of adding new workers at a higher minimum wage now have even more reason to think about how young workers can make meaningful contributions to their bottom line.
Youth employment benefits employers by providing a pipeline of young talent that can grow into future long-term employees. Businesses of any size can benefit from these “digital natives” who bring knowledge of new tools and technologies that can help employers find new and better ways of accomplishing objectives. There is also the personal satisfaction of investing in a young person’s development through mentoring – helping them find their way to a brighter future than they may have imagined for themselves.
The value of work is immeasurable for the youth themselves. Through its philanthropic arm, JPMorgan Chase & Company made a $5 million investment in summer youth employment as part of their New Skills at Work initiative and then reportedon the powerful positive outcomes for youth and the structures that could support robust youth employment opportunities. That report and another called Expanding Economic Opportunity for Youth Through Summer Jobsshared a host of research findings on the long-term benefits of employment in a young person’s life:
- Every year of work a young person has increases their incomes 14% to 16% in their 20’s
- Youth employment is tied to increased high school graduation rates
- Teaches employability skills (a.k.a. soft skills)
- Reduces youth involvement in the criminal justice system
- 86% of teens who get summer jobs are more likely to be employed the next year
Like many of my generation, early work experiences shaped not just my skills, but the direction of my life. I learned “how” to work bussing tables in my dad’s restaurant at 12, grew in responsibility and customer service as a cashier at Montgomery Wards at 16 (yes, I’m dating myself), then discovered what I loved to do in Exxon’s Communications Department at 18. At 19, a public relations internship with Blue Bell Creameries during college was the start of a 13-year career there, ultimately becoming the Public Relations Director. Those experiences set the course for every good thing that has come since.
Our youth have far more to offer than we truly understand. I hope employers across our community will take advantage of this new opportunity to create a dynamic set of “learn and earn” opportunities that will impact the future of our youth well into the future.
