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As we have discussed in the past, one of the most effective tools to combat income inequality is early employment opportunities for youths. The early development of workplace skills has been consistently shown in the literature to lead to higher lifetime wages and earnings.
California is closing this window of opportunity. As shown in the chart below, youth employment (age 14-18) has generally been in decline since the first part of the century, but primarily due to economic cycles. Youths experienced more significant cuts during the Great Recession, and after a gradual recovery trend again saw a steep drop during the pandemic. They then along with other job seekers experienced a surge during the labor shortage period immediately following the state’s reopening. Following enactment of AB 1228 increasing the fast food minimum wage to $20 an hour, jobs for this age group again have gone into a steep decline. Compared to the peak in 2023, jobs for this age group are down by just over one-fifth.
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