The Youth Employment Crisis JPMorgan Chase & Co.

Summer Youth Employment

Around the world, youth unemployment rates are at or near historic highs – with a slow predicted recovery – including in the United States, where young people are experiencing Depression-era levels of employment. While the economic recession over the last decade left many groups facing declining employment rates, teenagers and young adults have experienced the steepest drop of any age group.footnote 1


The Youth Employment Crisis. 3.4 Million Jobs Deficit Employment opportunities during the summer months, a time when most young people get their first job, have vanished in many communities. Nearly 40% decline in summer youth employment over the past 12 years. Only 26% of teenagers held any paid jobs in 2011 and 2012. Young people from low-income and minority families have been hit the hardest by this crisis. In 2013, white male teens in high-income families were 5x more likely to be employed than their black male peers living in low-income families. Teens from families that earned less than $20,000 were nearly 20% less likely to be employed than teens with family incomes of $60,000 or more. Data sourced from BUILDING SKILLS THROUGH SUMMER JOBS: Lessons From The Field© 2015 © 2015 JPMorgan Chase & Co.


BUILDING SKILLS THROUGH SUMMER JOBS: Lessons From The Field

 

Recognizing the importance of tackling the youth employment crisis and the value of early work experiences, in 2014 we furthered our commitment to workforce readiness by investing $5 million in summer youth employment initiatives in 14 U.S. cities. This commitment builds on New Skills at Work, our five-year, $250 million global workforce readiness initiative, and is a continuation of philanthropic investments the firm has made over the past several years to create work placement programs, mentorships, and skills development opportunities for low-income youth across global markets.

JPMorgan Chase and Summer Youth Employment. $5 Million commitment by JPMorgan Chase over two years to help underserved youth across the United States obtain the skills necessary to build lasting careers. 20,000 13- to 24-year olds offered learning opportunities in the fields of science, technology, engineering, arts and math. Snapshot of Summer Job Participants: Low income, with annual family income from $24,000–$44,000 (for a family of four); Ages 13–24 years, with  54% ages 16–18; 75% Hispanic/Latino or Black/African-American; The results: Almost 50,000 youth hired through the 16 employment programs supported, in part, by JPMorgan Chase in 2014. Another 54,000 youth benefited from learning opportunities that enriched their summer experience
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Andrew Sum, Ishwar Khatiwada, Walter McHugh, Evidence on the Ins and Outs of Summer Teen Employment: Teens Continue to Be Left Out of the Paid Labor Market in the Summer of 2013, Center for Labor Market Studies, Northeastern University (August 2013)