May Unemployment Rate due to Teens

Again the press has read unemployment numbers incorrectly citing the biggest gain since 1986 even though it was not because of job losses but a quirky calendar and unemployed teens swelling the workforce.

Lehman Brothers Holdings Inc. economists estimated the unemployment rate may drop back by 0.1 or 0.2 percentage point in June because of the seasonal-adjustment effect. David Resler, chief economist at Nomura Securities International in New York, said the May rate was as much as 0.3 percentage point higher because of the school-year impact.

It's hard for students to find summer work because ``no one is looking for someone to stay until mid-August,'' Jackie Brooks, 19, of Mishawaka, Indiana, said in a phone interview. She recently finished her first year at Indiana University in Bloomington and was looking for work at a bookstore or a café. ``If I tell them I have to leave in mid-August, they say they can't take me.''

Also you might blame high gas prices on why some teens aren't looking for work. I mean they can't afford to drive as much as they could last year so they just aren't looking for work in such large numbers as they did before. Why work for a company that pays you a wage that barely pays for the trip to your workplace? I mean gas costs $4.00 a gallon and minimum wage is only $7.00 so if a teen so they are barely breaking even if they have to drive any distance to their workplace.

Also if this Jackie Brooks is indicative of the attitude of many teens then the people are looking to work in industries that just aren't hiring. I mean both bookstores and cafes probably don't hire workers for 3 months since Borders is laying off workers and many casual dining restaurants are cutting back on staff due to high food costs and slowing disposable incomes.