The unemployment rate for Arkansas teens remains nearly triple the state's overall figure, but the number has fallen in the past year.
Discover Arkansas, the labor statistics arm of the Department of Workforce Services, reported the unemployment rate for 16-19-year-old Arkansans was 16.8 percent in May, the lowest reported rate since September 2012. The unemployment rate for teens averaged 31.5 percent in summer 2013, the highest rate since Discover Arkansas began keeping data in 2006.
Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock, said that while the high unemployment rate among teenagers remains a national problem, the recent dip in the rate may be a reflection of Arkansas' changing labor market.
"We have seen a decline in labor force participation for young people," Pakko said. "There just aren't as many teenagers looking for a job as there used to be."
In 2011, 41.4 percent of Arkansas teens were in the labor market. By 2013, the figure slipped to 32.8 percent. Pakko said the decline in teenage participation can be both good and bad. Fewer teens seeking work suggest that more are staying in school, but it can also indicate that some teens looking for work became discouraged and stopped searching.
"When the unemployment rate goes down, it never is unambiguously good news," Pakko said. "It seems that some of those who are unemployed are not even looking anymore."
The Central Arkansas Planning and Development District aims to help teens work while staying in school. The district employs 60 teens and young adults year-round as part of its Youth Workforce Investment Act program and supplements the employment with academic and cultural enrichment activities. It receives federal money to help place Pulaski County youths and young adults ages 14-21 in jobs in the community. Program participants choose the corporation or organization where they want to work, but the district pays their wages. John Brunson, area workforce director at the district's North Little Rock office, said working helps the youths learn how to be responsible and reliable employees from a young age.
"They learn soft skills like being able to report to work on time, follow instructions and actually do a job that a person has given them to do without close supervision," Brunson said.
Youths in the program work 10-12 hours a week during the school year and have the option of working 25-40 hours per week in the summer. Many choose recreation jobs at organizations such as the Boys and Girls Club. Others take jobs at corporations or nonprofit organizations. Brunson said part of the program's mission is to help teens become successful members of the workforce. He said he's seen teens today come in with fewer job-readiness skills than they had a decade ago.
"Most don't have a resume," Brunson said of the job-seeking teens who start the program. "Most of them are going in for a interview and have to be instructed on dress code."
There's a similar program for youths who live within Little Rock city limits. Little Rock Workforce Investment Board Executive Director W.J. Monagle said the board's Summer Youth Employment Program aims to place disadvantaged teens away from typical summer jobs in retail or fast food.
"We don't want to give our participants a work experience that they could go out and get themselves," Monagle said.
The 53 teens who began the summer 2014 program do clerical work and computer repair. Many work in positions at UALR or the University of Arkansas for Medical Sciences. Monagle said the jobs give teens the chance to develop industry-specific skills. He said many of the high school students also benefit from exposure to higher education.
Another 612 Little Rock teens also landed summer jobs through a similar city-run program open to any teen who resides within city limits. The teens are assigned to jobs for the state, the city and private businesses and receive financial literacy training as part of a $1.06 million program funded by grants and city taxes. Programs coordinator Marq Golden said the city program began about a decade ago to create city programming for older youth. The city funded the program after research suggested that teens who hold part-time jobs stay more attached to the labor market.
"Kids need some job development skills," Golden said "It even helps with our economic development around the city."
Last year, 580 teens were part of the program. In 2012, there were about 500. So far, program funding has covered wages and insurance for all interested applicants.
The Pulaski County Youth Workforce Investment Act program tracks youth a year after they graduate high school. Brunson said about half head to the corporate workforce. Others go to college or join the military.
"There are different types of goals that they've set for themselves," Brunson said. "Most of them are pretty successful."
Business on 07/19/2014