National unemployment has remained relatively low over the past year, yet recent data shows teen joblessness is rising. According to the Bureau of Labor Statistics, unemployment among 16 to 19-year-olds reached 15.2 percent in July, up from 11.8 percent in January. This marks the highest rate since the early months of the pandemic.
Economic shifts are part of the story, but state wage requirements also appear to play a role. States with higher minimum wages often show above average teen unemployment rates. For example, California reported a 21.2 percent average teen unemployment rate last year, compared to the national average of 12.7 percent. Washington recorded 14.8 percent and Illinois 14.2 percent, both above the national average and both with higher minimum wages than many states.
Not all states follow the same trend. Kentucky, with a minimum wage of $7.25, posted the nation’s second highest teen unemployment rate at 17.4 percent, but more of its teens are participating in the labor force compared to other states.
The data highlights the complex balance between wage policies, economic conditions, and opportunities for young workers entering the job market.