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The problem

Only 27 percent o teens in Illinois had jobs last year the lowest Illinois teen employment rate in the 42 years thisdata has been collected. Te gures were worst or Arican American teens in Chicago, where only 10 percent hadjobs.

As the graphic shows, the Great Recession clobbered teens with higher unemployment rates, ewer employmentopportunities and ewer hours worked a perect storm.

37.08%

29.33%

16.20%

24.35%

Average employment rate

as % of the population

Average Unemployment rate

8.3 hrs.

6.65 hrs.

Average hours worked per week

Pre-recession years 2002-07

Recession and post-recession years 2008-11

But another obstacle hurting teens is Illinois minimum wage o $8.25 an hour, which is ourth-highest in thenation and a dollar higher than the ederal minimum wage.

With an hourly minimum wage o $8.25, employers will hire whoever can produce the most output or thatamount. When teens are competing with adults or minimum wage jobs, teens will be passed over or the job inavor o workers with more experience.

Teen unemployment in Illinois: the toll of the Great Recession and minimum wageby ed Dabrowski, Vice President o Policy, Lawrence J. McQuillan, PhD, Chie Economist andJohn H. Klingner, Research Assistant

Nov.12, 2012

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Unortunately, lawmakers in Springeld are advancing plans to put thousands more teens out o work. IllinoisSenate President John Cullerton sponsored a bill (Senate Bill 1565) to increase the minimum wage to $10.25 anhour by 2015, a 24 percent increase. Illinois would then have the highest minimum wage in the nation.

An econometric simulation reveals that SB 1565 would result in an Illinois teen employment loss o 10,576.

Tis job-killing bill passed the Senate Executive Committee. Provisions to increase the minimum wage could beadded to any existing bill when the Legislature reconvenes in November.

The solution

Te ederal government and Illinois should abolish the minimum wage.

Why it works

Abolishing the minimum wage would quickly boost teen employment in Illinois, allowing teens to get the workexperience and on-the-job training they need or uture career advancement. Parents should support these goals.

With wage fexibility, any teen who wants to work will be able to nd employment in the long run as labor marketsclear, leaving only normal churn unemployment as people naturally move in and out o jobs. More productiveworkers will command a higher wage as employers compete or their greater skills and talents.

illinoispolicy.org