What Happens to Young Workers?

Tom Barkin

Speech from Federal Reserve Bank of Richmond

Abstract: I’m hesitant to make a strong prediction about which jobs will disappear or which will grow once we’ve weathered the pandemic. After all, in the wake of 9/11, people thought we’d never travel again, and then we did. But it seems quite possible that — even with a vaccine or treatment — we will be in a world where highly exposed personal service sectors, such as restaurants, retail, and entertainment, continue to operate at reduced capacity, which would mean fewer jobs in those sectors. That leads me to ask, who works in these jobs, and what happens to them if some percentage of them don’t return? Workers in these highly exposed jobs are generally hourly employees, working part time, and they tend to be younger than the workforce as a whole — just over 1 in 4 are between the ages of 16 and 24, twice their representation in the workforce overall.1 These jobs offer low wages and few, if any, benefits. Still, some younger workers take these jobs (43 percent of workers between the ages of 16-24 work in retail trade and leisure and hospitality alone) because they’re a great way to get a start in the workforce and gain experience and soft skills. (I got my start in my uncle’s bagel shop.) Others appreciate the flexibility that allows them to work while they’re in school. And for workers who lack the resources or academic preparation for postsecondary education, these jobs might be the only path that’s open to them. Another attraction is that you can move nearly anywhere and count on finding a job in a restaurant or retail.

Keywords: employment and labor markets; workforce development (search for similar items in EconPapers)
Date: 2020-08-24
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