Two Ways to Support Youth Employment

Youth unemployment is a big challenge in developed countries, including the United States. According to the U.S. Bureau of Labor Statistics, in July 2023, the youth labor force in the country stood at 23.7 million. Here, youth refers to people aged 16 to 24 years. Only 21.6 million of these youth were employed, with a youth unemployment rate of 8.7 percent. This was more than double the adult unemployment rate of 3.5 percent and slightly higher than the July 2022 youth unemployment rate of 8.5 percent.

There are many reasons why youth unemployment is high. Two of these are lack of entrepreneurial support and capital to build businesses.

Inadequate entrepreneurial support limits the ability of youth to start and grow their own businesses. A possible solution for this is to match entrepreneurial college graduates with retired business people, providing a bridge through which the young can learn from the experienced about starting, running, and growing businesses. Pairing the seasoned with the young and energetic will increase the likelihood of youth building successful businesses.

Regarding access to capital, while there are currently many ways that youth can raise venture capital for their businesses, these support structures are inadequate. The government can step in by giving tax credits to youth-led businesses. This way, youth make up for the operating losses they incur when they start their businesses with the credits. This increases the probability of youth-led businesses growing and thriving.

Graham R Taylor

Shop