The 20 Republican-led states that reduced unemployment benefits in June did not see an immediate spike in overall hiring, but early evidence suggests something did change: The teen hiring boom slowed in those states, and workers 25 and older returned to work more quickly.
A new analysis by payroll processor Gusto, conducted for The Washington Post, found that small restaurants and hospitality businesses in states such as Missouri, which ended the extra unemployment benefits early, saw a jump in hiring of workers over age 25. The uptick in hiring of older workers was roughly offset by the slower hiring of teens in these states. In contrast, restaurants and hospitality businesses in states such as Kansas, where the full benefits remain, have been hiring a lot more teenagers who are less experienced and less likely to qualify for unemployment aid.
The findings suggest hiring is likely to remain difficult for some time, especially in the lower-paying hospitality sector. The analysis also adds perspective to the teen hiring boom, revealing that more generous unemployment payments played a role in keeping more experienced workers on the sidelines, forcing employers to turn to younger workers. It indicates teen hiring could slow further in September, as unemployment benefits are reduced across the country and young people return to school.
Does everything really cost more? Find out with our inflation quiz.
There’s a growing trend in helpwanted ads of lowering the age and experience requirements, especially in the hospitality sector, according to QuickHire, a recruiting firm in Wichita.
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Katrina Weiss has seen these trends play out at her restaurant, named 715 after its address in Lawrence, Kansas. Before the pandemic, her youngest employee was 18 years old. Now, her youngest employee is 15, and she has many teens working as hostesses, assistant servers and table bussers. Weiss said she has been inundated with applications from teens this summer, but few from workers in their 20s or 30s.
Why some Americans are still hesitant to get back to work
With stimulus payments and additional unemployment, some workers are reassessing when and how they’ll get back to work as the economy emerges from crisis. (Mahlia Posey/The Washington Post)
“We’ve definitely lowered that minimum age,” said Weiss, a part owner of 715 who has worked there since it opened in 2009.
The federal government is providing unemployed workers an extra $300 a week through Sept. 6, roughly doubling how much the typical unemployed American would otherwise receive in aid. Yet, federal benefits have ignited political debates, because hiring in recent months has been weaker than expected. Republicans say the enhanced payments are playing a major role in keeping workers at home, while Democrats argue the money is a needed lifeline to help people still unable to return to work or those hoping to find a better job.
Welcome to the year of wage hikes. Workers are returning — to higher-paying firms.
So far, early data suggests that cutting the benefits given to Americans who lost their jobs during the covid-19 pandemic has not led to a big pickup in hiring. The 20 states that reduced benefits in June had the same pace of hiring as the mostly Democrat-led states that kept the extra $300-a-week unemployment payments in place, according to state-level data from the Labor Department. Survey data from the Census Bureau and Gusto’s small-business payroll data show similar results.
Many economists and business owners say other issues such as health concerns, child-care problems and workers reassessing their career choices appear to be larger factors keeping them home.
“If what we want is a speedy economic recovery, ending unemployment insurance is not the silver bullet,” Gusto economist Luke Pardue said. But, he added, “unemployment insurance was at least partially a cause of the boom in teen employment.”
The economy isn’t going back to February 2020. Fundamental shifts have occurred.
There’s a growing trend in help-wanted ads of lowering the age and experience requirements, especially in the hospitality sector, according to QuickHire, a recruiting firm in Wichita.
“Almost all of the restaurants that we work with are willing to hire kids as young as 16 now,” said Deborah Gladney, co-founder of QuickHire. “We saw a big shift in May when we started seeing a lot of restaurants drop their age requirements and offer bonuses.”
The teen unemployment rate is at its lowest level since the 1950s, according to the Bureau of Labor Statistics. The more generous unemployment benefits allowed older workers to stay home, care for children or relatives, and avoid the deadly coronavirus. Teenagers often don’t qualify for unemployment assistance, because many weren’t working pre-pandemic, and they are often still supported by parents or guardians.
At 715, Weiss and her business partners raised wages for all employees and began offering signing and referral bonuses. Even with those changes, the bulk of their applicants were teens. Weiss is hopeful that might change in September as more college students return to the University of Kansas and the unemployment benefits are reduced, but she is not banking on it.
A new analysis by payroll processor Gusto, conducted for The Washington Post, found that small restaurants and hospitality businesses in states such as Missouri, which ended the extra unemployment benefits early, saw a jump in hiring of workers over age 25. The uptick in hiring of older workers was roughly offset by the slower hiring of teens in these states. In contrast, restaurants and hospitality businesses in states such as Kansas, where the full benefits remain, have been hiring a lot more teenagers who are less experienced and less likely to qualify for unemployment aid.
The findings suggest hiring is likely to remain difficult for some time, especially in the lower-paying hospitality sector. The analysis also adds perspective to the teen hiring boom, revealing that more generous unemployment payments played a role in keeping more experienced workers on the sidelines, forcing employers to turn to younger workers. It indicates teen hiring could slow further in September, as unemployment benefits are reduced across the country and young people return to school.
Does everything really cost more? Find out with our inflation quiz.
There’s a growing trend in helpwanted ads of lowering the age and experience requirements, especially in the hospitality sector, according to QuickHire, a recruiting firm in Wichita.
ADVERTISING
Katrina Weiss has seen these trends play out at her restaurant, named 715 after its address in Lawrence, Kansas. Before the pandemic, her youngest employee was 18 years old. Now, her youngest employee is 15, and she has many teens working as hostesses, assistant servers and table bussers. Weiss said she has been inundated with applications from teens this summer, but few from workers in their 20s or 30s.
Why some Americans are still hesitant to get back to work
With stimulus payments and additional unemployment, some workers are reassessing when and how they’ll get back to work as the economy emerges from crisis. (Mahlia Posey/The Washington Post)
“We’ve definitely lowered that minimum age,” said Weiss, a part owner of 715 who has worked there since it opened in 2009.
The federal government is providing unemployed workers an extra $300 a week through Sept. 6, roughly doubling how much the typical unemployed American would otherwise receive in aid. Yet, federal benefits have ignited political debates, because hiring in recent months has been weaker than expected. Republicans say the enhanced payments are playing a major role in keeping workers at home, while Democrats argue the money is a needed lifeline to help people still unable to return to work or those hoping to find a better job.
Welcome to the year of wage hikes. Workers are returning — to higher-paying firms.
So far, early data suggests that cutting the benefits given to Americans who lost their jobs during the covid-19 pandemic has not led to a big pickup in hiring. The 20 states that reduced benefits in June had the same pace of hiring as the mostly Democrat-led states that kept the extra $300-a-week unemployment payments in place, according to state-level data from the Labor Department. Survey data from the Census Bureau and Gusto’s small-business payroll data show similar results.
Many economists and business owners say other issues such as health concerns, child-care problems and workers reassessing their career choices appear to be larger factors keeping them home.
“If what we want is a speedy economic recovery, ending unemployment insurance is not the silver bullet,” Gusto economist Luke Pardue said. But, he added, “unemployment insurance was at least partially a cause of the boom in teen employment.”
The economy isn’t going back to February 2020. Fundamental shifts have occurred.
There’s a growing trend in help-wanted ads of lowering the age and experience requirements, especially in the hospitality sector, according to QuickHire, a recruiting firm in Wichita.
“Almost all of the restaurants that we work with are willing to hire kids as young as 16 now,” said Deborah Gladney, co-founder of QuickHire. “We saw a big shift in May when we started seeing a lot of restaurants drop their age requirements and offer bonuses.”
The teen unemployment rate is at its lowest level since the 1950s, according to the Bureau of Labor Statistics. The more generous unemployment benefits allowed older workers to stay home, care for children or relatives, and avoid the deadly coronavirus. Teenagers often don’t qualify for unemployment assistance, because many weren’t working pre-pandemic, and they are often still supported by parents or guardians.
At 715, Weiss and her business partners raised wages for all employees and began offering signing and referral bonuses. Even with those changes, the bulk of their applicants were teens. Weiss is hopeful that might change in September as more college students return to the University of Kansas and the unemployment benefits are reduced, but she is not banking on it.
