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Study shows high rate of young people unemployed, not in school

Alabama reportedly has the highest number of young people who are both unemployed and not enrolled in school in the United States.

The new ranking comes from a survey produced by the Alabama Workforce Council and the Governor’s Office of Education and Workforce Transformation. The survey itself was conducted by Cygnal. The Federal Reserve Bank of Dallas compared that data to figures nationwide.

Hundreds of young people from across the nation ages 16-24, both employed and unemployed, took part in the survey which showed some of the major reasons for the bottom ranking.

According to the data, 80% of young people in Alabama are content with their jobs. Satisfaction with those jobs generally increased as income rises.

However, the primary cause of job dissatisfaction in the age group, the study found, was pay at 19%.

RELATED: Labor force participation steady; unemployment a record low

13% of those surveyed reported not having reliable transportation to commute to work, while nearly 60% of workers have missed work due to car breakdowns. A significant number of workers don’t have access to public transportation; half of them spend over 30 minutes on their commute, and transportation issues have led a third of workers to quit or lose their jobs.

About two-thirds of unemployed young people are actively searching for work, with urban residents more likely to seek employment compared to their rural counterparts. Additionally, 37% of workers have postponed taking new jobs, changing positions within the same company, or enrolling in school or training due to concerns about losing benefits from the Supplemental Nutrition Assistance Program (SNAP) and 52% reported apprehensions about losing Medicaid benefits.

RELATED: Study: Alabama No. 7 best job market

Reasons for unemployment include personal and family responsibilities (24%), with over a third of unemployed young people caring for family members. About 24% cited their own illness or disability as the primary cause of unemployment, especially among those under 21.

Lack of transportation is also a significant obstacle, affecting 19% of unemployed young people. 39% of unemployed respondents lack a driver’s license, and 52% have unreliable transportation or depend on other factors for their commute.

Other reasons that were factored included substance abuse (7%) and felony convictions (1%). However, these two categories had minimal impact on job searches among those surveyed.

Austen Shipley is a staff writer for Yellowhammer News.

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