“Young people are critical actors in California’s vibrant economy and labor force,” says the study, released Nov. 9. “Yet, young workers in California find themselves navigating a tumultuous landscape of societal shifts, economic challenges, and the lingering aftermath of a global pandemic.”
About 64% of California’s young workers earned low wages — defined as about $18 an hour, two-thirds of the median wage — and 60% reported difficulty affording their expenses, researchers wrote.
The assumption that young people work at service-oriented, low-wage jobs temporarily before they’re propelled to full-time careers isn’t necessarily true, said UCLA researcher Vivek Ramakrishnan. Many young people stay in low-wage jobs for years.
“When we’re looking at the data, we’re seeing young people are really struggling in these kinds of roles,” he said, adding later, “There’s a sense you can get stuck working in the service industry.”
The report analyzed data from multiple sources, including the U.S. Census Bureau’s American Community Survey, the COVID-19 Household Pulse Survey — which documented the impact of the pandemic — and the federal Bureau of Labor Statistics.
Young workers reflect California’s growing diversity. About three in four are people of color and more than half are Latino. About 15% of high school-aged young people worked full time and half of young people ages 19 to 24 worked full time.
Young workers’ trap
In the service industry, 40% of young workers are employed in bars, restaurants and retail.
These young people run the risk of being caught in a “circular labor trap,” the study says, because these low-wage service jobs are structured with little room for growth or skill development.
“When you have these skill sets that are hyper-specific toward these industries, and not much room for growth, it’s hard to compete against students who may take an unpaid internship in a very content-specific area of expertise and gain connections in the career they want to go into,” Ramakrishnan said.
Because so many service industry jobs were considered frontline jobs, the pandemic was particularly disruptive for young people, who often had to choose between their health and their income. And when grocers and restaurant businesses closed during the pandemic, younger workers, especially young people of color, experienced higher levels of unemployment or underemployment compared to older workers in other industries.