Young adults who are engaged in either work or school strengthen our communities and provide significant economic benefits. When policymakers invest in supporting opportunity youth, defined as those between 16 and 24 who are neither in school nor working, the benefits are widespread and long term.
Expanding employment opportunities for opportunity youth—including through proven year-round and summer job training programs—can help improve work readiness, expand professional networks, boost earnings, and reduce interaction with the criminal justice system. Certain programs have also been shown to improve public safety and reduce gun violence. There are several avenues for Congress to invest in these proven programs, including through a reauthorization of the Workforce Innovation and Opportunity Act (WIOA) and other federal initiatives.
Supporting young people who are neither in school nor working pays dividends to the U.S. economy and society.
In 2021, nearly 4.7 million young people ages 16 to 24 were opportunity youth, representing about 12% of people in that age group. Black, non-Hispanic; Native American; and Hispanic youth were overrepresented among opportunity youth compared to those who are White, non-Hispanic or Asian American, Native Hawaiian, and Pacific Islanders. Many opportunity youth have disabilities, are uninsured, currently homeless, living in poverty, or are involved with the juvenile justice or child welfare systems.
While many young people pursue formal education to advance their careers, even those who are not in school can build up early work experience that can lay the groundwork for future economic success. However, opportunity youth are not benefiting from education or work experience, resulting in numerous downstream consequences. A 2018 study estimates that after roughly 14 years, opportunity youth have been paid $31,000 less than those who were not opportunity youth. Other research finds young people’s unemployment can reduce social mobility and homeownership, spur future bouts of unemployment, and result in poor physical health.
Not only are these consequences detrimental to individuals, but they also create broader costs to society and consequences for the overall economy. People who are not working for pay do not contribute any income taxes, spend less in their local economies, and may need the support of government programs for necessities like health care. One study from 2011 found that after accounting for each of these costs and losses, each opportunity youth could cost society $13,900 in that year. Given the age of this report, this estimate is likely an understatement of the total societal cost of not investing in opportunity youth.
Failing to invest in opportunity youth can also be connected to higher crime rates, as one study found that 63% of crimes committed by young people were committed by those who were not in school or working. Entering the judicial system can be costly for young people, impacting their future job choices, employment opportunities, wages, and recidivism—especially for Black and Latino Americans. Youth incarceration also costs state economies $214,620 each year per youth in just the cost of confinement as of 2020.
Connecting young people with employment can boost earnings and augment professional development.
Youth employment programs provide young people with job training and education that can streamline the skill development necessary for different career fields. For example, Year Up—a one-year training program with an intensive focus on professional development and building skills—saw participants’ average quarterly earnings increase by 53% in the post-program year and 40% in the following year compared to non-participants’ earnings. This added income can relieve tight family budgets, especially for those in low-income households. One recent study found that half of the participants in a different summer employment program used a portion of their earnings to pay for one or more household bills. In the same study, one in five participants saved a portion of their earnings for college tuition.
Youth employment programs can also create connections between young people from different socio-economic classes, giving lower-income young people exposure to new professional avenues and opportunities. Forging these sorts of connections can provide long-term benefits, with some research suggesting that economic connectedness—described as the degree of interaction between people from different socio-economic classes—is an important predictor of upward economic mobility.
These programs can also improve some of the simple but vital job search skills that are required to enter and stay in the labor force. One study found that participants in a work readiness program were more likely to complete a resume and cover letter than a comparison group of non-participants. This finding is consistent with observed behavioral shifts in the youth, who saw improvements in their sense of belonging, ability to contribute to their communities, and conflict resolution skills. Oswego, a former participant in the Marion Barry Summer Youth Employment Program in Washington, D.C. noted, “I [learned] how to not be so awkward. I used to be pretty awkward with adults… I like that I got to grow in that sense.”
Youth employment programs can reduce interaction with the criminal justice system.
Alongside these direct economic benefits, youth employment programs can also play an important role in reducing criminal justice involvement among young adults. The Rapid Employment and Development Initiative (READI) program in Chicago provides both job training and therapy to the most at-risk young men in the community, with the goal of addressing the root causes of gun violence. Participants referred to the program by outreach workers were 43% less likely to be the victim of a violent crime and 79% less likely to be arrested for a shooting or a homicide compared to a control group. Researchers estimate that the benefits of reduced criminal activity are four to 18 times the cost of the READI program, equating to between $182,000 and $916,000 saved per participant over the long run.
In a separate study analyzing the NYC Summer Youth Employment Program—the largest summer youth employment program in the country—researchers found that participation reduced the chances of both arrests and convictions. During the program summer, the study revealed a 17% decrease in overall arrest likelihood and a 23% decrease in felony arrest likelihood. Moreover, there was a 31% reduction in criminal conviction probability and a 38% reduction in felony conviction probability.
