Institute for Research on Labor and Employment

Young workers are vital to the future of California, the fifth-largest economy in the world. Workers between the ages of 18 and 29 make up a quarter of all employees in the state. Young fast food and retail workers played a critical role in California’s organizing campaign to increase the minimum wage to $15, which will raise low-wage workers’ lifetime earnings by over 20% and could increase their retirement incomes by roughly half. Young Californians represent an influential force in shaping current public debates around the future of work, student debt, access to safe, quality schools, immigration reform, and affordable housing.

Despite the 2018 Supreme Court decision Janus vs. AFSCME, which attempted to weaken public sector unions’ efforts to organize workers, raise wages, and provide sick pay, a recent Gallup Poll indicated that 66% of people aged 18-34 approve of labor unions, and millennials are responsible for the gains in current union representation. Ultimately, young workers are at the heart of California’s success; they are taxpayers, voters, parents, decision makers, consumers, and contributors to the social and cultural vibrancy and well-being of the state.

Yet, young people continue to face higher unemployment rates compared to older workers, as well as wage stagnation— even with a college education. Moreover, the quality of jobs that young people are able to secure has also declined, even though educational attainment has more than doubled for these workers over the last four decades. Young workers, however, still occupy predominantly low-wage jobs and frontline positions, such as cashiers in retail stores or servers in fast food establishments. As the cost of living, housing, and education increase, and median household incomes decrease, young workers face a crisis: higher education and quality career pathways become increasingly unattainable. According to the Pew Research Center, Americans now owe over $1.5 trillion in student loan debt, and nationally, 1 in 3 young people have student loan debt. Young workers are disproportionately impacted by labor market swings such as higher unemployment during a recession or less access to quality jobs during an economic boom.