With federal stimulus funding gone to support summer jobs for youth, the private sector appears to be stepping up on its own ”“ with a nudge or two from government agencies ranging from the U.S. Department of Labor to the city of Norwalk.
Under the American Recovery and Reinvestment Act (ARRA) of 2009, funding was included for nearly 4,000 summer jobs in Connecticut, including some 700 slots for Fairfield County employers.
Nearly 100 employers took advantage of the program, roughly split between businesses, nonprofits and public agencies. At least a few corporate participants boast deep pockets, including Bridgeport-based People”™s United Financial Inc. which took on three participants in the ARRA program to work as administrative assistants in its mortgage department ”“ somewhat of an irony given the recession”™s roots in the national collapse of the mortgage-backed securities market.
The ARRA funding has now been spent, however, spurring DOL and others to turn to the bully pulpit to get employers to step up. As part of its Summer Jobs USA initiative, the U.S. Department of Labor is now asking businesses, government agencies and nonprofits to help it meet a goal of 100,000 summer jobs nationally for low-income youth between the ages of 16 and 24.
Unemployment for that age group peaked above 19 percent last July, the highest level since World War II.
On a DOL conference call earlier this month, Norwalk Mayor Richard Moccia noted that his city received a grant last year recognizing its effective summer employment programs for youth.
Still, Moccia said as of early May he has been unable to furnish a sufficient number of summer jobs for young people seeking it.
“We”™ve had over 500 applicants and we look like ”¦ we are only going to be able to provide 175 jobs,” Moccia said.
Just a dozen local companies posted internship openings on the Business Council of Fairfield County”™s initial list of opportunities, which it distributes to area schools. The organization is still soliciting area companies ”“ the University of Bridgeport and Stephen”™s Village in Stamford are both offering short-term housing for out-of-town students.
Business Council spokeswoman Lisa Mercurio said the small number of internship opportunities is more a reflection that the organization typically accumulates listings in May, long after most companies have filled their positions for the summer. She added, however, that while the internship “market” is rebounding, it is still slow by historical standards.
“The last few years there was nothing,” Mercurio said. “In fact, last year I didn”™t even survey.”
Since 2006, teens”™ ability to obtain summer employment has deteriorated rapidly, especially younger, low-income and minority teens, according to a study published last summer by researchers at Northeastern University”™s Center for Labor Market Studies.
It is not just a question of idle youth for that particular summer, the Northeastern University researchers added ”“ the less work a teen puts in during a summer, the lesser the odds of getting a good job the following summer, and they say that can lock that individual onto a path that can lead to negative impacts on employment and wages right into their mid-20s.
In the DOL conference call, Boston Mayor Tom Menino highlighted the leadership of Hub law firms in carving out summer job opportunities for youth.
“These kids would never get into a law firm,” Menino said. “They”™re rubbing elbows with some of the brightest minds we have ”¦ We have to wake up the business community. This is a wise investment for them.”
