Why teens aren't finding jobs.

What do Warren Buffett, Walt Disney and Ross Perot all have in common? Besides being iconic American businessmen, all three have "newspaper carrier" on their boyhood résumés. But don't bother looking for leaders of tomorrow's corporate America to be walking down your block at dawn: Your newspaper carrier today is most likely an adult in a car.

As recently as 1990, nearly 70% of newspaper carriers in the U.S. were teens. But that number dropped to 18% in 2004, and more declines are likely, according to Robert Rubrecht, director of circulation and marketing at the Newspaper Association of America."It's an evolutionary process," he says.

Although reasons for teens being edged out of this formerly youth-dominated profession are specific to the newspaper industry -- papers are delivered earlier now, and usually require driving -- the end of the boyhood (or girlhood) paper route reflects a dramatic but little-noticed trend: Teen unemployment has hit historic highs in the last three years. Experts in the field say employers who want to ensure a quality workforce down the line should sit up and take notice.

"It's a baffling problem. The economy is humming along, and employers are almost desperate for people they can hire and train. Contrast that with the lowest teen market penetration in 50 years. Somewhere the connection point is not being made," says Ken Smith, president and CEO of Jobs for America's Graduates, an Alexandria, Va.-based non-profit thathelps more than 40,000 youth each year transition from school to work.

According to data gathered for the U.S. Bureau of Labor Statistics, 37% of teens nationwide worked in the summer of 2006 -- nearly 11% fewer than were working in 1989, the peak of a nation-wide economic boom.

Are teens working less because they are too busy with their MySpace pages, disdainful of teen job opportunities or just plain lazy? Adults are quick with anecdotal evidence to support such theories, but according to Andrew Sum, director of the Center for Labor Market Studies at Northeastern University, there is no data to back them up. "When you ask teens if they want to work, a large number of kids say they simply can't find a job," says Sum, who is also a professor of labor economics. For the summer of 2006, according to the labor bureau statistics, teens had an unemployment rate of 16.5% -- four times higher than that of adults during the same period. "If adult employment fell by the same rate teen employment has in the last 10 years, that would be greatest job loss in American history since the Depression."

Like adults, teens were hurt by the mini-recession of 2001, but while the adult economy has regained its footing, teen employment has continued to fall, says Sum. "Employers are hiring immigrants instead of kids, especially in the last six years," he notes. Hiring one immigrant often leads to hiring more, because hiring usually happens through social networks. Another group replacing teens are workers 55 and older seeking to supplement their incomes. "If you walk into a mall or a grocery store, you'll see large numbers of older people working at jobs teens used to have," says Sum.

The shift of the U.S. economy from manufacturing to services has hurt boys in particular, says Bernard Anderson, practice professor of management at Wharton.

"Jobs in health, retail and other services pay lower wages and require fewer skills than jobs in manufacturing, transportation and utilities. Those jobs are more attractive to women than to men," says Anderson. Faring worst of all, he says, are disadvantaged, minority youth. White teens were almost twice as likely as black teens to work last summer, just as the poorest teens were least likely to work. "Many minority youth have just given up and stopped looking for jobs," says Anderson, a trend that artificially lowers unemployment figures for those groups. ("Unemployed" is used to define a person who is looking for work but fails to find it.)

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