Unemployment Hammers Younger Workers

John Challenger, CEO of global outplacement firm Challenger, Gray & Christmas Inc., says because of their perceived inexperience.

"In an environment where companies are very thinly staffed, employers need people who can perform multiple tasks, multiple roles," says Challenger. "Younger workers in this environment may get marked down in the hiring process for not having enough experience. Companies may be opting for someone they know can hit the ground running and who they won't have to train on the job."

Another reason why unemployment may be so high among workers age 25 to 34 is because they may have short tenures with their employers and because a lot of employers use a "last one hired, first one fired" method for determining who to cut in a layoff, adds Challenger.

The same reasoning around tenure explains why unemployment rates are considerably lower for older workers. "Many older workers have acquired more job tenure with their employer, and therefore, may be less likely to be laid off than younger workers," notes Steve Hipple, an economist in the Bureau of Labor Statistics' Division of Labor Force Statistics, via e-mail.

Sara Rix, strategic policy advisor with the AARP's Public Policy Institute, says unemployment rates for older workers have historically been lower than younger workers.