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The U.S. Hiring Slowdown and Its Impact on Teen Summer Jobs
The U.S. hiring slowdown is having a noticeable effect on the teen summer job market, which has seen a significant decline in recent years. More teenagers are not looking for jobs, and fewer of those who do are being hired. This shift marks a departure from the post-pandemic hiring boom that previously provided teens with an exceptionally favorable job market.
A Shift in Employment Trends
According to estimates by outplacement firm Challenger, Gray & Christmas, teens are projected to gain only 1 million jobs in May, June, and July—the lowest tally since 2010. Experts point to several factors contributing to this trend, including a slowing labor market, economic uncertainty driven by trade policies, and automation that is reducing entry-level positions typically sought by young people.
The Labor Department is expected to report a modest 113,000 job gains for June, down from 139,000 in the previous month. While small businesses continue to hire a significant number of teenagers for summer roles, the overall hiring rate for this age group has declined.
The Decline in Teen Employment
Labor Department data reveals a more dramatic drop-off in teen hiring. The share of 16- to 19-year-olds working or looking for jobs fell to 35.4% in May from 37.4% a year earlier—its lowest May level since the pandemic in 2020. Marquise Shiemvs, manager of Chip City, a cookie shop in Arlington, Virginia, noted that finding teenage employees has become more challenging. “They’re really not coming in and putting in applications,” she said, adding that the shop has had to recruit customers instead.
The teen unemployment rate rose to 13.1% last month from 12.1% a year earlier, the highest May mark since 2020. About 5.5 million teens were employed last month, the lowest May tally since 2022.
The Role of Summer Jobs
For decades, summer jobs have served as a rite of passage for many teenagers. In 1979, 55% of teens were working or job hunting in May. However, this share dropped to 32%-34% through the 2010s as more teens engaged in school activities, volunteer work, or gig jobs not tracked by the Labor Department.
The Pandemic’s Impact
The pandemic significantly altered the job landscape. As the economy reopened in 2021, businesses facing labor shortages turned to young people to fill vacancies. High school and college students eager to return to work were drawn by higher wages and increased demand. The teen unemployment rate fell to 9.5% in May 2021, the lowest since 1953.
However, the post-pandemic hiring boom has since waned. The share of teens working or looking for jobs hit 37.4% in May 2024, the highest since 2009. Experts note that summer jobs provide valuable soft skills, such as punctuality and teamwork, and can lead to long-term benefits like reduced criminal justice involvement and higher wages.
Factors Suppressing Teen Hiring
Several factors are contributing to the current downturn in teen employment:
- A Softening Economy: Job growth has slowed, with average monthly job gains dropping from 168,000 in 2024 to 124,000 this year.
- Consumer Sentiment: Weakening household spending, especially in discretionary sectors like travel and hospitality, has impacted teen employment.
- Competition: Teens are now competing with recent college graduates and older adults for available positions.
- Automation: Retailers are increasingly using self-serve checkout systems, reducing opportunities for teens.
- Immigration Trends: Immigration levels have fluctuated due to policy changes, affecting the availability of certain jobs.
Mixed Effects of Immigration
While declining immigration could theoretically reduce competition for some jobs, the impact on the teen job market is mixed. Recent migrants may be avoiding certain industries due to heightened scrutiny, but their U.S.-born children might step in to fill these roles.
Looking Ahead
Experts suggest that the cooling labor market will likely continue to affect teen employment. With fewer opportunities and more competition, teenagers may need to adapt their strategies for finding work. For now, the summer job market remains a challenge for many young people seeking their first professional experiences.