Getting a summer job in the United States used to be something of a rite of adulthood for millions of teenagers. For decades, young people worked in restaurants, amusement parks, ice cream parlors or camps to earn extra money and gain work experience. However, that tradition is going through one of its weakest moments: this year, summer hiring for teens could be at its lowest level since official records exist.
A new analysis by the firm Challenger, Gray & Christmas revealed that Companies would hire around 790,000 teenage workers this summer. The figure would be the lowest since 1948the year the United States Department of Labor began collecting this type of data.
The contrast of this data is strong when compared to the late 1990s, when more than 2 million young people between 16 and 19 years old had temporary jobs during the holidays.
The drop not only reflects fewer job opportunities, it also shows a profound change in youth participation in the labor market. According to Challenger, in the 1980s about half of teenagers were part of the American workforce somehow. Currently, the percentage is below 30%.
“We’re seeing lower teen labor force participation, so it’s a combination of lower supply of those jobs and less demand for teens looking for summer jobs,” explained Andy Challenger, senior vice president at Challenger, Gray & Christmas. “There are many reasons why they are working much less.”
The leisure and hospitality sector, historically one of the largest employers of teenagers during the summer, is also experiencing difficulties. Businesses such as restaurants, summer camps, amusement parks and ice cream parlors have reduced hiring amid an uncertain economic outlook.
“We have seen some announcements of job cuts in sectors where teenagers typically find work,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas. “These are areas of the economy that typically have a big increase in summer work, but we haven’t seen strong hiring, so we think that will affect teenagers.”
Among the factors that explain this trend is the increase in operating costs for companies, especially in energy and services. In the face of economic uncertainty, many businesses prefer to limit new hires. Additionally, several basic customer service jobs are now performed using automated technology and man-made intelligence.
Another element that marks this possible historical reduction in offers for summer jobs has to do with job competition with older adults. Many people have stayed longer in the labor market due to the high cost of living or to problems saving for retirement, occupying positions that were previously common among teenagers.
At the same time, the priorities of many young people have also changed compared to their counterparts of yesteryear. Today, a large portion of teenagers spend their vacations preparing for college entrance exams, participating in competitive sports, or doing paid professional internships that they consider most useful for their academic future.
“Getting into college is much more competitive, so they are building their resumes with extracurricular activities and other projects,” Challenger said.
Some adolescents also help care for younger siblings within the home; Others have found different ways to generate incomesuch as tutoring, freelance work through information superhighway or content creation on digital platforms.
Despite the decrease in summer jobs, the youth labor market still maintains a presence. According to April labor data, The United States had almost 5.2 million workers between 16 and 19 years old. However, the panorama reflects an important transformation in how adolescents relate to employment and economic opportunities.
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