At a recent dinner with clients, the conversation turned to our first summer jobs and early wages. I showed my relative youth by saying I earned the minimum wage, a princely $5.15 per hour when I was 16 years old. The retirees around the table one-upped me with their memories of earning as little as $1.25 when they were teens.
We all agreed that good working habits start young. Even the most basic job will teach the importance of punctuality, having a boss, pleasing customers—life skills that can’t be fully conveyed in the classroom. And a bit of extra cash doesn’t hurt.
Teenagers have been working less and less during breaks from school. From a peak of over 64% in 1978, summer labor force participation among 16-17 year olds entered a persistent decline, notably falling by half from the late 1990s to early 2010s. Some of the decline was structural, and welcome: with more jobs requiring a high school diploma, more teens are staying enrolled and graduating, lowering their year-round labor force participation. But recent cohorts face more competition for their summer breaks from sports, volunteering and academic enrichment.
TEENS CAN HELP CLOSE SEASONAL LABOR MARKET GAPS.
Today’s teens have plenty of opportunities amid an ongoing shortage of labor, especially for entry level roles. Common summer occupations like lifeguarding have faced persistent shortfalls. Immigration flows have not yet caught up with demand for less-skilled workers. The number of job openings in categories like recreation, restaurants and local government (park districts and libraries) are all holding above their pre-pandemic levels.
Recruiting firm Challenger, Gray and Christmas reports a balanced outlook for teen hiring this year. High inflation has added to labor costs, which can make employers more thoughtful about staffing up; after the pandemic hiring rush in 2020, summer jobs gains have cooled. However, as long as consumer demand stays strong, seasonal workers will be needed.
The wages may be paltry; the work may feel menial and demanding. But the value of teens taking those early jobs will be vital for growth: both for young workers individually, and for the economy broadly.
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