Business

Teen summer hiring forecast points to weakest season since 1948

Outplacement firm Challenger expects teen summer hiring to hit a record low as entry-level openings shrink and employers stay cautious.

Maya Lindqvist

By Maya Lindqvist · Senior Technology Correspondent

3 min read

Teen summer hiring forecast points to weakest season since 1948
Photo: Fortune

Teenagers seeking summer work face one of the toughest hiring markets on record, according to an Associated Press report. Challenger, Gray and Christmas, using U.S. Bureau of Labor Statistics data, projects teen summer hiring could fall to the lowest level since federal tracking began in 1948.

The weakness matters for young workers trying to earn money, gain experience and get a first line on a resume. Federal data cited by the AP show about one-third of Americans ages 16 to 19 had jobs last summer, compared with roughly 60% at a late-1970s peak.

Challenger found that the number of jobs teenagers landed last summer dropped 25% from the prior year, the AP reported. The firm said inflation, oil prices and cautious hiring are likely to reduce opportunities again this year.

Entry-level work is harder to find

Nicole Bachaud, an economist at ZipRecruiter, told the AP that openings for workers at the bottom rung of the labor market have narrowed. She described teens as among the labor market’s “most marginalized groups.”

BLS data cited by the AP show teens most often work in food preparation, food service and sales. Jaune Little, director of recruiting services at the human resources company Insperity, told the AP that some entry-level roles have disappeared, while remaining jobs often go to applicants with more experience.

Little said employers with smaller teams have less capacity to train first-time workers. She told the AP that companies are often choosing more skilled candidates, even when those candidates may be overqualified.

The AP reported that Jaelyn Chester, a 17-year-old from Lake Mary, Florida, has sent out dozens of applications while keeping copies of her resume in her car. Chester, described by the AP as an A student, basketball player and aspiring engineer, said she has looked widely and is not out of work because she lacks ability.

Chester told the AP that without a job she worries about paying for gas, going to a concert and taking a planned trip with friends to look at colleges in North Carolina. She said she now would consider jobs she once did not want, including dishwashing.

Young applicants report long searches

The AP reported that Max Stephenson, a 19-year-old from Little Rock, Arkansas, began looking for work after graduating from high school last year and did not find a summer job. Stephenson later got a work-study cafeteria job at the University of Arkansas-Pulaski Technical College, but was again without work after school ended.

Stephenson estimated to the AP that she has applied for between 50 and 100 jobs. She said advice from older people to walk in and offer a firm handshake has not worked well in the current market.

A 2022 Pew Research Center report cited by the AP found teen summer employment weakened during the early-2000s dot-com downturn and fell further during and after the Great Recession. Pew also found white teens were more likely to be employed than teens from other racial groups.

The AP reported that Connor Vukelich applied for jobs within 30 miles of his home near Vancouver, Washington, after turning 16 and received no offers. He later worked on his parents’ lavender farm and this year launched Poppin’ Jobs, a job-search site aimed at teens and people in their 20s.

Vukelich told the AP he believes artificial intelligence has taken some potential jobs from teens and that higher minimum-wage laws in some states have increased competition with experienced workers. The AP also reported that Demie Njea, a 16-year-old in Lexington, Kentucky, applied for more than 100 jobs over multiple summers before getting hired at Sonic.

This story draws on original reporting from Fortune.