Are summer jobs for US teens becoming extinct? Know the truth behind declining opportunities

Time of India

7 days ago

Every summer, millions of teenagers trade their schoolbooks for summer jobs. But economic uncertainty, growing extracurricular demands, and the advance of automation are making it harder for young Americans to find work and earn extra income, reports NewsWeek.
A recent report from outplacement firm Challenger, Gray & Christmas (CGC) highlights the growing challenge. The company projects that teens will secure about one million jobs during May, June, and July—down from last year's forecast of 1.3 million and slightly below the 1.1 million jobs ultimately filled. If accurate, this would be the lowest summer job gain since 2010, when only 960,000 positions were added.
"Many teens need these jobs and employment opportunities to stay in school, help with school expenses and help their families," said sociologist and labor market expert Yasemin Besen-Cassino. "Limited opportunities could mean more hardship for teens from lower-socio-economic status backgrounds."
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Senior Vice President of CGC Andrew Challenger summarized the threats: "This summer, we may not see the opportunities manifest. With the current socio-political climate, we may see fewer tourists; with the expected impact of tariffs, we may see higher prices and lower consumer demand. Those who traditionally hire in the summer may hold off this year."
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'Demand size of the equation'
Besen-Cassino shared with Newsweek her concerns about the broader economic landscape: 'It's not surprising that fewer businesses are planning to hire teens this summer.'
'This reflects only one side of the equation,' she added. 'Given the economic uncertainty, tough job market, and widespread layoffs, many teenagers are increasingly anxious about their future employment prospects.'
These effects are already showing up in labor statistics. According to data from the Bureau of Labor Statistics cited by CGC, just 5.5 million teens aged 16 to 19 were employed in April—marking the lowest total for that month in three years. The
teen unemployment rate
also rose to its highest level since 2020, during the early months of the COVID-19 pandemic.
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Eric Edmonds, Chair of the Economics Department at Dartmouth College, pointed to a growing 'mismatch' in the labor market. He and Besen-Cassino noted that many teens are opting for alternative summer pursuits—such as classes, internships, and credentialing programs—that they believe will better prepare them for long-term career success.
'A few decades ago, teens might have seen summer jobs as a stepping stone to future employment,' said Besen-Cassino. 'Now, many are turning to internships or skill-building roles that enhance their resumes and improve their marketability.'
While youth unemployment has dropped significantly since the pandemic's peak, it remains elevated—currently at 9.6 percent, up from 9.3 percent a year ago, according to the Bureau of Labor Statistics.
But beyond competing interests and a declining desire to work traditional summer jobs in retail or hospitality, a larger structural threat looms: automation.
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'It's not just economic uncertainty reducing the availability of teen jobs,' said Andrew Challenger. 'Employers are increasingly turning to technology and automation to perform tasks that teens used to do.' Edmonds added that a sharp increase in motivated teen workers could potentially slow the push toward automation, which is largely driven by chronic labor shortages in low-wage industries such as agriculture and services.
'Teen employment in the US peaked in the 1980s and '90s, when many teens held jobs in retail and the service sector,' Besen-Cassino told Newsweek. 'But with the decline of shopping malls and the rise of automation and AI, the demand for these jobs has dropped significantly.'
These shifts are contributing to rising concerns not only among teenagers but also among their parents, who may face similar job risks.
'There's a gap between the wages teens expect and what employers are willing to offer,' Edmonds explained. 'So while many teens are actively looking for work, they're often hesitant to pursue traditional roles in retail or food service.'