According to economists, teenagers who are looking for work this summer will likely find plenty of jobs that pay well.
Paul Harrington is a Rhode Island College labor economist who works with a team to produce an annual summer forecast for teenagers.
According to their analysis, the percentage of 16 to 19 year olds who will be working in this season is predicted to rise from 32.7 to 33.6 percent.
The outlook remains positive despite concerns about a possible economic slowdown. The overall labor market has shown resilience, adding 339,000 new jobs in May, even though the unemployment rate increased to 3.7 percent from 3.4 percent.
Nick Bunker is the director of North American Economic Research at Indeed, a job search website. He said: "There are definitely storm clouds hanging over the summer forecast." The Federal Reserve is raising interest rates in order to reduce inflation and this has sparked fears of a possible recession.
Bunker stated that the demand for positions was high this summer. Alicia Sasser Modestino is an associate professor at Northeastern University, Boston. She agreed that the demand for positions this summer was strong.
In 2020, the pandemic impacted employment opportunities. However, summer employment rebounded in the following year and was strong last summer.
Mr. Harrington stated that teen summer wages have increased in recent years even after accounting inflation. The median hourly wage for teens rose from $11.50 to $14 last summer. Pay for some jobs has increased in certain parts of the United States, especially lifeguards. A shortage of lifeguards in New York City has driven wages to over $20 per hour.
According to the National Restaurant Association, restaurants expect to hire 502,000 seasonal workers this summer. This is the highest hiring figure since 2017. The group didn't include the numbers for the last three summers because they said the pandemic-year hiring seasons were "not typical".
According to Bureau of Labor Statistics data, the rate of unemployment for teenagers in May was 10.3 percent. This is up from 9.2 per cent in April, but not much different from 10.5 per cent a year earlier.
Challenger, Gray & Christmas, an outplacement company, expects to create more than 1 million jobs for teens this summer, a slight decrease from last year. Andy Challenger is the senior vice president of the firm. He said that young people are already working more than in previous years. The firm reported that in March, 5.48 million people aged 16-19 were employed. This is the highest number since 2007.
Summer workers are needed in amusement parks, swimming pools, restaurants, and other places of entertainment, says Mr. Challenger stated that the question was whether teens would take on the jobs. He said that'so many teenagers who want to be employed are already doing so'.
Indeed's Mr. Bunker said that those looking for summer jobs shouldn't delay in applying. Don't wait till late June.
Answers to some questions about summer jobs for teenagers
I am overwhelmed with schoolwork and extracurricular activities. Why should I be working in the summer months?
Many students work during the summer months to provide for themselves, their families, or to save money for college. Even if you're just working for some extra money to spend, summer jobs can be beneficial. Amy Carney is a six-year-old mother and author of the book 'Parent on Purpose' about raising children.
She said that teenagers 'become more resilient through the inconvenient and uncomfortable experiences' they have when working at a restaurant, grocery or service industry job.
Isaac Hertenstein, a 17-year-old rising senior from Greencastle, Ind., founded a nonprofit to recruit student volunteers who teach younger students money management skills. He also agreed that summer jobs are important.
He said that summer jobs are a great way to teach teenagers about money and how important it is to be on time. He said that it makes a difference if you get $10 from your parents for lunch or if you earn the money yourself. He hopes to become a landscaper in order to save money for college. He will also gain experience by working as a consumer science research assistant at a university.
Tim Ranzetta is the founder of Next Gen Personal Finance. This nonprofit makes money management lessons for schools. He said that he spent summers working as a caddie. It helped him pay for college, and it allowed him to share insights with other golfers. He compared the summer job to a financial boot camp. It taught skills such as creating job applications, understanding tax forms, and opening a bank.
How can I increase my chances of finding summer employment?
Professor Modestino at Northeastern University said that you should apply for multiple jobs. She said that young people are often 'wildly optimistic' about their employment prospects and may think they will get hired just because they have submitted a single application. Multiple offers can be made if you submit more applications. You may get a higher salary or more flexible hours.
Do not dismiss any job that does not seem to be related to your interests. Aadi Gujral is a 17-year-old rising senior at Danville High School in California who has created an app to teach young people money management skills. He said that he had worked on projects for his father, a successful entrepreneur. He also claimed to have picked blueberries at his uncle's family farm.
He said, "It exposes one to the real life." "When you earn your own money you realize how important every dollar is."
Can teenagers save their summer earnings for retirement?
John Lanza, author of the book 'The Art of Allowance', a guide to teaching children financial literacy, says that summer employment can help teenagers learn the importance of saving, not just for short-term purchases, but also to ensure long-term security. It opens up discussions.
Roth individual retirement accounts are available to teens with income. Contributions are not tax-deductible, but teens don't earn enough to pay a lot of income tax. Deductions are therefore less useful to them. Roth investments grow tax-free and are able to be withdrawn without tax as long as they follow certain rules.