Teenagers across the country are entering one of the toughest summer job markets in recent years, as traditional jobs at restaurants, amusement parks, pools and stores either pause new hiring or choose adults for those roles.
In May, the unemployment rate for teenagers rose to 13.4 percent, from 13 percent in April and 12.4 percent a year ago, according to the Bureau of Labor Statistics.
A tighter labor market suggests that teen unemployment could reach its highest level in over a decade, said Andy Challenger, senior vice president of the outplacement firm Challenger, Gray & Christmas. In May 2015, the unemployment rate for teenagers was 17.8 percent, but it began to decline before the pandemic.
This year, the firm estimates there will be about one million new summer jobs for 16- to 19-year-olds. It could be the lowest number since 2010, Mr. Challenger said, adding that companies that traditionally hire summer workers may hold off this year.
Uncertainty about the economy is a major reason, said Alicia Sasser Modestino, an economist at Northeastern University in Boston. Some businesses are freezing roles or cutting seasonal positions over concerns about lower consumer confidence and fears that consumer spending will weaken under President Trump’s tariff policies. That hesitation hits teens hardest, Prof. Modestino said.
“Now when we’re starting to see the labor market cool off a bit in general, we’re seeing it hit teenagers harder, and teenagers first,” she said. “That’s because they’re really the canary in the coal mine. They are the last to be hired, the first to be fired.”