This summer is anticipated to be the worst on record for teen hiring, in accordance with the newest forecast from Challenger, Gray & Christmas.
The outplacement and consulting agency projected that an estimated 790,000 jobs would go to teen staff in May, June and July, touchdown under final summer’s record-low 801,000 teen jobs added, in accordance with Bureau of Labor Statistics knowledge not adjusted for seasonality.
If this summer’s hiring expectations had been to play out, that tally would set a recent record low.
Job progress has slowed considerably throughout the US labor market following the post-pandemic financial rebound.
Part of that slowdown is because of causes extra structural in nature, notably growing older demographics, an immigration slowdown and expertise adoption.
However, different components have additionally hampered hiring: the unwinding of post-pandemic labor hoarding practices; high uncertainty (due to inflation, tariffs, coverage shifts, geopolitical developments and rates of interest); and, most lately, the oil shock and other ripple effects from the Iran war.
What’s resulted is a “low-hire, low-fire” labor market the place turnover has stalled, leaving few alternatives for unemployed staff in addition to these wanting for their first job.
Teen staff are dealing with a slew of challenges this summer, together with inflation, oil costs, synthetic intelligence, older staff taking part-time and seasonal roles, and competing extracurricular priorities, mentioned Andy Challenger, chief income officer at Challenger, Gray & Christmas.
“This isn’t the teen workforce of the 1980s,” Challenger mentioned in an announcement. “Today’s 16-to-19-year-olds are balancing AP coursework, caretaking for their families, club sports that run year-round, summer enrichment programs, paid internships, and online side hustles. For many families, the calculation around a traditional summer job has changed.”
Rising gas prices and inflation are squeezing budgets, each for shoppers in addition to the companies who rent teenagers, he added.
“When margins tighten, summer hirers will wait for demand to dictate hiring,” Challenger mentioned.