Recently, the United States marked a record seven-year stretch of continuous monthly job creation, resulting in a historically low unemployment rate of 4%. In addition to signaling a strong economy, a tight labor market typically improves job prospects for groups with fewer skills and less experience, including teens.
Why More Cities Should Offer Summer Jobs for Teens
As of July 2018, the U.S. unemployment rate for teens remains high at 13.1% — more than twice the rate of any other group. Even more worrisome has been the decline in the share of teens participating in the labor force, which now stands at 37.1% — far below the historical peak of 59.3% in August 1978. Teen employment has fallen two reasons. For some teens, working has been replaced by other activities such as coding camps, preparing for academic tests, or travel — all of which look good on a college application. But for those who might not be college-bound, it appears that fewer pathways exist to enter the labor market. Early work experience is an important tool for enhancing the future employment prospects and earnings potential of low-income youth — and summer jobs play a big role here. By facilitating the transition from school to the labor force, summer jobs can help students apply what they learn in school, acquire work-related skills, and develop contacts with employers. These jobs can also help firms seeking to diversify and expand their talent pipelines.