The current tight labor market has resulted in a surge in demand for teenage workers, leading to higher wages compared to previous years. Many teenagers across the country are actively seeking employment during their summer breaks.
According to government data, the percentage of employed Americans aged 16 to 19 has been on an upward trend in recent years. In April, nearly 34% of individuals in this age group had jobs, compared to 30% during the pre-pandemic summer of 2019.
Hourly wages in industries that typically employ teenagers, such as restaurants, retailers, and amusement parks, have also seen an increase. In April, wages in these industries rose by approximately 5% compared to the previous year. While this increase surpasses the average pre-pandemic annual growth rate of 3%, it is only slightly higher than the 4.9% year-over-year inflation rate measured in April.
Despite the national unemployment rate remaining at a historically low level of around 3.4% in April, there are approximately 1.6 job openings for every unemployed person, according to the Labor Department. In normal circumstances, this ratio would typically be closer to one-to-one.
Although the leisure and hospitality industry was severely impacted by the COVID-19 pandemic and remains about 402,000 workers (approximately 2.4%) below its pre-pandemic levels as of April, hiring in the sector has been steadily increasing. In April, the leisure and hospitality sector saw a rise of 31,000 jobs in payrolls. This growth was primarily driven by bars and restaurants, which added 24,800 workers, as reported by the Bureau of Labor Statistics.
The current economic landscape has created favorable conditions for teenagers seeking employment and the opportunity to earn money while gaining valuable job experience. Alongside these developments, various states across the country have implemented changes in public policy, despite facing resistance from child welfare advocates who express concerns about the potential erosion of child labor protections.
In 2022, New Jersey passed a law allowing 16- and 17-year-old workers to work up to 50 hours per week during the summer, an increase from the previous limit of 40 hours. This change was aimed at addressing staffing needs in the state’s tourist attractions along the Jersey Shore. The revised policy has garnered positive feedback from parents like Sally Rutherford, whose 17-year-old son Billy is now able to use his earnings from his job at a Jersey Shore amusement park towards purchasing a car. Rutherford emphasized that the job has made her son “much more independent and responsible,” as reported by the AP.
In Iowa, Republican Governor Kim Reynolds recently signed a law that permits 16- and 17-year-olds to serve alcoholic beverages in restaurants, while also expanding the allowable working hours for minors. Similarly, Wisconsin’s legislature is currently considering a proposal that would further extend these opportunities by allowing minors as young as 14 to serve alcohol in bars and restaurants. However, it is important to note that the bill restricts minors to serving seated customers and does not permit them to serve patrons directly at the bar. To become law, the measure would require approval from lawmakers in both chambers of the Republican-controlled legislature and the signature of Democratic Governor Tony Evers.
While these policy changes present expanded job opportunities for teenagers, concerns have been raised by child welfare advocates regarding the potential implications for child labor protections.