As inflation (and everything else) keeps rising, economists say that more teens joining the workforce is “absolutely essential.”
Part of the Grind
It’s not uncommon to see or hear about teenagers taking on part-time jobs or seeking summer work. Usually, this would be to have some extra spending cash or maybe even to save for college.
Not Because They Want to
However, with consumer prices increasing by over 20% during the past three years, necessity seems to be the main driving force as more and more teens are working to help support their parents.
More Joining the Work Force
Teen participation in the US labor market has been on a decline since the 1970s. Today, as per the U.S. Department of Labor’s jobs report for June, the current labor force participation for people between ages 16 and 19 is 37.4%.
An Economic Decline?
According to USA Today, that is 3% more than one year ago “and hovering near levels not seen since 2009, during the Great Recession.”
Toiling for Dollars
Andrew Challenger, senior vice president of Challenger, Gray & Christmas, an outplacement and executive and business coaching firm, concurs that financial need is what is pushing more teens into the workforce.
A Working Summer
And regarding summer work for teens, Challenger predicts about 1.3 million jobs to be added by employers.
Kids Have Needs
In addition to contributing to household expenses like rent and groceries, Alicia Sasser Modestino, a professor of economics and public policy at Northeastern University, states that over half of US teens also work to pay for their own expenditures like clothing and cellphones.
Life Isn’t Cheap
Speaking to USA Today, Modestino said: “You look at where rents have gone, where the price of groceries has gone, then having teenagers working during the summer is absolutely essential.”
Needs vs Wants
Modestino added: “The fact that things cost more means that more families have less money left over for the other things that teens would want, clothes, eating out or going to the movies.”
Financial Stress Rising
According to research, approximately two-thirds of working young people contribute to some kind of household bill.
And as per a survey that the Federal Reserve released in May, about 64% of parents living with children younger than 18 stated they felt financially secure in 2023.
But in 2022, that number was higher – 69%.
Not Just for Adults
Junior Achievement USA also recently conducted a poll, interviewing 1,000 teens aged between 13 and 18.
Those statistics show that 78% are currently worried about money, and that no less than 74% say their family’s economic situation is hindering them from achieving their own future goals.
Stats on Teens’ Stress Part 1
The poll also reveals the effect of stress on teenagers due to years of pandemic-related financial stress and inflation:
- During the last 12 months, 50% of teens have been worried about the ability of their parents or caregivers to pay bills.
- 37% state their parents or caregivers are clocking up more working hours.
Stats on Teens’ Stress Part 2
- 21% say the ability to pay bills has upset or caused their parents to cry.
- Additionally, the number of teenagers stressed about being unable to afford a post-high school education is 30%.
Stats on Teens’ Stress Part 3
- 24% of teens are scared that their family’s rocky financial situation might cause them to lose their home.
- And regarding the question of how money is impacting their lives, 32% of teens reported being concerned, 24% as scared, 18% as sad, and 13% said they feel angry.
Vacancies Will Be Filled
Referring to teenagers looking for work, John Linehan, president and CEO of Zoo New England in Massachusetts, an employer partner with the City of Boston’s youth employment program, said: “There’s no shortage of applicants.”
Not Just About $
However, working teenagers are not only seeking financial gratification – many are also after more social interaction, especially after being isolated for months during the pandemic.
16-year-old Mia Gardner earns at least $15 per hour as part of the City Spotlights Summer Leadership Program at the Boch Center. The Boch Center is a nonprofit arts and culture organization and an employer partner to the City of Boston’s youth employment program.
Meeting Social Needs
According to Mia, “COVID made me more shy. I wasn’t really social. But when I started this job, it got me out of my comfort zone and it helped me talk more and make new friends.”
The Pros of Working
Research tells us that being employed boosts high school graduation rates, decreases criminal justice involvement, and increases wages.
However, teenagers can also overwork themselves.
Working Too Much?
According to a study conducted in 2011 by the University of Washington, students who worked during the school year performed similarly to other students – that is, if they worked under 20 hours a week.
A Bad Balance
Students who worked 20 hours or more during the school year were more likely to see a drop in their grades and experience behavioral problems.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.