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Kids and Money: Outlook good for summer jobs

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Kids and Money: Outlook good for summer jobs

I was just a few weeks short of finishing ninth grade when my parents suggested I line up a job for the summer and make a few bucks rather than lying around doing nothing, as had been the case the year before and the year before that.

My idea: a car wash and detailing business. My father bought me a high-power sprayer, soap and other cleaning products to get me started, and I printed flyers to hand out to family relatives and friends. I even had a slogan: “Steve does clean.”

While I didn’t make big money as a solo entrepreneur, the summer experience gave me my first taste of work — from managing my schedule to paying for some of the expenses out of my earnings. I definitely gained an understanding of the work-and-money relationship.

I mention this because “help wanted” signs aimed at attracting teen workers for the summer are sprouting like dandelions at fast-food restaurants, amusement parks, swimming pools, retailers and other businesses that are traditional hiring havens for young workers.

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This summer, teens seeking work will find ample jobs with good pay, although there are concerns that higher inflation-related labor costs will slow some employers from hiring or deter them altogether, according to Challenger, Gray & Christmas Inc.’s annual summer hiring report.

The Chicago-based outplacement and business executive coaching firm predicts employers will hire about 1.3 million teens in May, June and July. That’s on top of the 5.6 million workers ages 16 to 19 who are already employed, the report said.

This summer’s prediction is up from the 1.1 million jobs estimate the firm issued for summer 2023 and the 1.03 million jobs actually added by teens last year.

If the numbers hold up, this summer will see the highest number of jobs added since 2020, when teens filled 2.2 million jobs just as the pandemic was taking hold, Challenger said. Since then, the total number of summer jobs has declined for three consecutive years.

Another barometer — the number of teens counted in the labor market, known as the so-called participation rate — stood at 36.7% in March. That’s the highest level since 2008.

Keep in mind that like my car-washing business, many teens will take on odd jobs or entrepreneurial gig work this summer, which is impossible to track in labor data.

As for pay, the U.S. Bureau of Labor Statistics notes that median weekly earnings for teens ages 16 to 19 in the first quarter this year was $619, up from $611 in the same period last year.

“Wages have risen for teens over the last few years, so teens can expect to make well over minimum wage in most roles,” said Andrew Challenger, a senior vice president at the job-placement firm.

However, he added, because employer costs are higher, teens “likely won’t have a lot of room for negotiation.”

While June is typically the busiest month for teen hiring, the Challenger firm recommends starting to fill out job applications earlier than that.

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