There’s good news for teenagers this summer. Experts are predicting the best summer job market for them since the recession, a sign of a more robust economy and increased summer travel.
More than one-third — 36 percent — of private-sector employers plan on hiring seasonal workers this summer, according to a May study by CareerBuilder. That’s up 6 percent from 2014 and is 15 percentage points higher than the national average during the recession years of 2008-2011.
Most of the summer jobs will be given to teenagers, a demographic that struggled mightily with unemployment during the recession.
Teenage unemployment spiked in June 2010 at 26.1 percent. That number has slowly but steadily decreased over the past five years. Last June, teenage unemployment had fallen to 21 percent, according to Bureau of Labor Statistics. The most recent jobs report, published in May, showed teenage unemployment at 17.1 percent, a nine-point decrease since 2010.
A more robust economy has created more demand for summer workers, according to Rosemary Haefner, chief human resources manager at CareerBuilder.
“As the economy has picked up, employers are seeing an increased demand for goods and services and are adding to their staffs to keep up and stay competitive,” Haefner said in an email.
She said there’s little variance in summer employment prospects “among the four basic regions — North, Midwest, South, West,” with each hovering around the national average of 36 percent.
Increased teenage employment is a result of the overall decrease in unemployment and a sign that the economy is rebounding from the recession, jobs expert Andrew Challenger said. During the recession, according to Challenger, a significant number of older, more skilled workers were forced to take seasonal and summer jobs. As those workers have retired or returned to more skilled jobs, opportunities for teens have opened.
“This really maybe the best market for teen jobs since the recession,” said Challenger, vice president of career placement firm Challenger, Gray & Christmas Inc.
Internships are also expected to increase this summer, the CareerBuilder study reports. Challenger said he expects to see an increase in paid internships. During the recession, many employers scaled back, offering only unpaid positions.
“Those internships are transitioning into paid internships,” he said.
In addition to a boost in overall jobs, pay is expected to increase for summer workers. Most jobs are paying above the federal minimum wage of $7.25 per hour. Seventy-two percent of employers will pay $10 or more per hour, an increase of 8 percent from 2014.
An April study by Snagajob.com estimated the average wage for summer employees will be $11.52 per hour, 87 cents above last year’s average.
While a number of states and cities have raised their minimum wage over the past few years, both Haefner and Challenger said the raise in wages is more a result of economic factors than recent legislation.
“Employers who have a growing need for employees are facing more competition for labor at all skill levels, so they’re increasing their pay to help attract needed talent,” Haefner said.
According to CareerBuilder’s study, the leisure and hospitality industry will provide the most jobs this summer, with 50 percent of employers offering seasonal positions. The financial services and information technology industries follow, with more than 45 percent of employers in both expecting to offer positions.
The number of summer jobs offered in the leisure and hospitality industry may be a result of an expected rise in travel this summer. The improving economy has allowed more workers to travel, which may in turn be responsible for the uptick in summer positions.
“The economy is rebounding. As a result, the tourism industry is continuing to grow,” said John Townsend, AAA Mid-Atlantic’s manager of Public and Government Affairs.
Travel and tourism, Townsend said, have always been a “gateway for summer employment.” He noted increased travel brings more demand for work in places such as hotels and restaurants, which bring entry-level positions for teenage workers.
An analysis by AAA showed that travel is already increasing this summer, driven partly by gasoline prices that are 95 cents cheaper than last year. AAA projected 921,400 Washington-area residents were expected to travel 50 miles or more from home during the Memorial Day holiday weekend, a 4.5 increase from 2014. Nationwide, AAA projected 37.2 million travelers, nearly two million more than 2014. The total was the highest in more than a decade.
