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According to economists, teenagers in search of summer jobs can expect to find many opportunities with attractive pay this year. The labor market is strong and there are shortages in sectors usually filled by teenagers, such as hospitality and leisure. The annual summer forecast for teenagers predicts that the percentage of working 16- to 19-year-olds will increase to 33.6 percent from last year's 32.7 percent. Despite concerns about a potential economic slowdown, the labor market has remained resilient. Although there are some worries about the summer's outlook due to factors like rising interest rates, the demand for summer employees is still high. While this summer may not be as spectacular as last year, there are still plenty of good opportunities for teens looking for work.
Last year, the pandemic made it difficult for teenagers to find summer jobs, but employment has bounced back and remained strong through the present summer. Recent years have seen increased wages for teens, even adjusting for inflation. Last summer, the median hourly pay for teenagers was $14, up from $11.50 in 2019. Certain jobs, such as lifeguards, are seeing wages spike in some regions. Even with a strong hiring outlook for summer 2021, the question remains whether teens will take the available jobs. Many students must work during the summer to support their families, save for college, or simply earn extra spending money. Additionally, summer jobs provide benefits such as gaining experience, financial literacy, reinforcing basic skills, and making connections in various fields. Wage and financial management skills can be learned through summer employment, including creating job applications, navigating tax forms, or setting up direct deposit for paychecks. Teenagers seeking summer work should not wait until the last minute to apply, as opportunities will fill up fast.
To improve your chances of finding summer work, apply to multiple jobs rather than just one. Don't assume that submitting a single application guarantees an offer; submitting more applications increases the likelihood of multiple job offers. Additionally, network with friends and family to increase awareness of job openings, and don't limit yourself to jobs that align perfectly with your career interests. Working in a range of roles can provide valuable real-world experience and financial education. Summer employment can introduce teenagers to the concept of savings and long-term financial security. Teenagers with earned income can contribute to a Roth IRA, which offers tax-free growth and withdrawals if certain rules are followed. Even small contributions to a Roth IRA can inspire long-term saving habits, and parents may offer matching contributions as an incentive. Although Roth IRA contributions aren't tax-deductible, most teenagers don't earn enough to make a significant impact on their income tax, so deductions are less relevant to them.