Teenagers and young adults across Texas are facing what experts describe as the most challenging summer job market in decades, prompting many to seek work through gig platforms as traditional employment opportunities become harder to find.
A forecast from workforce consulting firm Challenger, Gray & Christmas predicts employers will add just 790,000 jobs for workers ages 16 to 19 this summer, which would mark the lowest level of teen summer employment since the federal government began tracking the data in 1948.
The projection follows last year’s total of 801,000 summer jobs, which was already the weakest on record.
Multiple Factors Squeezing Teen Employment
Labor analyst Parag Amin said young job seekers are facing unprecedented competition for positions that were once considered entry-level.
“It is the toughest labor market for teens and summer jobs since 1948,” Amin said, per Fox 4 KDFW. “As a result of that, adults staying in the workplace longer adults taking jobs that traditionally many teens would perform, including lower-paying jobs like working in retail or working in fast food.”
Experts point to several factors contributing to the hiring slowdown, including persistent inflation, rising fuel costs, automation, and increased competition from both older workers and recent college graduates.
Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, said many of the industries that traditionally hire teenagers are facing economic pressures.
“This year, inflation and high oil prices are hitting the handful of industries like leisure and entertainment, that extra pocket money spending during the summer, where teenagers tend to find most of the summer jobs,” Challenger said, according to WFAA.
Hiring plans in the entertainment and leisure sector have dropped significantly, according to the firm’s forecast. Through April, employers in those industries announced just 8,261 hiring plans, down 70% from the same period last year.
“The collapse in Entertainment and Leisure hiring announcements is one of the clearest signals we have for the summer,” Challenger said, People magazine reported. “Theme parks, resorts, hotels, and event operators are signaling they’ll run leaner this year. That is exactly the kind of work teens depend on.”
Automation Reshaping Entry-Level Work
Technology is also changing the landscape for young workers entering the labor market.
Tom Kim of the University of Texas at Dallas School of Business said automation has reduced many positions that once served as stepping stones for teenagers.
“I think there’s a multitude of things going on,” Kim said, per Fox 4. “I think automation has eliminated some of those entry-level positions that normally teens would have.”
Challenger echoed that assessment, noting that businesses have increasingly adopted self-service technology.
“A lot of companies like fast food restaurants and convenience stores have made investments over the last few years in self-service kiosks, checkouts, those typical jobs that would go to teenagers,” Challenger said, per WFAA.
Nicole Bachaud, a labor economist with ZipRecruiter, said employers have remained cautious about expanding their workforces amid ongoing economic uncertainty.
“Stability’s been the name of the game for the last year and a half, maintaining their workforce, not really looking to expand, which has really been limiting entry-level opportunities,” Bachaud said, WFAA reported.
Students Describe Frustrating Search
For many students, the job hunt has become an exhausting process.
“It was the most frustrating thing I’ve had to deal with applying to hundreds if not thousands of applications for internships or just finding a respectable salary. It was just terrible,” said Lukas Lindestaf, who has struggled to secure work, according to Fox 4.
Yannick Felli, a mechanical engineering student, said even technical fields have become highly competitive.
“Trying to find a job, or an internship, like, I’m doing mechanical engineering right now and even then the job market is just very tough for me,” Felli said, per Fox 4.
Gig Work Provides Alternative
As traditional opportunities become scarcer, some young workers are turning to gig platforms for income.
One option is Sparehandstudents.com, a platform founded by Texas A&M graduate Zach Miller that connects students with homeowners and others needing short-term help.
“So, this is doing things like moving boxes, mowing their lawn, cleaning their home, assembling furniture, just one-off things like that,” Miller said, per Fox 4. “As a student, you can earn up to $25 to $30 per hour on average, which is a great way to earn some extra money.”
Orion Ramirez said the platform helped him find work after more conventional efforts failed.
“I reached out to my connections trying to get a job. Nothing worked, and so I found this service and, honestly, I really believe in it. It feels great doing it,” Ramirez said, Fox 4 reported.
“It’s really the perfect tool to set you up beautifully for work anytime you have a free schedule or anything,” he added.
Some Signs Of Opportunity Remain
Despite the challenges, economists say there are indications that demand may be increasing in some sectors, including transportation and retail.
“That includes things like transportation and retail,” Bachaud said, WFAA reported. “Despite high gas prices, we’re still seeing some signals that employers are increasing demand for employment in those areas.”
While it remains unclear when traditional summer hiring levels may rebound, experts say many young workers are adapting by exploring alternative employment options and flexible gig opportunities to gain experience and earn income.
