Dailey Jogan, who is only eighteen years old, was ecstatic to get a summer job as the head swim coach for a team in the metro Detroit area. She would make $15 an hour and get free movie tickets and gym access. Five years ago, her older brother held the same role, so he was surprised by the changes.
Jogan’s wage is 25% more than what her brother earned, demonstrating how summer jobs nowadays offer not only higher pay but also added benefits that make young workers feel appreciated.
The Summer Job Is Back
What is a summer job? A summer job is considered a job that a student does during the summer vacation. The idea of a summer job, which was formerly associated with teenagers working as lifeguards or flipping burgers, is becoming increasingly popular. In addition to providing teens and young people with their first experience of the working world, summer jobs usually offer temporary employment over the summer months.
This experience teaches them important life lessons like responsibility, time management, and teamwork. After years of decline brought on by academic pressures and economic crises, 2024 has witnessed a spike in the number of teenagers entering the workforce as a result of a labor shortage that has made summer jobs more popular than ever.
A Resurgence of Summer Jobs
Increasing wages and providing financial support for education are among the incentives motivating more teenagers to enter the workforce, reversing decades of declining youth employment. While slightly lower than the highs of the late 1970s, about 40% of teenagers were working at the peak of this year, the highest since 2009.
Northeastern University economics professor Alicia Sasser Modestino acknowledges that she was mistaken in 2021 to think that teenage career opportunities would not last, but she does highlight the unexpected comeback of summer jobs.
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Higher Wages and Better Benefits: The New Normal for Teen Workers
For American teenage workers, the post-pandemic labor market has brought about significant changes. Teenagers now enjoy better benefits and greater incomes in their summer jobs than in the past, a trend that is certain to continue, unlike other economic shifts that have eased.
Payroll platform Gusto, which serves more than 300,000 businesses across the country, revealed that earnings for recently employed teenagers between the ages of 15 and 19 have increased by more than 36% since 2019, hitting $15.68 per hour in June 2024. This change demonstrates the long-term effects of the labor shortage brought on by the pandemic on the young labor market.
What Do Higher Wages Lead To?
One major element encouraging teenagers to return to labor is higher wages. Teenagers who may otherwise choose leisure time are drawn to summer jobs as employers increase wages in an effort to attract workers in a competitive market.
Thanks to these wage increases, teens now have more financial independence. These increases also promote higher consumer spending as teens spend their earnings on a range of goods and services. Spending like this supports regional economies and feeds a growth cycle that is advantageous to businesses and workers alike.
What Are the Factors Influencing Wage Rates?
Several factors influence the wage rates that employers offer for summer jobs, with one of the major elements being the overall state of the economy. A strong economy stimulates business growth, which raises the demand for labor. Employers are forced by the rising demand to pay more to attract the best workers.
Conversely, during recessions, companies tend to concentrate on cost-cutting strategies, which results in fewer job openings and lower wages for employees. As a result, wage growth frequently stagnates during these times.
Legal and Market Factors Impacting Wages
Laws pertaining to the minimum wage and labor market dynamics also have a big influence on wage rates. Employers must adjust their pay scales in line with increases in state and local minimum wages. Some companies willingly pay more than the minimum wage in order to draw in better workers or to stand out from competitors.
Employers are also forced to raise compensation to fill positions due to the tight labor market, particularly in specific areas with low unemployment rates. The type of work, the skills needed, and the cost of living in the area all affect pay levels.
What Is the Youngest Age to Get a Summer Job?
The Fair Labor Standards Act (FLSA) permits minors to begin working in the United States at the age of 14 for the majority of non-agricultural jobs. Nevertheless, there are limitations on the kinds and hours of labor that 14–15-year-olds can perform.
They are typically not permitted to perform dangerous tasks like operating heavy machinery. They are only permitted to work after school hours, with restrictions on the number of hours they can work each day and each week. As teenagers get older, these restrictions ease, allowing them to take on more responsibility and work longer hours.
Special Conditions for Younger Workers
Younger teens and kids may occasionally work in specific industries like entertainment or agriculture, but these jobs are subject to strict regulations to ensure safety. Parents and teenagers considering summer jobs should be aware of these legal requirements and limitations.
By following age-appropriate guidelines and restrictions, teens can safely gain significant work experience and responsibilities while staying within legal boundaries.
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Summer Job Opportunities
Over the years, the nature of summer jobs has significantly changed. While regular jobs like retail, food service, and lifeguarding are still in demand, more and more teenagers are looking into unconventional and diverse options. Teens can now work as freelancers in areas like graphic design, pet sitting, and tutoring, thanks to the rise of the gig economy.
Furthermore, many teenagers are using online platforms to generate income via e-commerce, social media, or content production, which reflects the shift in employment options toward digital platforms.
The Long-Term Benefits of Summer and Part-Time Jobs
An earlier research study involving more than 256,000 Canadian youths uncovered that young people with part-time jobs typically progress to better-suited careers. Work experience helps them refine their preferences, acquire soft skills, gain valuable references, and strengthen their job search skills.
Alicia Sasser Modestino points out that work experience—even in challenging roles like a pasta factory—motivates young people by demonstrating the value of education and the realities of the workforce. Barbara Greenberg adds that these jobs also impart valuable lessons about the value of money and budgeting. For example, some teenagers like to stretch out the extra money they make to account for inflation.
Summer Jobs Boost Academic Success
According to a 2023 study by Sasser Modestino and Richard Paulsen, published in Education Finance and Policy, youths from low-income communities who participated in Boston’s Summer Youth Employment Program experienced notable improvements in their academic performance.
Compared to their counterparts without jobs, those who obtained summer jobs had a 22% lower chance of dropping out of high school and a 7% higher chance of graduating on time. These teenagers’ grade-point averages also improved by 6.8%, demonstrating the beneficial effects of summer jobs on academic performance.
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