Teenage Employment Wasteland?

Focus NJ

By Elissa Frank, Executive Director of Focus NJ  On Aug 29, 2025

For generations, summer jobs have been a rite of passage for American teenagers – a time to earn money, gain experience, and build independence. In 2025, that tradition is under pressure.

According to the U.S. Bureau of Labor Statistics, the national unemployment rate for teens (aged 16 to 19) was 14.4% in June, the highest it’s been since the early pandemic days of May 2020.

At a glance, the broader economy looks stable, with overall US unemployment hovering at 4.1%. But a closer look reveals cracks. New federal data shows that hires and layoffs both dropped sharply in May – by 112,000 and 188,000 respectively – signaling a stagnant “low-hire, low-fire” labor market.

This slowdown isn’t new. Since early 2025, companies have been pulling back on hiring due to a cooling post-COVID economy and renewed trade war uncertainty under the Trump administration. Major employers like Warby Parker, JetBlue, and Polaris have either slowed or frozen hiring altogether. Even universities are enacting hiring freezes in response to threats against federal funding.

So how does this affect teenagers?

The squeeze begins with recent college graduates (ages 22-25). Burdened by an average $35,000 in student debt, many are unable to find jobs in their fields. The unemployment rate for this group reached 5.8% in March – the highest non-pandemic figure since 2012. Desperate for income, graduates are returning to their former high school gigs in retail, hospitality, and food service – roles traditionally filled by teens.

At the same time, automation and artificial intelligence are changing the face of entry-level work. Self-checkouts, digital kiosks, and automated inventory systems are reducing the need for staff in exactly the places where teens once found jobs.

The result? A perfect storm of limited openings, fierce competition, and long-term structural shifts that push teens to the back of the hiring line.

How long will this trend last? That remains unclear. But one thing is certain: the longer companies hold back on hiring and technology continues to replace human roles, the more America’s teens will miss out on the foundational experience of summer work – and all the life skills that come with it. 

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