Why Fewer Teenagers Are Joining the Workforce Today

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Jessica Dickler

@jdickler

Key

Points

  • The share of teens participating in the labor force sank from roughly one-half to one-third of the population — a decrease of 17 percentage points — since 2000.
  • Yet kids today are not slacking off; they are working harder in school and have less free time than teenagers had in the past.

Most adults recall their first job during summer or after school, which often helped fund college tuition or a first car. Despite the increasing costs of education and vehicles today, a smaller proportion of teenagers are working compared to previous generations.

Students arriving at school

The participation of teens in the labor force has significantly declined over the past few decades. In 1979, nearly 60% of American teenagers were employed—a historic peak. As of recent data, only about 35% of teens aged 16 to 19 are part of the workforce. This marks a decrease of 17 percentage points since the year 2000, where roughly half of the teen population was employed.

Several factors contribute to this downward trend. One primary reason is the intensification of high school education. According to Lauren Bauer, a fellow in Economic Studies at the Brookings Institution and co-author of a study on this topic, today’s high school students face increased demands. These include more rigorous homework, stricter course requirements, and additional graduation mandates like community service. “There is less time in the day to hold down a job,” Bauer explains.

Moreover, the rise of extracurricular and summer programs has surged over the past decade. Eric Greenberg, president of Greenberg Educational Group, notes that there is a prevailing belief among parents and students that participating in more activities is beneficial for college applications and personal development.

Contrary to some perceptions, teenagers are not spending this extra time on leisure or screen activities. Bauer emphasizes that “teenagers are working really hard,” dedicating more time to academics and structured programs. Additionally, a reduced demand for low-wage labor and increased competition from older workers have made it more challenging for teens to find employment.

Another factor is the higher enrollment rates in educational institutions, with more schools adopting year-round schedules. The positive side of this is reflected in rising graduation rates nationwide.

However, balancing work and school presents its own challenges. Studies indicate that teens who juggle both tend to spend less time on their education compared to those solely focused on school. This highlights a trade-off between immediate work experience and long-term academic benefits. Research suggests that prioritizing education can lead to better job prospects in the future.

On the flip side, teens who do not work miss out on early opportunities to learn essential financial skills. Shelly-Ann Eweka, a certified financial planner at TIAA, advises that parents can fill this gap by involving their children in financial decision-making. This could include setting budgets for personal expenses, discussing the costs of higher education, or opening savings accounts to teach the value of compound interest.

Engaging teens in financial conversations has long-term benefits. Studies have shown that young adults who discuss money matters with their parents are more likely to budget effectively, save a portion of their income, maintain an emergency fund, and invest in retirement accounts.

In summary, while fewer teenagers are participating in the workforce today, they are investing more time in their education and extracurricular activities. Parents play a crucial role in ensuring that their children still gain financial literacy and responsibility, preparing them for successful financial management in adulthood.