During the 1960s and 1970s—amid the post World War II economic boom—teen labor force participation increased steadily, hitting a peak of 59.3% in August of 1978. However, this rate gradually decreased throughout the 1980s and 1990s and experienced a significant decline in the early 2000s. By May 2011, the teenage labor force participation rate had plummeted to a mere 33.3%.
Although there were slight improvements following the Great Recession, it wasn’t until the COVID-19 pandemic that the demand for teenage workers increased significantly. Following the initial lockdown period, many adults were hesitant to return to work due to health concerns, childcare issues, and challenging customer interactions. Teenagers filled in these job vacancies, and as a result, the teenage labor force participation rate began to grow, sustaining levels not seen consistently since early 2009. With ongoing labor shortages continuing to plague the service sector, the teenage labor force participation rate has continued to grow and reached 37.4% in March 2023.
While teenage labor force participation is up nationally, data from the U.S. Census Bureau shows that a greater proportion of teens tend to work summer jobs in states with lower minimum wages. In fact, research from the Congressional Budget Office suggests that each 10% increase in minimum wage results in a 0.7% decrease in teenage employment.
The relationship between raising the minimum wage and teen employment is a complex and contentious issue. While proponents point to its positive effects on reducing poverty, opponents of minimum wage increases argue that higher wages entice older workers to apply for roles where teenagers are typically employed, thereby increasing competition. Further, as labor costs increase, employers may be less willing to hire and train less experienced and less productive workers, such as teens. At the state level, New Hampshire has the highest percentage of teenagers working summer… |
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