Key takeaways

• It may be one of the leanest teen job markets in years, but young people remain eager to work, with job searches hitting record highs.
• At small businesses, hourly wages for teens have risen slightly above inflation, with young workers making $14.82 per hour — a 3.4% increase from May 2024.
• Teen unemployment hit 14.4% in June as many employers — including restaurants, retailers, and parks — have scaled back summer hiring.

Teen summer wages are rising faster than inflation, but competition is stiff as a tight labor market makes landing one harder than ever.

The summer job market is tough this year, but American teens may be tougher. According to the Bureau of Labor Statistics, 41.2% of U.S. teens (ages 16–19) were working or actively looking for work in June, up from 33.5% in January.¹ While the seasonal spike occurs annually, young Americans are facing a greater test to teen spirit this summer.

Mainstays of youth summer work — like camp counselors, lifeguards, tutors, waiters, and babysitters — are harder to come by this season, as employers pause hiring or turn to adults to fill those roles.² The teen unemployment rate rose to 14.4% in June, up from 13.4% in May and 12.3% a year earlier.³ That’s  more than three times higher than overall unemployment, which sat at a historically low 4.1% in June.

Read more: June jobs report tops expectations with strong labor market

What’s behind the slowdown?

Among other factors, subject matter experts point to a generally slowing U.S. labor market, economic uncertainty, and automation that’s replacing the kind of entry level jobs typically acquired by young people.⁴ Teens are projected to gain 1 million jobs this summer, the lowest tally since 2010, according to estimates by consulting firm Challenger, Gray & Christmas.⁵

The firm attributes this decline to several factors, including anticipated tariff impacts, rising costs, and employers' hesitancy to hire due to economic uncertainty. These challenges are expected to particularly affect sectors that traditionally employ teen workers, such as hospitality and retail.

Ready to clock-in

Still, teenagers are undeterred. Job searches in early May for summer work were at their highest in recent years on job platform Indeed.⁶ Small businesses are a bright spot for young people looking for a new gig despite the tough market. According to payroll platform Gusto, teens aged 15–19 accounted for 19% of all new hires at small businesses in May, consistent with previous years (19.1% in April 2024 and 18.3% in April 2023).⁷

Wages are on the rise, too. The average hourly wage for teens at small businesses reached $14.82 in May 2025, up an estimated 40%* since January 2020.⁸ That increase outpaces the 27% wage growth seen across all private-sector workers during the same period.⁹ On a year-over-year basis, teen wages grew by 3.4%, exceeding the 2.2% rise in consumer prices — indicating real earnings gains for young workers.^10,11

Teen hiring is particularly strong in cities with thriving tourism and service sectors. Metros like Orlando, Denver, Salt Lake City, and Phoenix are seeing the highest concentration of teen hires this summer, reflecting strong demand for seasonal workers in recreation and hospitality.¹²

Why summer work still matters

Trading schoolwork for a summer paycheck isn’t just a rite of passage for teens across the country – summer youth employment has been linked to higher graduation rates, lower justice system involvement, and better long-term wages.¹³

It also teaches young people soft skills that can’t be learned in a classroom — like managing responsibility, collaborating with coworkers, and making smart choices about saving or spending. Some financially-savvy teens are even starting investment portfolios before they graduate, researching stocks, and learning about long-term financial growth.

Read more: Teens take financial literacy into their own hands