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Teens stand in the labor crunch gap

Pedestrians walk past a sign inviting people to apply for employment at a shop in Boston's fashionable Newbury Street neighborhood, Monday. As the U.S. economy bounds back with unexpected speed, high school-age kids are filling jobs that older workers can't — or won't.
Businesses hire more teenagers

WASHINGTON — The owners of restaurants, amusement parks and retail shops, many of them desperate for workers, are sounding an unusual note of gratitude this summer:

Thank goodness for teenagers.

As the U.S. economy bounds back with unexpected speed from the pandemic recession and customer demand intensifies, high school-age kids are filling jobs that older workers can’t — or won’t.

The result is that teens who are willing to bus restaurant tables or serve as water-park lifeguards are commanding $15, $17 or more an hour, plus bonuses in some instances or money to help pay for school classes. The trend marks a shift from the period after the 2007-2009 Great Recession, when older workers often took such jobs and teens were sometimes squeezed out.

The time, an acute labor shortage, especially at restaurants, tourism and entertainment businesses, has made teenage workers highly popular again.

“We’re very thankful they are here,’’ says Akash Kapoor, CEO of Curry Up Now. Fifty teenagers are working this summer at his five San Francisco-area Indian street food restaurants, up from only about a dozen last year. “We may not be open if they weren’t here. We need bodies.”

The proportion of Americans ages 16-19 who are working is higher than it’s been in years: In May, 33.2% of them had jobs, the highest such percentage since 2008. Though the figure dipped to 31.9% in June, the Labor Department reported Friday, that is still higher than it was before the pandemic devastated the economy last spring.

At the Cattivella Italian restaurant in Denver, for instance, Harry Hittle, 16, is earning up to $22.50 an hour, including tips, from his job clearing restaurant tables. He’s used the windfall to buy gas and insurance for his car and has splurged on a road bike and an electric guitar.

“There’s never been a better time to apply for a job if you’re a teen,” says Mathieu Stevenson, CEO of Snagajob, an online job site for hourly work.

Consider the findings of Neeta Fogg, Paul Harrington and Ishwar Khatiwada, researchers at Drexel University’s Center for Labor Markets and Policy who issue an annual forecast for the teenage summer job market. This year, they predict, will be the best summer for teenage lifeguards, ice cream scoopers and sales clerks since 2008; 31.5% of 16- to 19-year-olds will have jobs.

Teenage employment had been on a long slide, leading many analysts to lament the end of summertime jobs that gave teens work experience and a chance to mingle with colleagues and customers from varying backgrounds.

In August 1978, 50% of teenagers were working, according to the U.S. Labor Department. Their employment rate hasn’t been that high since. The figure began a long slide in 2000 and fell especially steeply during the Great Recession. The eruption of coronavirus produced a new low: Only 26.3% of teens had jobs last summer, according to the Drexel researchers.

This summer, things are rather different. After collapsing last spring, the economy has rebounded much faster than expected. Restaurants, bars, retail shops and amusement parks have been overwhelmed by pent-up demand from consumers who had mostly hunkered down for a year or more.

Now, those businesses need employees to handle the influx and are scrambling to find enough.

So businesses are offering signing bonuses and whatever else they can to hire teens in a hurry.

Boomers Parks has raised pay at the eight amusement parks it owns and is offering bonuses of up to $50 a week for some teen workers who stay through the summer, CEO Tim Murphy said. With fewer people seemingly willing to take the jobs, Murphy said, competition for workers is fierce.

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