Teen Summer Employment Outlook 2010

by Anne Arthur - anne.arthur@state.mn.us
March 2010

Teens remain somewhat optimistic about their future careers despite the economic downturn according to a national poll conducted by Junior Achievement and the ING Foundation. In fact, 90 percent of the teens polled are confident they will eventually find their ideal job, and 84 percent said they would forgo the perfect job for an opportunity to make a difference in the world. Yet despite the long-term enthusiasm, 74 percent of the teens expressed being “as worried” or “more worried” about their future job prospects compared to a year ago. And of those teens identified as being “more worried,” 64 percent said they were anxious about the economy, and 55 percent cited the unemployment rate as the most troubling issue.[1}

Based on the national context, their anxiety is reasonable. In January 2010 the Bureau of Labor Statistics (BLS) announced that the national unemployment rate fell from 10 to 9.7 percent. However, the national unemployment rate for teens — at 26.4 percent — showed little change.[2] Additionally, last year’s national statistics, as well as newer indicators, are bleak:

In 2009 the proportion of young people who were employed in July — the month that captures the summer employment peak for teens — was 51.4 percent, down 4.6 percentage points from July 2008. Further, this is the lowest July rate on record since this statistic was first collected in 1948.

Similarly, the labor force participation rate for youth (the proportion of youth who are working or seeking work) was 63 percent in July 2009. This represents a 2.1 percentage decrease from July 2008, and it is the lowest youth participation rate for any July since 1955.

Teens are facing a higher degree of competition even when applying for relatively low-skill, low-wage positions as they are increasingly competing with displaced workers and with recent college graduates. Even hiring of college grads will remain near its lowest level in decades, according to a national survey conducted by Michigan State University.

Potential good news at the national level, however, is that some sectors showed increased employment in January 2010. For instance, retail trade employment rose by 42,000 jobs in January. More specifically, January saw job gains in food stores (14,000), clothing stores (13,000), and general merchandise retailers (10,000).  This is good news for teens, as these sectors tend to hire teens over the summer months.

Teens and Employment in Minnesota

In Minnesota the overall unemployment rate was 7.3 percent as of December 2009, which, while slightly better than the national average, is nonetheless historically high for Minnesota.

As Table 1 shows, the workforce participation rate for Minnesota teens (age 16-19) has, with a few small exceptions, steadily declined over the last 10 years. Although in 1999 the teen participation rate was 68 percent, the rate for 2009 dropped to 53.6 percent. And while teen workforce participation declined, teen unemployment skyrocketed to 21.1 percent, significantly higher than any other unemployment rate in the last 10 years and well above the 2008 rate.

2010 Teen Employment Outlook

The Minnesota data from the summer of 2008 (as represented by third quarter data, which best captures the peak of teen employment) are the most recent comprehensive data that can be used as an indicator for teen employment in Minnesota in the summer of 2010. A total of 113,454 teens (age 14 to 18) worked in Minnesota’s economy and were concentrated in certain industries, particularly those with relatively low-skill requirements and low pay such as food service and retail positions. The average earnings for teens across all sectors were $638 per month during third quarter 2008.

Table 2 shows total teen employment for the summer of 2008 as well as sector-specific employment numbers and the average monthly earnings for each sector. The numbers and earnings for the summer of 2007 are included for comparison. The striking, although not surprising, finding is that the number of teens employed, as well as their earnings, declined for every sector, although for most sectors the earnings decline was small.

Two sectors where the teen share of the overall workforce remained near constant between the summers of 2007 and 2008 are the arts, entertainment, and recreation sector, 12.1 percent, and the health care and social assistance sector, 0.02 percent. Displaced adults may be less likely to seek jobs in the arts, entertainment, and recreation sector because of its relative low pay. Moreover, many employers in that sector have a youth clientele and therefore may look specifically for teen workers. And while teens held their percentage in the health care and social assistance sector, their numbers there are small.

Based on the trends shown in Table 1 and the more detailed comparison between 2007 and 2008 summer teen employment, it’s likely that Minnesota teens who plan to seek employment in the summer of 2010 will face a very competitive market.

As Table 3 shows, however, the employment forecast for Minnesota’s economy, while not wildly optimistic, is nonetheless somewhat encouraging. Table 3 highlights the industry sectors in which youth work in the highest numbers.

The good news for teens is that while some sectors will see job gains and others will see job losses, overall, Minnesota should see a net gain of 10,677 jobs by the end of 2010. The downside, however, is that this net gain represents only a 0.4 percent change to the current employment situation, and this 0.4 percent job growth will be spread across the entire workforce. In other words, these positions are not “teen specific.”

What’s a Job-Seeking Teen to Do?

First, as a job-seeking teen, remember that you are a person, not a statistic. Despite unemployment rates and this rather bleak forecast, there are jobs available if you are willing to be persistent and resourceful. The following resources can help you explore your options, enhance your networking skills, create an outstanding resume, and ensure that you are presenting yourself in a professional manner to potential employers.

iSeek: iSeek has an abundance of information and resources to help you plan your education, explore careers, and find the right job. You can sign up for e-mail newsletters, fill out online assessments, get information specific to certain job-seeking populations, and explore links to additional information. You will also find a link to MnCareers, an annual publication that offers easy-to-understand education and career information in printed format for students and job seekers. Visit iSeek at www.iseek.org .

The Department of Employment and Economic Development (DEED): DEED’s Web site has a tab for job seekers titled “Find a Job.” Here you will find detailed information on how to search for a job, how to write a resume, and how to prepare for an interview. Additionally, a “Zone for Youth” connects you to information designed specifically for teens seeking employment. You will also find information about the 49 WorkForce Centers located statewide. These WorkForce Centers have knowledgeable staff who help job seekers explore and plan careers. Best of all, the services are free. Go to www.PositivelyMinnesota.com .

MinnesotaWorks.net: This job bank is an excellent source of job listings in Minnesota. It includes jobs that are permanent, temporary, full time, and part time as well as internships, apprenticeships, and volunteer opportunities. Go to www.MinnesotaWorks.net .

Although not specific to Minnesota, another useful online resource for information and jobs targeted to teens can be found at jobsearch.about.com/cs/justforstudents/a/teenjobs.htm .

[1]“Teens Value ‘Doing Good’ More Than Making Money,” www.ing-usa.com/us/aboutING/Newsroom/pressreleases/1066344.html , Jan. 26, 2010.  (The Junior Achievement-ING Kids and Careers Poll, conducted by Opinion Research Corporation in December 2009, surveyed 750 U.S. boys and girls ages 12-17 by telephone. Margin of error is +/- 3.4 percent.

[2]BLS Employment Situation Summary: “The Employment Situation –January 2010,” www.bls.gov/news.release/archives/empsit_02052010.pdf  .

 
Top