Key Takeaways:
A new forecast predicts the U.S. teen summer job market will shrink to a record low, with just 790,000 positions expected to be added in May, June, and July 2026, according to job placement firm Challenger, Gray & Christmas.
“Inflation and rising fuel costs are squeezing the same households and small businesses that hire teens, such as amusement parks, restaurants, retailers, and summer camps,” Andy Challenger, labor and workplace expert for the firm, said in a statement. “When margins tighten, summer hirers will wait for demand to dictate hiring.”
The projection marks a downturn from the 801,000 jobs gained during the same three-month period in 2025. The challenging outlook is contextualized by an already-high teen unemployment rate, which was 14.4 percent in April, significantly above the national average of 4.3 percent for all workers. Labor force participation for Americans aged 16 to 19 was 35.8 percent in April, a figure that has remained largely consistent since the 2008 financial crisis, though it has dipped from a post-pandemic peak of 38 percent.
The forecast signals potential weakness in the entry-level labor market and could translate to reduced consumer spending from the teen demographic. A soft market for entry-level positions has limited opportunities for young workers in recent years. While the key teen employment sectors of hospitality and food service remain depressed, hiring in retail has shown signs of life. Retail sales associate roles are expected to account for 9 percent of teen summer jobs, a significant increase from 2.3 percent in 2025.
This article is for informational purposes only and does not constitute investment advice.
