Fewer openings, more competition: Teens struggle to find summer work

A new forecast suggests 2026 could be the weakest summer for teen hiring since the federal government began tracking the data in 1948.

WASHINGTON — Teens looking for a summer job to get a little money this year are facing one of the most challenging job markets in decades due to economic uncertainty, increased competition for entry-level positions and the growing use of automation.

A forecast from outplacement and consulting firm Challenger, Gray & Christmas suggests 2026 could be the weakest summer for teen hiring since the federal government began tracking the data in 1948. 

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Industries that have traditionally provided seasonal work for teenagers, including leisure, entertainment and hospitality, are under pressure due to higher operating costs, said Andy Challenger, chief revenue officer at the firm. 

“This year, inflation and high oil prices are hitting the handful of industries like leisure and entertainment, that extra pocket money spending during the summer, where teenagers tend to find most of the summer jobs,” Challenger said.

Teen job seekers are also competing against recent college graduates who have struggled to secure permanent positions and are increasingly pursuing temporary or seasonal work. At the same time, more retirement-age workers are remaining in or re-entering the workforce, often seeking part-time positions that were once more commonly filled by younger workers.

Technology is also reshaping the entry-level labor market. Businesses in fast food and retail have continued investing in self-service technology, reducing the number of positions available.

“A lot of companies like fast food restaurants and convenience stores have made investments over the last few years in self-service kiosks, checkouts, those typical jobs that would go to teenagers,” Challenger said.

Nicole Bachaud, a labor economist at ZipRecruiter, told CNN employers have largely maintained a cautious approach to hiring amid ongoing economic uncertainty.

“Stability’s been the name of the game for the last year and a half, maintaining their workforce, not really looking to expand, which has really been limiting entry-level opportunities,” Bachaud said.

However, Bachaud also notes that job growth has recently broadened to include more sectors that typically hire younger workers.

“That includes things like transportation and retail,” Bachaud said. “Despite high gas prices, we’re still seeing some signals that employers are increasing demand for employment in those areas.”

The emerging demand suggests additional opportunities may become available later in the summer, offering some encouragement for teenagers who have struggled to find work during the early hiring season.