Teen Employment 12-22-25

Teen employment in the U.S. in 2025 saw a dip compared to 2024, with fewer young people working during the summer peak (July), though this followed a strong post-pandemic period; sectors like leisure, hospitality, and retail remained top employers, but rising unemployment rates, particularly in November, and increased competition from older workers and automation signaled a tightening job market, especially for younger teens.  

Key Trends & Data (2025)

Summer Dip: The employment-to-population ratio for 16-24 year olds fell to 53.1% in July 2025, down from 54.5% in July 2024.

Rising Unemployment: The youth unemployment rate increased in July 2025 (10.8%) and surged further in November (16.3%).

Sector Dominance: Leisure & Hospitality and Retail remained the largest employers of youth.

Vulnerability: Younger teens (16-17) saw a significant drop in workforce numbers by November 2025. 

Contributing Factors

Slowing Economy: A generally softening labor market meant older workers filled some seasonal roles, and businesses were more cautious.

Competition: Teens faced increased competition from older workers and early signs of job displacement due to AI, according to Longbridge.

Automation: AI and kiosks threatened roles like cashiers, impacting future teen job prospects. 

Common Teen Jobs

Retail sales, food service, recreation (lifeguards, camp counselors), and administrative roles were popular. 

Outlook
While the long-term trend showed declines from the post-pandemic boom, the job market for teens remained a dynamic area, with ongoing shifts due to economic conditions and technological advancements. 

In 2025, the U.S. teen labor market has experienced increased volatility characterized by rising unemployment rates and a structural shift toward service-oriented and seasonal roles. 

Current Statistics (2025)

Unemployment Surge: The teenage unemployment rate (ages 16–19) shot up to 16.3% in November 2025, the highest level since August 2020.

Summer Peak: During the peak summer month of July 2025, the youth (ages 16–24) unemployment rate was 10.8%, up from 9.8% in 2024.

Labor Participation: Approximately 53.1% of youth were employed in July 2025, a slight decline from 54.5% in the previous year.

Demographic Declines: The sharpest drops in employment have been among younger teens (ages 16–17), with their numbers falling by 179,000 in late 2025. 

Key Employment Trends

Industry Concentration: Leisure and hospitality remain the dominant employers, with 25% (5.4 million) of employed youth working in this sector as of July 2025.

Rising Wages: Despite the cooling market, teen wages at small businesses rose to an average of $14.82/hour in May 2025, a 3.4% increase that outpaced inflation.

Impact of AI: Automation is increasingly displacing traditional entry-level roles like cashiers; AI-powered kiosks have contributed to a significant decline in these positions for teens.

Increased Competition: Teens are facing stiffer competition from older workers who are staying in the workforce longer or taking seasonal roles due to broader economic cooling. 

Top Jobs for Teens in 2025

Industry                             Popular Roles

Leisure & Hospitality         Lifeguard, Camp Counselor, Movie Theater Attendant

Food & Beverage              Server, Fast Food Worker, Grocery Associate

Retail & Personal Service Sales Associate, Babysitter, Dog Walker

Logistics / Manual             Warehouse Worker

https://www.google.com/search?q=teen+employment+in+us+2025

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