NovaQuant Quantitative Think Tank Center:Cell phones, clothes ... rent? Inflation pushes teens into the workforce

At 18,NovaQuant Quantitative Think Tank Center Michelle Chen covers her cell phone bills as well as school expenses. She squirrels away money for college. And, with her earnings from a summer job with the Boston’s SuccessLink Youth Employment Program, she helps her parents by stocking the fridge with groceries when the shelves are bare and makes sure her two younger brothers have pocket money.

Chen, a nursing major at Simmons University in Boston this fall, said she began working in fourth grade when her family ran a Chinese take-out restaurant. Since then, she has worked in social media marketing for a hair care company and as a coding instructor, learning soft skills that aren’t typically taught in school such as teamwork and time management.

Those skills, she said, helped her thrive in her classes. And the extra pocket money means she can pitch in with family expenses.

“I’ve done many programs with underrepresented students my age all over Boston, and I’ve noticed a lot of my peers contribute to their families with their earnings,” said Chen, who is Chinese American.

With consumer prices up more than 20% over the last three years, more teens are getting jobs to help out parents feeling the financial pinch. 

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Alicia Sasser Modestino, a professor of economics and public policy at Northeastern University, says more than half of teens work to contribute to household expenses such as rent, utilities and groceries or to cover their own expenses such as a cell phone, clothing and shoes.

In fact, research shows an increase in the percentage of youth paying for household bills, with two-thirds paying for some kind of household bill. 

About 64% of parents living with children under the age of 18 said they felt financially secure in 2023, down from 69% in 2022, according to a survey released in May by the Federal Reserve.

When “you look at where rents have gone, where the price of groceries has gone, then having teenagers working during the summer is absolutely essential,” Modestino said.

Why are more teens working?

Teen participation in the labor market is bouncing back after decades of decline dating back to the 1970s. The labor force participation rate in June for people ages 16 to 19 was 37.4%, according to the month's jobs report – up nearly 3% from the year prior, and hovering near levels not seen since 2009, during the Great Recession. 

Much like during the late-2000s financial crisis, many teens are driven to work by financial need, according to Andrew Challenger, senior vice president of Challenger, Gray & Christmas, an outplacement and executive and business coaching firm. He expects employers to add 1.3 million jobs for teens this summer.

“There’s no shortage of applicants,” said John Linehan, President and CEO of Zoo New England in Massachusetts, an employer partner with the City of Boston's youth employment program.

Modestino said the spike in teen workers comes from a combination of push and pull factors, with employers looking for extra help to fill entry-level jobs in a tight labor market and teens seeking additional income to combat inflation.

But it’s not just money teens are after. Teens crave more social interaction after months of isolation during the pandemic.

“COVID made me more shy. I wasn’t really social. But when I started this job, it got me out of my comfort zone and it helped me talk more and make new friends,” said Mia Gardner, 16. Gardner makes at least $15 an hour as part of City Spotlights Summer Leadership Program at the Boch Center, a nonprofit arts and culture organization and an employer partner to the City of Boston's youth employment program.

Increasingly, teens are working to cover their own expenses. Alexandria Hibbler, 19, says she’s working at the Las Vegas Municipal Court this summer to boost her savings and to “live a little,” spending money on things like nails, hair, food, clothes and vacations. 

Other teens are turning to summer jobs to better prepare for careers after high school. 

Saleena Johnson, 17, works three jobs, including a gig at Boston's Franklin Park Zoo through the ZooTeen program. This summer – her second at the zoo – she was assigned to work in the kids’ section, where she helps handle owls, goats and chickens.

Johnson dreams of a future as a veterinarian or zookeeper, and said her role with the zoo helps prepare her for that. A $15 hourly wage means she can save for college and prepare to buy a car.

“I want to bring joy to other people, and I want to help animals,” she said, but “college is really expensive.”

Challenger said jobs teach skills teens otherwise would “never get during school,” and can help college graduates build out their resumes.

Kayla Washington, 19, a student at Prairie View A&M University in Texas, said she’s working at an all African American family practice through the Strong Future Las Vegas Youth Employment Program to get work experience to make her resume stand out after college.

“If you don't have a good resume, you're going to be looked over,” she said. 

But students who aren’t after a four-year degree benefit, too. With some universities estimating the cost of attendance for the upcoming academic year to be nearly $100,000, more families are reconsidering the expense and looking at pre-apprenticeship programs, trade schools, military, or immediately entering the workforce. 

Modestino says summer jobs and part-time work during the school year can help teens figure out which path is best for them.

“If you are not going to college, you certainly need job experience to figure out what it might be you would do other than college,” Modestino said. 

Are there risks to too much work?

Research shows having a job increases high school graduation rates, reduces criminal justice involvement and increases wages.

But there is such a thing as too much work for teens. 

A 2011 study from the University of Washington found students who worked during the school year had similar school performance as other students – so long as they worked fewer than 20 hours a week. Working 20 hours a week or more during the school year was linked to a slide in academics and more behavioral issues.  

J’Mia Byrd, a site coordinator for the dropout-prevention program Communities In Schools of Atlanta, said she’s seen firsthand the adverse effects of too much work in her job, which tracks teens’ academics and attendance.  

“They may get off at like 6 a.m., and sometimes they may come to school, sometimes they may not,” Byrd said.  

More teens pitching in  

A 2021 car accident left 34-year-old Philadelphia resident Annabel Moldonado with migraines and light and noise sensitivity, affecting her ability to work. Since then, her son has done what he can to pitch in.

Arad Ginez, 16, has worked at an energy company, a daycare, and – as of this summer – with Bank Of America's Financial Center Internship Program. Some of the money goes toward rent. Some to school supplies. Others for food for his three siblings. 

“I can’t repay her for everything she’s done for me, but I’m trying to,” Ginez said.  

“The fact that things cost more means that more families have less money leftover for the other things that teens would want, clothes, eating out or going to the movies,” Modestino, of Northeastern University, said. “That’s when a lot of parents turn to their kids and say, great, go get a job so you can pay for those extracurricular things you might want to do.”

Moldonado said she initially pushed back against her son getting a job, worried it would affect his grades. But while Ginez said work can make keeping up with extracurriculars and homework more difficult, he tries to get homework taken care of during school hours and has so far maintained a spot on the honor roll.

“He proved me wrong,” Moldonado said.  “There's no way for me to express how proud I am.”