Summer job outlook sunnier for teens as market mends

Dwane Holloman plans to dedicate his summer to an American rite of passage: a teen job. The 17-year-old will operate amusement park rides at Hersheypark in Pennsylvania, near his home.
More of his peers could share his luck this year, as short-term job prospects improve alongside the broader labor market, which has added more than 200,000 jobs in each of the past four months.
Teen hiring posted the biggest gain in eight years this May, not counting for seasonal adjustments. If the nascent job recovery retains steam through the summer, it could bolster wallets and resumes for U.S. youth.
“There’s pent-up demand in the economy for the teen worker,” said Rick Cobb, executive vice president at employment consulting firm Challenger, Gray & Christmas Inc. in Chicago. Though teen hiring increased in May, he said June through mid-July will give the full picture.
People aged 16-19 last month gained the most jobs for May since 2006, based on Bureau of Labor Statistics data not adjusted for seasonal fluctuations. The group added 217,000 jobs, compared with 215,000 the prior year.
While the gain suggests early strength in the summer job market, the uptick in May hiring last year gave way to a subpar June and July. The total number of teens who landed summer work dropped by 3 percent from 2012, based on a Challenger, Gray & Christmas analysis.
Cobb said he expects hiring this year to be in line with 2013 levels. Last year, teens gained about 1.36 million summer jobs, up from 960,000 in 2010, based on the analysis.
Late spring job gains aren’t the only indication that the labor market for teens is healthier. The jobless rate for 16- to 19-year-olds dropped to 19.2 percent last month from 24.1 percent a year earlier on a seasonally adjusted basis.
Holloman has plans for his summer wages. He’ll use what he earns operating kiddie rides and roller coasters at Hersheypark to pay for car insurance and gas, he said.
“I need to work because gas definitely costs money,” said Holloman, who had the same job last summer and said he’s also benefiting from the work experience. “It helps you learn how to communicate with co-workers and get along with other people.” •

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