Despite a General Slowdown in Hiring, Teens Are Still Able to Find Summer Jobs

As the broader labor market shows signs of cooling, teen workers continue to find steady opportunities heading into summer 2025. New data from Gusto reveals that hiring rates for teens remain consistent with previous years, with strong wage growth and solid employment gains. Despite economic headwinds, small businesses—particularly in recreation, food service, and hospitality—are still turning to young workers to meet seasonal demand. This report explores the latest trends in teen hiring, wages, and employment growth across the country.

Key Findings

• Teen Hiring Remains Strong Despite Overall Slowdown: Even though the broader labor market is cooling, teen hiring for summer jobs is holding steady. In May 2025, teens (ages 15–19) made up 19.0% of all new hires—consistent with levels seen in previous years (e.g., 19.1% in April 2024 and 18.3% in April 2023).

• Teen Wages Are Rising Faster Than Inflation: Teen pay is increasing even as overall wage growth slows. As of May 2025, the average wage for teens at small businesses was $14.82/hour—a 3.4% increase from the year before, outpacing the 2.2% rise in consumer prices.

• Employment Growth Among Teens Is Still High, Though Easing: Employment for 15–19-year-olds grew by 11.8% in May 2025. While that’s down slightly from 14.3% in May 2024, it still signals a strong teen labor market—especially compared to the slowdown in jobs for older, professional workers.

Teen Hiring Remains Strong Despite Overall Slowdown

The share of teen hires typically rises sharply in late spring and early summer, reflecting the influx of seasonal and part-time jobs available to teenagers during school breaks. Workers between the ages of 15 and 19 have made up about 20% of all June hires over the past three years compared to about 10% of all hires during the fall and spring months when teens tend to be in school. 

Summer 2025 is on track to be consistent with historical hiring rates. May data suggest that this year is trending in line with normal teen hiring rates from the past few years: As of May 2025, 19.0% of all new hires were between the ages of 15 and 19, compared to 19.1% in April 2024 and 18.3% in April 2023. 

Teen Wages Are Rising Faster Than Inflation

In 2023 and 2024, as overall wage growth slowed across the economy, teens continued to see steadily rising pay. Businesses paid more for teen workers in 2024 than they did in 2023, even as new hire pay overall fell across the economy. As of May 2025, the national average wage for teens at small businesses was $14.82/hr. This was an increase of 3.4% from May 2024, when the national average wage was $14.47/hr. Teen wages increased in real terms, exceeding the 2.2% increase in prices over the same period.

The relative strength of pay gains for newly hired teens reflects continued hiring challenges in sectors of the economy that tend to employ seasonal workers – notably recreation, food service, and leisure and hospitality. Even as the job market for professional workers – who tend to be older, since they require higher levels of education – has slowed, the job market remains tight in many of the service sectors that rely on teen workers.

Employment Growth Among Teens Is Still High, Though Easing

In May 2025, employment among 15-19 year old workers grew by 11.8%, slightly down from the 14.3% growth in May 2024 and from 14.4% in May 2023. While the summer peak has been trending lower since 2021 – the peak of the post-pandemic recreation boom when sectors across the economy were struggling to find workers – the job market for teens remains strong. This summer, the slowing broader labor market may push some older workers to consider seasonal or part-time roles that teens may have filled over the past few years.

Top Cities for Teen Jobs This Summer

Teen hiring is particularly strong in cities with thriving tourism and service sectors. According to Gusto data, metros like Orlando, Denver, Salt Lake City, and Phoenix are seeing the highest concentration of teen hires this summer—reflecting their strong demand for seasonal workers in recreation and hospitality. This aligns with national data from the Bureau of Labor Statistics (BLS), which shows that leisure and hospitality accounted for nearly 30% of teen employment in 2024. These cities also have younger median populations and high rates of labor force participation among teens, according to Brookings, further driving their teen hiring momentum.

Summer Jobs Still Strong in Leisure, Food, and Hospitality

Recreation, food service, and hospitality are once again the leading industries for teen employment in 2025. Gusto data shows continued wage growth in these sectors—teen wages rose 3.4% year-over-year to $14.82/hour in May 2025, outpacing inflation. Nationally, the BLS reports that over 1 in 5 employed teens work in food preparation and serving-related occupations, and these sectors continue to struggle with labor shortages. Employers are increasingly reliant on teens to meet seasonal demand, especially as older workers shift away from part-time roles. This dynamic keeps demand—and wages—strong for younger workers in frontline service jobs.

*Data presented by Gusto in this report are derived from Gusto platform data. The data presented in this report are unweighted. Gusto processes payroll, benefits and HR for over 400,000 businesses based in the United States.