KEY TAKEAWAYS:

• Data from the state tells us that 16-to-19 year olds in Michigan are finding it harder to land a summer job compared to 2023 – from around 17% to about 13.74%
• More than a third of teenagers eligible for work are employed, and while these numbers tell a part of the story, experts say the challenges facing young workers today are rooted in broader economic trends.
• The combination of artificial intelligence replacing entry-level jobs and increased adult unemployment has made the search for a summer job more difficult for teens.

Summer is in full swing and many Michigan teens are busy clocking in at their summer jobs. But unlike generations before them, young people today are navigating a tough labor market – one shaped by Artificial Intelligence, economic uncertainty and rising unemployment. 

Marco Villa is 16 years old and works at Tommy Hilfiger in West Michigan, a job he said took him six months to find. He estimates he filled out 30-40 applications before getting hired.

“The main issue was like, I would just apply to different places and never hear back,” Villa said.

For many teenagers looking for work, the job application process has become one of the biggest barriers. From some employers, Villa was met with miscommunication and disorganization, and from others he wouldn’t hear back at all. He said he’s not alone in this experience.

“I've heard the same stories from my friends where they like, they applied to thousands [of] places and they just can't get [a] job anywhere. Obviously not thousands, but you know, you get the idea. It's very hard to get a job as a minor just anywhere or even just getting a job in general,” Villa said.

Courtesy

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Betsey Stevenson

Betsey Stevenson is a professor of economics and public policy at the University of Michigan.

Data from the state tells us that 16-to-19 year olds in Michigan are finding it harder to land a summer job compared to three years ago – from around 17% to about 13.74% in 2023. 

“The unemployment rate is the share of teens who are available for work and actively looking for work,” said University of Michigan professor of public policy and economics, Betsey Stevenson.

“It's actually a hopeful sign when we see a high number, because that means a lot of teens are trying to find work.”

Right now, just over a third of teenagers eligible for work are employed, and while these numbers tell a part of the story, Stevenson said the challenges facing young workers today are rooted in broader economic trends.

A cooling economy leaves fewer openings for young workers

Michigan has a higher unemployment rate for adults which is around 5.1 percent. This is almost double the unemployment rate of states like Maine and Wisconsin.

“I mean, if you have a high adult unemployment rate, you're going to have older people competing with teens for the exact same job,” Stevenson said.

That, coupled with a decline in entry level jobs, is making it harder for everyone to get a job.

“A lot of that is being replaced by artificial intelligence as well as companies just cutting corners. And so, you put that all together and it's certainly changing the shape of the labor market that teens are facing,” she said.

The most common jobs for teens in Michigan are in retail, fast food and counter service, stocking, and customer service.

When the economy is healthier, people go out to eat, adults take vacations and families need a babysitter – jobs that are often filled by teen services.

16-year old Villa has experienced this first hand after his mom struggled to find work last year.

“My mom, even though she’s very qualified and has lots of experience, she spent lots of time between jobs, not having a job when she was looking,” he said.

Villa blames the tough labor market.

“Since, like, so many adults are trying to get second jobs right now, people with more experience are going to probably get hired over some high schooler that's never had a job before,” Villa said.

Too young to hire?

For teenagers younger than 16-years old the search for work can be even tougher than their older counterparts.

In Michigan, 14- and 15-year-olds are required to obtain a work permit from the state before starting a job. The process requires a promise of employment, a parent's signature, and proof of age.

Leonardo Arvizu is a 14-year-old working in Holland and relates to this struggle.

“There weren't a lot of places hiring and especially when you're under 16, it's just a lot more limitations. So it was a little tough,” Arvizio said.

Some state legislators want to make it easier for minors to get jobs. Recently, the Michigan House of Representatives passed a bill that would no longer require minors to acquire a work permit. Others worry that this might put an already vulnerable group at risk.

Research on the benefits of youth work permits is mixed. A non-peer reviewed study from 2024 showed that states that had eliminated youth work permit requirements experienced fewer youth labor violations. A separate study from 2010 demonstrated that work permits don't necessarily prevent work violations from taking place, but can help inform young people about labor laws and their legal rights.

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The state requires employers to pay teenagers under 17 years old a minimum of $10.61 per hour.

Understanding those rights is something 16-year old Jaela Corporan thinks about often.
Since January she’s been working up to 24 hours a week at a Chick-fil-A in Grand Rapids.

“If you're uncomfortable with anything, you have the right to just kind of say no to things and let them know if it's making you uncomfortable,” Corporan said.

She said she was hired back in January on the spot during a staffing shortage. As a minor, her employer is required to pay her at least $10.61 per hour compared to the state's minimum wage of $13.73 per hour.

Working at Chick-fil-A, Corporan said she get paid $10.75 per hour and takes home between $250 and $500 dollars per paycheck.

"I ...do like to help my mom around with groceries or if we're out I just like to pay for dinner...or ...like basic necessities," she said. "Even when I'm just hanging out with friends to just have money so we could go shopping hang out with each other or eat."

In the fall, when's she's not in school Corporan plans to keep working. She's hoping to set aside enough money to make the transition to college a little easier when the time comes.