An economist explains why a job is becoming increasingly appealing to more teens.

• Last month, approximately 5.9 million 16- to 19-year-olds were employed, as per data from the Bureau of Labor Statistics.
• That figure marked the highest teen employment in June since 2007.
• This is due to a robust job market, increasing salaries, and high tuition expenses, according to economists.
• The economy's condition will largely determine the future of teen employment, but external factors such as automation could pose a threat to jobs in the food service and retail sectors.

Teen summer jobs are back.

In June 2021, the Bureau of Labor Statistics reported that over 5.7 million 16- to 19-year-olds were part of the labor market, which is the highest teen employment rate since 2007. Despite this being lower than the more than 8 million teen workers recorded in the late '70s, the figures indicate that teen employment has been steadily increasing over the past decade.

According to economists, the hot labor market with attractive wages has drawn more teens to the workforce, benefiting them with valuable experience that can aid their employment and earnings in the future.

Teen employment is expected to remain stable as long as the economy remains strong.

According to Brad Hershbein, senior economist and deputy director of research at the W.E. Upjohn Institute for Employment Research, young people are increasingly finding it more compelling to work because the amount of money they can earn has increased.

"A strong market has made it a compelling choice, even without minimum wage increases," Hershbein stated.

How college goals have influenced teen workers

Although recent gains have improved the employment-population ratio among 16- to 19-year-olds, it remains lower compared to historical records set decades ago. In the '50s and '70s, approximately half of the teen population had jobs. Currently, around one-third of teenagers are employed, according to BLS data.

The broad decline in the economy in the 1980s was largely attributed to the push for college education during that time. The 1983 National Commission on Excellence in Education report, titled "A Nation at Risk," highlighted the United States' falling behind in education and served as a call to action for educators.

"According to Hershbein, there was a significant focus on keeping people in school for longer periods, which led to an increase in after-school programs, tutoring, and activities. As a result, school days became longer, putting pressure on teens' ability to work."

In the 2000s, the college mentality became increasingly prevalent, according to Hershbein. During this time, the number of teenagers in the workforce decreased from 7 million to 4.2 million between 2000 and 2011.

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Teen employment has been steadily increasing since hitting a low, according to economists. This is partly due to the same factor that led many teens to leave the labor force: college.

According to Citi global economist Rob Sockin, young people are being influenced by their peers' struggles with student debt to delay college or take on a job while in school.

Sockin stated that the high cost of education and the difficulties faced by some individuals in this environment with a high cost of living and high inflation may be reflected in the statement.

Teens are increasingly drawn to jobs in food service and retail due to rising wages, with the average hourly pay for a teen being $17 an hour, according to ZipRecruiter data. In some cities, such as New York, the average hourly pay for teens is even higher at $19, the data shows.

Young workers 'tend to be the first ones let go'

During the summer months, many teens work part-time jobs, which is a seasonal trend in youth employment, according to KPMG senior economist Matthew Nestler, who spoke to CNBC.

According to Sockin, service jobs, including those traditionally filled by teens such as grocery store clerks and fast-food cashiers, are being replaced by machines.

The direction of teen employment is heavily influenced by the state of the economy, according to economists. A combination of factors, including a tight labor market, rising wages, high education costs, and reduced immigration, could lead to continued higher youth employment, as predicted by Nestler.

The labor market has experienced a significant decline from 2022, and economists predict it will reach a "tentative plateau."

"According to Nestler, historically, when the labor market becomes more relaxed, youth employment is negatively affected. Since young people aged 16 to 19 have the least experience and formal labor market skills, they are often the first to be let go."