everybody's working for the weekend (5.31.24)

What was your first "real-world" high school job? Mine was working the register and waiting tables at the local bagel spot, followed by a stint waiting tables at a French creperie and selling overpriced wedding gowns at a bridal boutique. I learned some of the most critical life skills there: dealing with disgruntled customers, managing your manager, the art of selling, financial literacy, and understanding how looking someone in the eyes and asking how they are doing can change the dynamics of nearly any conversation.

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It sounds like a new generation is about to (ideally) learn those same things. According to to recent data, while nearly 2 in 3 16- to 19-year-olds were working or actively looking for work in the '80s, teen labor force participation rapidly dropped in the 2000s. Now, we’re seeing a major swing back towards the teen job market. According to to Challenger, Gray & Christmas, Inc., Gen Z teens will gain 1.3 million jobs in May, June, and July 2024, due to consumer demand and teen desire to work this year. This also makes 2024 predicted to be the year with the highest number of summer jobs added since 2020, when teens took 2,192,000 new positions in the summer months.

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It makes sense; not only are these employment opportunities excellent ways to learn valuable skills they can apply to their futures, but also, it’s never been more expensive to be a teenager. Yes, they’ve also never been busier before—I don’t remember growing up knowing anyone with the amount of academic, athletic, family, passion-based, or other extracurricular commitments that kids these days seem to have—which can take away from interest in summer or part-time jobs. However, the ability to contribute to both family finances and their own consumption desires is a major driver for teens wanting jobs this summer. While parents may be a key source for teen income, summer jobs are a chance to cushion their finances and potentially impact their future mobility.

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According to Piper Sandler, teen spending is down, with American teens’ self-reported spending falling 6% between spring 2023 and 2024, to $2,263 (vs. last year’s $2,419). While this decline may reflect the fact that 9% of teens are worried about inflation, it doesn’t mean it is keeping them from splurging. For example, teens spent 8% more on beauty in spring 2024 than they did in 2023. Meanwhile, according to Bank of America, Gen Zs are planning international trips at higher rates than other generations and are planning to travel for longer periods.

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However, these findings are interesting when compared to a study Northwestern Mutual that highlighted Gen Z retirement super-savers, a growing class of consumers prioritizing saving for retirement. In fact, the study found that the average Gen Zer started saving for retirement at age 22, compared with millennials who started at 27, Gen Xers who started at 31, and baby boomers who started at 37. Key drivers include anxiety over conquering typical financial milestones (e.g., buying a home, paying off student debt) as well as retirement, as many feel Social Security won’t be an option for them when they’re of retiring age.

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While there are conflicting drivers that may be impacting their desire to get a summer job (e.g., extracurriculars, lack of interest, academic priorities), the interest many teens have for finding ways to become increasingly independent through skill development and financial stability provides an interesting avenue for brands to explore when it comes to providing utility and value. What are creative ways you can help these consumers connect the dots? It’s not about simply creating internships or finding ways to target potential young employees for your retail environments. How do you find creative ways to stoke their desire to mentally and financially grow through education-based opportunities, confidence-building support, and other tangible ways to show Gen Z you see them, understand their wants, needs, and desires, and support their dreams and hustle?