Small businesses seek teenage employees amidst intense summer hiring competition

With the summer hiring market heating up, small and seasonal businesses are facing a challenge in recruiting teenage workers to fill roles.

According to outplacement firm Challenger Gray, teens are expected to gain 1.1 million jobs in 2023, which is slightly lower than the previous year and the lowest forecast since 2011. While the firm reports that teens are returning to pre-pandemic employment levels, it warns that many teens willing to work are likely already part of the workforce.

In June, the unemployment rate for teens aged 16 to 19 increased slightly to 11%, as per the June jobs report from the Bureau of Labor Statistics. Additionally, the labor participation rate fell to 36.3% from 42.9% in June 2022.

This situation poses a challenge for businesses like Grotto Pizza, which heavily rely on teen workers, according to hiring manager Glenn Byrum.

Teens make up less than a third of the 1,100 workers across Grotto’s 20 locations in Delaware and Maryland. Byrum acknowledges that hiring teens is an ongoing process and highlights their preference for job flexibility, competitive pay, and a favorable work environment.

Grotto often offers teen workers above minimum wage and provides incentives for them to move between locations as per seasonal demand.

Lexi Mathis, a 16-year-old Grotto employee, appreciates the company’s flexibility with her schedule as she works at a beach location for the summer. She also mentions the positive impact of a pay raise, helping her cover commuting expenses amidst inflation.

Hiring and labor availability have become persistent challenges for small business owners, particularly in the post-pandemic landscape. The dynamics of worker availability and needs have shifted, making it difficult for owners to find skilled and unskilled workers to fill positions.

The restaurant sector, in particular, has been heavily affected by the labor shortage. The National Restaurant Association projects the addition of 500,000 jobs by the end of the year but reports a lack of job seekers, resulting in increased competition for workers.

At Famous Toastery in Davidson, North Carolina, Makiah Grindstaff, a high school senior, shares her experience of working during the school year and summers. She values the opportunity to save money for various personal goals and mentions the potential to earn up to $25 per hour depending on her role and the day of the week.

The ability to have cash on hand for shopping, dining, and personal expenses is important to Grindstaff and her friends.