Report shows how inflation is forcing more teens to enter the workforce to help families pay bills

Teenagers working part-time to make some extra money for themselves is not a new thing. But what if it becomes a necessity, where they have to provide for household expenses and also take care of their needs? Something similar is happening in the current economy, highlighting how inflation is affecting teenagers in the US. The job report of June showed that the labor force participation rate for people between the ages of 16 and 19 has risen about 3% in the last year. In June 2023, the percentage was at 37.4%, according to MOTHERLY. 

Alicia Sasser Modestino, a professor of economics and public policy at Northeastern University, told USA Today that more than half of teenagers are currently working to provide for household expenses like rent, utilities and groceries or are covering their own expenses using that money. In a 2023 survey by the Federal Reserve, about 64% of parents shared they felt financially secure living with their children under 18 years old, which is 5% less than in 2022. This survey was conducted among 11,000 adults and was focused on financial well-being, income, employment, expenses, banking and credit, housing, higher education and student loans, and retirement and investments.

Moreover, teen participation in the workforce is on the rise after decades of decline since the 1970s. It is close to 40% this year, which is hovering near levels not seen since 2009 during the Great Recession. Modestino shared that the rise is due to push and pull factors. Employers are looking for people to do entry-level jobs and teens want extra income to combat inflation.

Andrew Challenger, senior vice president of Challenger, Gray & Christmas, an outplacement and executive and business coaching firm, said that many teenagers are working to provide for their financial needs and that employers are expected to add 1.3 million jobs for teens this summer. John Linehan, president and CEO of Zoo New England in Massachusetts, who collaborates with Boston's youth employment program, told USA Today that there is no shortage of applicants.

However, when one thinks about the risk of working as a teenager, there is not much to worry about. A 2011 study from the University of Washington discovered that students who worked during their school years had similar school performance as other children as long as they worked less than 20 hours. But, when students worked 20 hours or more than that, they saw a slide in academics and more behavioral issues. On the positive side, having a job also saw an increase in high school graduation rates, a reduction in criminal justice involvement and an increase in salaries, according to USA Today. 

In another story, a TikTok content creator, Krystal, posted a video on how inflation is eliminating cheaper options. She spoke about how there are no cheaper options to buy from and how the economic situation has changed in the last few years. She started by saying, "Have you noticed that the prices of cheaper things are rising a lot faster than the prices of expensive things?" She gave an example of two pasta places she used to visit. One was non-expensive and the other was an expensive place. Interestingly, she said that the non-expensive place used to charge $12-$15 for entrees, and the expensive place charged about $30. But recently, the non-expensive place has increased the price to $22-$24, which is barely less than the expensive place.

She then gave the example of the mascara she used and how she could buy it for $6.49 at a sale price. She expressed that if she spent a bit more, she could get a product from expensive brands like Sephora that are of better quality and would last longer. She concluded that cheap options don't exist anymore and the expensive option is actually the option that makes more sense.