Youth Summer Job Market Looks Bleak, Hiring Manager Survey Finds

As Americans face an unemployment rate of 8.1 percent, teens and college students looking for that traditional summer job are expected to be hard-pressed to find work, according to a second-annual survey of more than 1,000 hourly hiring managers.

The survey, commissioned by hourly job Web site SnagAJob.com and conducted by third-party research firm IPSOS Public Affairs, found that nearly half (46%) of hourly hiring managers with responsibility to recruit summer employees will not be recruiting this year.

While this finding is consistent with last year, teens and young adults can anticipate far fewer openings among businesses with available positions. Nearly one quarter of hiring mangers (23%) say that while they will be hiring, they will do so at levels lower than last year: Almost half (48%) of these managers intend to hire at rates between 10 and 50 percent below last year’s seasonal hiring levels. This figure has jumped 12 percentage points from 2008 (36%).

Not only will today’s youth be fighting for fewer job openings this summer, but they also will face competition from a variety of forces, hiring managers with positions available report:

• 73% of hiring managers expect more applications this summer compared to last summer. This is a significant increase from the 48% of hiring managers who anticipated more applications when comparing summer 2008 to summer 2007.
• 29% of hiring managers say that youths’ greatest competition for a seasonal position comes from workers who recently entered the workforce because of economic pressures (up 9 percentage points from last year). And as this group is a larger competitive factor, fewer hiring managers say that a youth’s biggest competition will come from another teen or college student like themselves – a drop of 7 percentage points from last year (61% last year, now 54%).
• Those who haven’t had a summer job before can expect to compete against returning workers. Hiring managers say that 65% of their seasonal staff will be returning workers, and 35% will be new employees.

“We’d be leading teens astray if we told them anything other than the fact that it will be a very tough summer for high school and college students to find seasonal jobs,” said Shawn Boyer, CEO of SnagAJob.com. “The reality is that this recession hasn’t hit rock bottom, and more and more people are out of work each month, which is going to increase pressure on the summer job market. That said, teens should not give up hope. Instead, they and their parents should go into the summer job hunt with their eyes wide open – casting the net very wide, applying as soon as possible and accepting a job for the experience as much as the paycheck.”

Any good news for teens on the hunt?

There are some silver linings for teens and college students who would like a job this year:

• One quarter (25%) of hiring managers say that they intend to hire at the same level as last year. And, 6% expect to hire more workers than they did last season.
• Similar to last year, a positive attitude remains the No. 1 thing hiring managers look for in a summer employee (36%). The ability to work the daily schedule a hiring manager needs is the second-most important attribute (27%). Previous experience in a given job or industry does not come into play until No. 3 (25%).
• While a combined 74% of hiring managers with available positions expect to complete their hiring by May, there should be some opportunities for jobs throughout the summer – 11% plan on making hires all season long because of anticipated turnover. That said, proactive job seekers can give themselves a leg up by starting the job hunt now: 22% of hiring managers expect to complete their hiring by April.
• Those who are able to find work can expect to earn a bit more than last year. Hiring managers expect to pay an average of $10.20 an hour, an increase of $0.40 over last year’s average. (Of note: The federal minimum wage, currently at $6.55, rises to $7.25 this July.)

Boyer recommends that those 16 to 18 years old be open to jobs that college students and older workers may not seek. For example, fast-food restaurants typically hire at 16 years old, and this is a segment that is doing well as Americans still want to go out to eat but are choosing more economical options.

If you’re a college student, healthcare support jobs should be considered, Boyer suggests. (Healthcare has added about 351,000 jobs in the last year, according to government statistics.) For example, there’s a growing opportunity for companionship jobs to seniors who would like to stay in their homes longer. Responsibilities include running errands and light-meal preparation.

More than half of teens and young adults will look for summer jobs

In a separate survey of more than 500 Americans ages 16-22, also commissioned by SnagAJob.com and conducted by IPSOS Public Affairs, youth were asked if they intended to look for a summer job this year. More than half (53%) do plan on looking for a job, 11 percent will not, and 10 percent will make their decision closer to summer. Meanwhile, one quarter (26%) will not be searching for a summer job because they already are employed.

Youth who will be on the summer job hunt say that their biggest competition will come from high school and college students like themselves (72%). Meanwhile, like some hiring managers suggested in their survey, some youth are concerned about competition from workers who have entered the workforce recently because of economic pressures. One-fifth of youth (20%) recognize this group as their biggest competition.

Multiple economic reasons at fault for the lack of summer jobs

When asked why they do NOT plan on hiring seasonal employees this year, the 46 percent of managers not hiring pointed to a variety of economic reasons, many of which are related. The most popular reasons not to hire this year are: current staff will take on any needed hours (37%); our business levels have been down recently (27%); and no budget to staff up, either with current staff or seasonal hires (25%). In addition to these top-three selections, hiring managers also said that they are currently under a hiring freeze (14%); they anticipate their hiring needs will be down by summer (12%); and their company has laid off workers and/or closed locations recently (9%). (Respondents were able to select all applicable answers.)

Survey Methodologies:

Hiring manager survey - This online survey was conducted by IPSOS Public Affairs, a third-party research firm, on behalf of SnagAJob.com between Feb. 20–25, 2009. Respondents included 1,043 hiring managers with responsibility for hiring summer, seasonal employees paid by the hour. The margin of error for the entire survey is 3.03% at a 95% confidence level. The margin of error for the sub-population of hiring managers who said they would be hiring summer employees (564 respondents) is 4.13%. Similarly, the margin of error for hiring managers who said they will not be hiring (479 respondents) is 4.48%. This is the second year that this survey was conducted.

Youth survey – This online survey was conducted by IPSOS Public Affairs, a third-party research firm, on behalf of SnagAJob.com between Feb. 25 – March 2, 2009. Respondents included 505 American youths between the ages of 16 and 22 years old. Data has been weighted to ensure the sample’s regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau. The margin of error for the entire survey is 4.36% at a 95% confidence level. The margin of error for the sub-population of youth who said they will be job hunting (265 respondents) is 6.02%.

About SnagAJob.com:

SnagAJob.com, America’s largest hourly job Web site, has helped connect hourly workers with quality full-time and part-time jobs in a wide range of industries since 2000. Headquartered in Richmond, Va., SnagAJob.com also provides both job seekers and employers with valued insights and a cutting-edge interface that are unique to hourly employment. That, combined with more than 135 million annual searches, about 15 million registered job seekers and approximately 100,000 active job postings, makes SnagAJob.com exceptionally qualified to share the experiences of the hourly workforce with the rest of the country. Current clients include DISH Network®, Verizon Wireless®, FedEx®, Boston Market®, Chick-fil-A®, Bed Bath & Beyond®, Michaels® and Jiffy Lube®. Learn more about the No. 1 source for hourly employment at SnagAJob.com.