Help Wanted--Teens to Fill Summer Jobs
Thursday, June 12, 2008SUSIE GHARIB: If you have a teenager who wants a summer job, he or she may be in luck. Despite the dismal employment picture for adults, the outlook for teens isn't too bad this year. But as Erika Miller explains, analysts are concerned about the summer prospects for retailers who cater to those teens.
ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: As the school year ends, many teens are looking for summer jobs. Some may be worried about tough competition this year given the slowdown in the economy. But Bernadette Kenny, chief career expert at staffing firm Adecco North America, is fairly upbeat.
BERNADETTE KENNY, CHIEF CAREER OFFICER, ADECCO GROUP: I think the job market is pretty good. I think we shouldn't be scared by the economic press. There has always been a good job market for teenagers willing to work and there continues to be.
MILLER: Competition is likely to be tight in some areas like retail. However, in other industries, including construction, there are expected to be plenty of openings. Challenger Gray and Christmas, which tracks employment trends, predicts American companies will hire at least 1.5 million 16- to 19-year-olds this summer. That would be a 25 percent drop from a decade ago, but only a slight dip over last year. But experts say it's not fair to blame all of that decline on the economy.
KENNY: I think you have to combine that with a good number of teens who choose not to work, teens who go to Europe for the summer, teens who volunteer for the summer, teens who just decide to hang out.
MILLER: If the teen labor market is soft this summer, Citi analyst Kimberly Greenberger warns teen retailers will likely feel the pinch.
KIMBERLY GREENBERGER, RETAIL ANALYST, CITIGROUP: The labor market for teens is really important when it comes to that incremental spending on the part of teens. They may get some regular allowance money from their parents. But when teens are looking to spend on splurge items or more discretionary apparel purchases that may be above and beyond their needs, they really do rely on that income.
MILLER: That's not the only headwind facing retailers like Steve & Barry's, a clothing chain popular with teens. High food and gasoline prices are also crimping spending. As a result, retailers are doing what they can to attract teen dollars. Here at Steve & Barry's, they are promoting exclusive celebrity clothing lines. The chain offers fashions designed by actresses Amanda Bynes and Sarah Jessica Parker. Teen stores are one of the most recession-resistant categories in retail. Many parents would rather cutback on purchases for themselves than for their kids. But analysts say budgets are stretched so thinly for some families, that they are forced to make cuts across the board.
GREENBERGER: We've got very high food inflation, high gas prices, home prices continue to fall already after two years of declines, so there are a lot of pressures facing parents today. And it may be starting to trickle its way into lower spending on teens.
MILLER: Given the competitive environment, there many be an upside for shoppers. Many stores are focused on value pricing in an effort to attract customers. Erika Miller, NIGHTLY BUSINESS REPORT, New York.
