If there’s anything positive about the current economy, it would have to be the labor market. In 2022, the unemployment rate has been slowly declining as US employers are hiring more citizens, going from 4 percent in January to the status quo of 3.6 percent. Recently, in the April jobs report, the economy added 428,000 jobs, a slight increase from the previous month, showing strong demand even with high inflation.
A more interesting trend has been seen with the unemployment numbers, and it involves us teenagers. With jobs of all sorts in different industries offering better wages, along with many other factors, this market has been very inviting for teenagers to start working in the economy. Data has supported this, with the unemployment rate for 16- to 19-year-olds sitting at 10.9 percent, which is approaching a new 68-year low that was set in May of last year. A third of this age group is now in the workforce, and this is slated to grow with the summer approaching. According to labor economist Sasser Modestino, adults are shying away from jobs which is causing businesses to look towards the youth. You can find this trend in industries that witnessed a mass exodus of workers as a result of the pandemic, with fitting examples being retail and hospitality. This trend could have some positive effects on the economy as we’ve talked about the problems new generations face when entering things like the housing market, and getting an early start is always a good thing. Most importantly, they can start to invest their new income and compound it.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.