Dailey Jogan was pleased to learn she would get $15 an hour and a handful of perks as the head swim coach for a metro Detroit team. Her older brother's reaction looked more like surprise. At 18 years old, Jogan has spent the summer organizing meets as staff leader of the 250-person team. She also gets some freebies for facilities housed within the park where they practice, like access to the gym and a few comped tickets to the movie theater. That $15 per hour wage is about 25%, or $3 per hour, more than her older brother earned in the same role five years ago. And if he wanted to use the workout equipment or catch a film, he had to dig into his wallet to pay like everyone else. "I was very pleasantly surprised," Dailey Jogan said. "I feel very valued." That change in pay and benefits underscores the changing job outlook for the millions of American teen workers following the pandemic-induced labor crunch. While other Covid-related shocks to the economy have dissipated in recent years, young employees fetching higher wages and additional incentives appears to be a new normal. Data from Gusto, a payroll platform serving more than 300,000 businesses across the country, shows just how much ground teens have gained. The typical wage for a newly hired worker ages 15 through 19 came in at $15.68 per hour in June, up more than 36% from the start of 2019.
That outpaces the rate of growth for all workers regardless of age on private payrolls, which has climbed just under 27% over the same time period, according to federal data. What's more, Gusto stats show teens have been uniquely insulated from shifts in broader economic conditions that have at times led to lower pay for some adults. "I could probably overstate the benefit to teens in this labor market, but, I mean, I would have to go pretty far to do it," said Liz Wilke, Gusto's principal economist. "It's a much better time to be a teen entering the labor force today than it was five or 10 years ago."
Employers woo workers
Beyond pay, businesses courting teens have added additional benefits — like Jogan's gym and theater access — to sweeten the offer. At fast-casual chain Chipotle Mexican Grill , workers have been eligible for a tuition reimbursement program since before the pandemic. Earlier this year, the California-based company added a well-being offering, which includes six free sessions with a licensed counselor or mental health coach. Chipotle also launched a match program, where eligible employees who make payments on student loans will get up to 4% of pay from the company in their retirement account. Additions to Chipotle's benefits package in recent years have come after surveying its U.S. restaurant workers — more than one-third of whom are teens. While these offerings can push up operating costs, head of global benefits Daniel Banks said they are worthwhile to get enough new hires and open more stores. It can also boost worker retention, in turn keeping existing locations operating smoothly.
