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Automation, Older Workers and Online Hiring Create New Challenges for Michigan Teen Workers

DETROIT, Mich.(WOWO) — Finding a first job has become more difficult for many Michigan teenagers as competition increases and technology changes the way businesses hire and operate.

Teen unemployment in Michigan reached 18% this summer, according to state and federal labor data, compared with a national teen unemployment rate of 14.6%.

The rate is also higher than it was in Michigan in recent years, rising from about 13% in 2023 according to Bridge Michigan.

Labor experts say teenagers are facing a more competitive job market as more people compete for entry-level positions and businesses increasingly rely on online applications and automated systems.

“This is typical because unemployment is higher for everybody in the last couple of years but that disproportionately hurts the teens because they’re only looking for jobs for a few months out of the year, as opposed to all year round,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics.

Rourke said the summer labor market creates additional competition because teens and young adults are often looking for temporary jobs while school is out.

The state estimates about 207,100 teenagers will work between June and August, while roughly 45,400 will be unemployed. Michigan’s overall unemployment rate for workers of all ages is about 5%.

For many teens, the traditional process of walking into a business, filling out an application and speaking with a manager has largely disappeared.

Instead, job seekers are often directed to online applications that may be reviewed by automated hiring systems before reaching a human recruiter.

Tim Queen, general manager at Emagine Royal Oak, said the hiring process has changed significantly.

“Ten years ago, a high school kid or a college kid could just walk in and fill out an application and sometimes get an on-the-spot interview,” Queen said. “Now, even for us, we direct anybody who is inquiring about hiring to our website to fill out an online application.”

Queen said applicants still complete in-person interviews, but only after an initial phone screening.

Technology has also reduced the number of some traditional teen jobs.

At movie theaters, self-service ticket kiosks and online ticket purchases have reduced the need for workers at ticket counters.

“On a given Friday night we would maybe have four or five box office workers to sell tickets but that was before not only the kiosks but also before the ability to buy your tickets in advance online,” Queen said.

Emagine Royal Oak now uses self-service kiosks and typically staffs at least one employee at the ticket counter, particularly during busy periods.

However, Queen said automation has not eliminated the need for workers. The theater still employs staff members to serve customers, prepare food, handle payments, assist guests and work behind the scenes.

“We still need a good amount of people on staff for our ushering duties … and behind the scenes too, even in our kitchen,” Queen said.

Another factor affecting entry-level jobs is the growing number of older Americans remaining in the workforce.

While teen unemployment has increased, unemployment among workers over age 55 has remained relatively low. In Michigan, the unemployment rate for residents over 55 is about 4%.

Economists say more older adults are delaying retirement for a variety of reasons, including financial needs, longer life expectancy and changes to retirement benefits.

“The Social Security for retirement age has increased, so people need to wait longer to get full benefits,” said economist Marick Masters. “Another factor is that people are living longer, so people enjoy working longer to keep busy.”

Others continue working because they cannot afford to stop.

“The thing that is truly gone is the idea of people doing one thing for decades and just stopping cold turkey,” Masters said. “There are many more complicated pathways.”

Some teenagers are turning to workforce development programs to find opportunities that connect them directly with employers.

Eighteen-year-old Arianna Bandford of Detroit said she struggled to find work after applying to numerous positions.

“The concept of having a teenage job is just gone because there’s always older people working at the fast-food jobs,” Bandford said. “It’s just making it hard for us teens to get into those jobs nowadays because they’re the ones taking up all the jobs and all the hours.”

Bandford found employment through Detroit’s Grow Detroit’s Young Talent Program, a workforce initiative that connects young people with summer jobs in fields including retail, accounting, event planning and public safety programs.

The program placed more than 8,000 teens in jobs last year.

Bandford said she applied to dozens of positions before finding work at Camp Dinner Table in Detroit, where she helps with hands-on cooking and food safety workshops for children.

“One of the other jobs I applied to told me I didn’t have enough experience for the position I applied for, so they didn’t want to hire me,” Bandford said. “Other jobs never even reached back out to me.”

As technology continues changing the workplace, workforce experts say programs that provide young people with direct connections to employers, training and experience may become increasingly important for teens trying to land their first jobs.

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