LANSING — Michigan teenagers searching for summer jobs in 2026 could face a more competitive labor market than in recent years, even as hourly wages continue climbing across many entry-level industries.

A new forecast released by the Michigan Department of Technology, Management & Budget projects roughly 252,500 teens ages 16 to 19 will participate in the labor force this summer, with about 207,100 expected to find work while an estimated 45,400 remain unemployed. That would place the teen unemployment rate at 18 percent during the June-through-August hiring season.

State labor analysts said the increase reflects a growing number of young people entering the job market at a time when employers remain cautious about hiring and competition for entry-level positions is intensifying.

“While Michigan’s unemployment rate overall has been steady for many months, the teen unemployment rate has been trending upwards,” said Wayne Rourke, labor market information director for the Michigan Center for Data and Analytics. “There is high demand in many of the industries that typically hire teen workers, so young job seekers will have to remain vigilant when applying for jobs.”

Michigan’s teen unemployment rate averaged 18.1 percent in 2025, up from roughly 13 percent in both 2023 and 2024. Nationally, teen unemployment also has been rising, increasing from 10.5 percent in early 2023 to 14.1 percent in the first quarter of 2026.

At the same time, wages for younger workers are moving higher because of Michigan’s rising minimum wage and continued labor shortages in sectors such as retail, restaurants, hospitality, tourism, and seasonal recreation.

Michigan’s minimum wage increased to $13.73 per hour on Jan. 1, 2026, while the state’s youth wage for 16- and 17-year-old workers rose to roughly $11.67 per hour, or 85 percent of the standard minimum wage.

As a result, many teen workers entering the labor market this summer are expected to earn between $12 and $15 per hour in common entry-level jobs, with some higher-demand seasonal positions paying even more.

Industry analysts say jobs such as lifeguards, camp counselors, landscaping crews, warehouse workers, amusement operators, and busy restaurant positions are increasingly advertising wages in the $15-to-$18-per-hour range as employers compete for reliable workers.

That represents a major shift from just a few years ago, when many Michigan summer jobs for teens paid closer to $9 to $11 an hour before the pandemic-era labor shortage reshaped wage expectations.

Industries expected to hire the largest number of teens this summer remain retail trade and accommodation and food services. Occupations such as retail salesperson, fast food and counter worker, and stocker and order filler continue to rank among the state’s most in-demand entry-level jobs.

Many of those positions offer flexible scheduling and minimal experience requirements, making them attractive to students, recent graduates, and first-time workers.

Michigan’s population of teens ages 16 to 19 is projected to total approximately 515,000 in 2026, with nearly half expected to either work or actively seek employment during the summer months.

Meanwhile, the Michigan Department of Labor and Economic Opportunity recently launched a new Youth Workers’ Rights Initiative aimed at helping young employees better understand workplace safety rules, fair pay requirements, wage protections, and work permit regulations.

State officials are encouraging teens preparing for summer employment to review resources available through Michigan’s youth employment portal and connect with local Michigan Works! offices for resume assistance, job searches, and access to the Pure Michigan Talent Connect system.

Additional labor market and economic data is available through the state’s labor market information programs and the MiEconomy mobile app.