When my cousin Sal walked into the neighborhood grocery store, his heart brimmed with hope. As a 19-year-old college student, he was eager to secure his first part-time job to help with college expenses and gain work experience. For years, Frankie’s Superette had been a trusted place in our neighborhood where students like Sal could land their first jobs. But this time, Sal noticed a difference. The cashiers were gone, replaced by sleek self-checkout machines. The manager explained that because of a recent minimum wage increase, the store had reduced hiring and turned to automation to cut costs. Sal left disheartened, realizing that a policy meant to help workers had shut him out of an opportunity.
Stories like Sal’s have shaped my perspective. While raising the minimum wage may be well-intentioned, it can backfire by limiting job opportunities, fueling automation, and cutting off pathways to essential skill-building, especially for young people like me and my peers.
Sal’s story isn’t unique. Across the country, young people face similar challenges when trying to enter the workforce. A review conducted by Neumark and Wascher found that minimum wage hikes are often linked to lower employment rates among young and unskilled workers, as businesses become less willing to hire inexperienced employees at higher wage rates.
The shift toward automation has made this issue worse. As labor costs rise, businesses turn to technology to handle tasks once performed by entry-level workers. Self-service kiosks and mobile apps have replaced many jobs, especially in fast food and retail. For example, I order my McDonald’s meals directly through their app without speaking to a cashier (“McDonald’s Rolls Out Self-Serve Cash Kiosks”). Starbucks, Chipotle, and other chains now encourage mobile ordering, further reducing the need for entry-level staff. Sam’s Club has expanded its “Scan & Go” technology, letting customers skip checkout lanes (“Sam’s Club Expands AI-Powered Checkout Tech”). Toll plazas now operate with automated E-ZPass systems, eliminating most toll booth operators (Morlok). Even airports expect travelers to print luggage tags and check bags at kiosks—jobs that were once entry-level.
Research from the Federal Reserve Bank of Chicago shows that jobs focused on routine tasks, like cashiering, are among the first to be replaced when labor costs increase (Aaronson and Phelan). A Brookings Institution study found that the rise of apps and kiosks has significantly changed staffing patterns, pushing businesses away from face-to-face customer service (Muro et al.).
For Sal and countless young workers, this means fewer jobs in roles that once served as “first jobs.” The impact goes beyond just missing a paycheck. Entry-level jobs teach vital skills like communication, teamwork, and time management-lessons we can’t get from textbooks. Without these roles, many young people miss critical experiences that shape their careers and future earnings.
This concern is personal. My sister, a high school senior, plans to work part-time to support her studies. Yet after hearing Sal’s story, she worries about the shrinking number of student-friendly jobs. Competing not only with peers but also with kiosks and apps is daunting.
As I think about my own future, Sal’s story feels personal. I’m still in middle school, but when it’s time for my friends and I to look for our first jobs, I hope to earn money for college and gain real-world experience. Yet with businesses cutting entry-level jobs due to rising labor costs, I worry: will there be any left when it’s our turn?
I imagine walking into a store like Sal did, ready to apply, only to be met by a touchscreen or an app instead of a hiring manager. Even though I’m not yet applying for jobs, I already feel the challenge ahead. My generation isn’t looking for easy breaks. We want the chance to learn, contribute, and grow. But with fewer doors open, it feels like the ladder we hope to climb is missing its bottom rungs.
When young people can’t find work, local economies feel the strain. A study on automation’s impact found that while automation boosts productivity, it often reduces labor demand for low-skilled workers, which can weaken local economies (Acemoglu and Restrepo).
Supporters of raising the minimum wage argue that it reduces poverty and improves living standards. While this is true in some cases, it’s important to weigh the risks for young and inexperienced workers. A meta-analysis published in the American Journal of Health Economics concluded that a 10% increase in the minimum wage could reduce employment rates by up to 2.6%, with stronger effects on younger workers (Belman and Wolfson).
Raising the minimum wage sounds like a solution, but it can bring setbacks for young workers like Sal, my sister, and even myself. As we prepare to enter the workforce, we may find fewer jobs and fewer chances to learn essential skills. I believe raising the minimum wage hinders entry-level workers more than it helps. The shrinking job market, the rise of automation, and the loss of early work experiences should make us pause and rethink. To truly support young workers, we need policies that balance fair wages with keeping the first rungs on the ladder firmly in place.