Technical information: (202) 691-6378 USDL 02-478 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Tuesday, August 13, 2002 EMPLOYMENT AND UNEMPLOYMENT AMONG YOUTH--SUMMER 2002 The number of employed youth 16 to 24 years old increased by 2.4 million from April to July, the traditional summertime peak for youth employment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This year's seasonal expansion in youth employment was about the same size as last year's. Nevertheless, the proportion of youth in the labor force this July, 69.5 percent, was down from 70.8 percent last July and was the lowest rate for any July since 1971. The number of unemployed youth rose by 530,000 between April and July 2002; this was larger than the seasonal increases in the prior 3 years. (Because this analysis focuses on the seasonal change in youth employment and unemploy- ment that occurs every spring and summer, the data used are not seasonally adjusted.) Labor Force The youth labor force--16- to 24-year-olds working or actively looking for work--grows sharply between April and July each year as large numbers of high school and college students take or search for summer employment and many recent graduates begin or seek permanent jobs. This summer, the youth labor force rose by 2.9 million to a total of 24.6 million in July. (See table 1.) Although the April-to-July increase in the number of youth in the labor force was about the same as last year, the labor force participation rate for youth--the proportion of their population working or looking for work--declined from 70.8 to 69.5 percent. The over-the-year decrease in labor force participation may be due, in part, to the softness in the labor market in 2002. In addition, declines in participation in recent years may reflect an increase in school enrollment during the summer. In July 2002, 26.0 percent of 16- to 24-year-olds were enrolled in school, up from 16.3 percent in July 1994. About half of the youth enrolled in school in July 2002 were in the labor force compared with three-fourths of those not in school. In July 2002, the labor force participation rate for young men, which has been trending down since 1990, was at its lowest July point on record, 72.2 percent. The July 2002 participation rate for young women (66.7 percent) was relatively unchanged from July 2001. The July 2002 participation rates for both young whites (72.5 percent) and young blacks (57.3 percent) decreased from their July 2001 values. (See table 2.) Employment Nearly 21.6 million youth were employed in July 2002. The employment- population ratio for youth--the proportion of the 16- to 24-year-old civilian noninstitutional population employed--was 60.9 percent. The ratio decreased from its level of 63.5 percent in July 2001 and was the lowest July value since 1971. In July 2002, the employment-population ratios for young men (63.1 percent), young women (58.6 percent), young whites (64.7 percent), and young blacks (44.4 percent) were all lower than in July 2001. - 2 - In July 2002, 36 percent of employed youth worked in retail trade (including fast food restaurants) and 27 percent worked in services. Also, large percentages of employed youth worked in government, manufacturing, and construction. (See table 3.) Unemployment Three million youth were unemployed in July 2002; they were not working but were actively looking for work and were available to take a job. The youth unemployment rate was 12.4 percent, up from 10.4 percent in July 2001 and the recent low of 9.6 percent in July 2000. In July 2002, the unemployment rate for young men (12.6 percent), young women (12.2 percent), and young whites (10.7 percent) was higher than in July 2001. The July 2002 rate for young blacks (22.5 percent), however, was little changed from July 2001. (See table 2.) Technical Note The estimates in this release were obtained from the Current Population Survey (CPS), a national sample survey of 60,000 households conducted monthly for the Bureau of Labor Statistics (BLS) by the U.S. Census Bureau. The data in this release relate to the employment status of youth (16- to 24-year-olds) during the months of April-July. This period was selected as being the most representative time frame in which to measure the full summertime transition from school to work. July is the peak summer month of youth employment. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone: 1-800-877-8339. Reliability Statistics based on the CPS are subject to both sampling and nonsampling error. When a sample, rather than the entire population, is surveyed, there is a chance that the sample estimates may differ from the "true" population values they represent. The exact difference, or sampling error, varies depending upon the particular sample selected, and this variability is measured by the standard error of the estimate. There is about a 90-percent chance, or level of confidence, that an estimate based on a sample will differ by no more than 1.6 standard errors from the "true" population value because of sampling error. BLS analyses are generally conducted at the 90-percent level of confidence. The CPS data also are affected by nonsampling error. Nonsampling error can occur for many reasons, including the failure to sample a segment of the population, inability to obtain information for all respondents in the sample, inability or unwillingness of respondents to provide correct information, and errors made in the collection or processing of the data. For a full discussion of the reliability of data from the CPS and information on estimating standard errors, see the "Explanatory Notes and Estimates of Error" section of Employment and Earnings. - 3 - Definitions The principal definitions used in this release are described briefly below. Employed persons are (a) all those who, during the survey reference week, did any work at all as paid employees, worked in their own business, profession, or on their own farm, or who worked 15 hours or more as unpaid workers in a family-operated enterprise; and (b) all those who did not work but had jobs or businesses from which they were temporarily absent due to illness, bad weather, vacation, child-care problems, labor disputes or personal reasons, whether or not they were paid by their employers for the time off and whether or not they were seeking other jobs. Unemployed persons are all persons who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4 weeks preceding the survey. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed. Civilian labor force comprises all persons classified as employed or unemployed. Unemployment rate represents the number of unemployed persons as a percent of the civilian labor force. Not in the labor force includes all persons who are not classified as employed or unemployed. Industry and class of worker for the employed relate to the job held in the survey reference week. Persons with two or more jobs are classified in the job at which they worked the greatest number of hours. In terms of class- of-worker categories, wage and salary workers are those who receive wages, salaries, commissions, tips, or pay-in-kind from a private employer or from a government unit; self-employed persons are those who work for profit or fees in their own business, profession, or trade, or operate a farm; and unpaid family workers are persons working without pay for 15 hours a week or more in an enterprise operated by a member of their family. Table 1. Employment status of the civilian population 16 to 24 years of age by sex and race, April-July 2002 (Numbers in thousands. Data are not seasonally adjusted.) April-July changes(1) Employment status, sex, and race April May June July Number Percent TOTAL Civilian noninstitutional population................... 35,390 35,397 35,335 35,450 60 0.2 Civilian labor force................................. 21,688 22,121 24,098 24,633 2,945 13.6 Participation rate............................. 61.3 62.5 68.2 69.5 8.2 13.4 Employed........................................... 19,169 19,536 20,910 21,584 2,415 12.6 Employment-population ratio (2)................ 54.2 55.2 59.2 60.9 6.7 12.4 Unemployed......................................... 2,519 2,586 3,188 3,049 530 21.0 Looking for full-time work....................... 1,732 1,838 2,432 2,254 523 30.2 Looking for part-time work....................... 787 748 756 795 7 .9 Unemployment rate................................ 11.6 11.7 13.2 12.4 .8 6.9 Not in labor force................................... 13,702 13,276 11,236 10,816 -2,885 -21.1 Men Civilian noninstitutional population................... 17,763 17,768 17,734 17,789 26 .1 Civilian labor force................................. 11,184 11,533 12,517 12,846 1,663 14.9 Participation rate............................. 63.0 64.9 70.6 72.2 9.2 14.6 Employed........................................... 9,797 10,119 10,808 11,232 1,435 14.6 Employment-population ratio (2)................ 55.2 57.0 60.9 63.1 7.9 14.3 Unemployed......................................... 1,387 1,414 1,709 1,615 228 16.4 Looking for full-time work....................... 1,012 1,029 1,307 1,172 160 15.8 Looking for part-time work....................... 375 385 402 443 68 18.1 Unemployment rate................................ 12.4 12.3 13.7 12.6 .2 1.6 Not in labor force................................... 6,579 6,235 5,217 4,943 -1,636 -24.9 Women Civilian noninstitutional population................... 17,627 17,629 17,601 17,660 33 .2 Civilian labor force................................. 10,504 10,588 11,581 11,787 1,283 12.2 Participation rate............................. 59.6 60.1 65.8 66.7 7.1 11.9 Employed........................................... 9,372 9,417 10,102 10,353 981 10.5 Employment-population ratio (2)................ 53.2 53.4 57.4 58.6 5.4 10.2 Unemployed......................................... 1,132 1,172 1,479 1,435 303 26.7 Looking for full-time work....................... 720 808 1,125 1,082 362 50.3 Looking for part-time work....................... 413 363 354 352 -61 -14.8 Unemployment rate................................ 10.8 11.1 12.8 12.2 1.4 13.0 Not in labor force................................... 7,123 7,041 6,020 5,873 -1,250 -17.5 White Civilian noninstitutional population................... 28,158 28,188 28,218 28,242 84 .3 Civilian labor force................................. 17,993 18,353 20,039 20,472 2,479 13.8 Participation rate............................. 63.9 65.1 71.0 72.5 8.6 13.5 Employed........................................... 16,207 16,471 17,786 18,280 2,073 12.8 Employment-population ratio (2)................ 57.6 58.4 63.0 64.7 7.1 12.3 Unemployed......................................... 1,786 1,882 2,253 2,192 406 22.7 Looking for full-time work....................... 1,214 1,290 1,668 1,575 362 29.8 Looking for part-time work....................... 573 592 586 617 44 7.7 Unemployment rate................................ 9.9 10.3 11.2 10.7 .8 8.1 Not in labor force................................... 10,165 9,835 8,179 7,770 -2,395 -23.6 Black Civilian noninstitutional population................... 5,282 5,287 5,293 5,297 15 .3 Civilian labor force................................. 2,765 2,806 3,032 3,037 272 9.8 Participation rate............................. 52.4 53.1 57.3 57.3 4.9 9.4 Employed........................................... 2,152 2,233 2,279 2,353 200 9.3 Employment-population ratio (2)................ 40.7 42.2 43.1 44.4 3.7 9.1 Unemployed......................................... 613 573 753 684 71 11.6 Looking for full-time work....................... 441 456 638 560 119 27.1 Looking for part-time work....................... 173 117 114 124 -49 -28.3 Unemployment rate................................ 22.2 20.4 24.8 22.5 .3 1.4 Not in labor force................................... 2,517 2,481 2,261 2,260 -256 -10.2 1 Changes are calculated using unrounded data. 2 Employment as a percent of the civilian noninstitutional population. Table 2. Employment status of the civilian population 16 to 24 years of age by sex and race, July 1999-2002 (Numbers in thousands. Data are not seasonally adjusted.) Employment status, sex, and race 1999 2000 2001 2002 TOTAL Civilian noninstitutional population............................. 34,000 34,422 35,066 35,450 Civilian labor force........................................... 24,672 24,748 24,842 24,633 Participation rate....................................... 72.6 71.9 70.8 69.5 Employed..................................................... 22,178 22,368 22,252 21,584 Employment-population ratio (1).......................... 65.2 65.0 63.5 60.9 Unemployed................................................... 2,494 2,379 2,591 3,049 Looking for full-time work................................. 1,888 1,746 1,896 2,254 Looking for part-time work................................. 607 633 694 795 Unemployment rate.......................................... 10.1 9.6 10.4 12.4 Not in labor force............................................. 9,327 9,674 10,224 10,816 Men Civilian noninstitutional population............................. 17,076 17,286 17,560 17,789 Civilian labor force........................................... 12,975 13,030 13,030 12,846 Participation rate....................................... 76.0 75.4 74.2 72.2 Employed..................................................... 11,638 11,766 11,659 11,232 Employment-population ratio (1).......................... 68.2 68.1 66.4 63.1 Unemployed................................................... 1,337 1,264 1,372 1,615 Looking for full-time work................................. 1,053 995 1,045 1,172 Looking for part-time work................................. 284 269 327 443 Unemployment rate.......................................... 10.3 9.7 10.5 12.6 Not in labor force............................................. 4,102 4,256 4,530 4,943 Women Civilian noninstitutional population............................. 16,923 17,136 17,506 17,660 Civilian labor force........................................... 11,697 11,718 11,812 11,787 Participation rate....................................... 69.1 68.4 67.5 66.7 Employed..................................................... 10,540 10,603 10,593 10,353 Employment-population ratio (1).......................... 62.3 61.9 60.5 58.6 Unemployed................................................... 1,157 1,115 1,219 1,435 Looking for full-time work................................. 834 751 851 1,082 Looking for part-time work................................. 323 364 368 352 Unemployment rate.......................................... 9.9 9.5 10.3 12.2 Not in labor force............................................. 5,226 5,419 5,694 5,873 White Civilian noninstitutional population............................. 27,138 27,431 27,892 28,242 Civilian labor force........................................... 20,425 20,519 20,606 20,472 Participation rate....................................... 75.3 74.8 73.9 72.5 Employed..................................................... 18,763 18,913 18,781 18,280 Employment-population ratio (1).......................... 69.1 68.9 67.3 64.7 Unemployed................................................... 1,662 1,606 1,824 2,192 Looking for full-time work................................. 1,244 1,146 1,322 1,575 Looking for part-time work................................. 417 459 502 617 Unemployment rate.......................................... 8.1 7.8 8.9 10.7 Not in labor force............................................. 6,713 6,913 7,287 7,770 Black Civilian noninstitutional population............................. 5,102 5,158 5,231 5,297 Civilian labor force........................................... 3,242 3,200 3,158 3,037 Participation rate....................................... 63.5 62.0 60.4 57.3 Employed..................................................... 2,532 2,549 2,530 2,353 Employment-population ratio (1).......................... 49.6 49.4 48.4 44.4 Unemployed................................................... 709 651 627 684 Looking for full-time work................................. 581 519 473 560 Looking for part-time work................................. 128 132 154 124 Unemployment rate.......................................... 21.9 20.3 19.9 22.5 Not in labor force............................................. 1,860 1,959 2,073 2,260 1 Employment as a percent of the civilian noninstitutional population. Table 3. Employed persons 16 to 24 years of age by industry, class of worker, and race, July 2001-02 (Numbers in thousands. Data are not seasonally adjusted.) Total White Black Industry and class of worker 2001 2002 2001 2002 2001 2002 Total employed................................... 22,252 21,584 18,781 18,280 2,530 2,353 Agriculture ......................................... 703 783 678 725 15 34 Nonagricultural industries........................... 21,549 20,801 18,103 17,555 2,516 2,318 Private wage and salary workers.................... 19,625 18,830 16,556 16,011 2,250 2,025 Mining........................................... 58 30 52 30 3 - Construction..................................... 1,539 1,283 1,471 1,187 37 80 Manufacturing.................................... 1,851 1,595 1,597 1,376 181 159 Transportation and public utilities.............. 872 768 691 611 147 128 Wholesale trade.................................. 509 563 441 480 57 64 Retail trade..................................... 7,828 7,738 6,541 6,593 958 809 Finance, insurance, and real estate.............. 1,028 989 861 823 119 100 Services......................................... 5,941 5,864 4,901 4,912 749 685 Government......................................... 1,617 1,624 1,289 1,247 240 257 Federal.......................................... 203 219 160 149 31 57 State............................................ 609 452 471 329 101 68 Local............................................ 805 953 658 769 108 132 Self-employed and unpaid family workers............ 307 347 258 297 25 36 NOTE: Dash represents zero.