For release 10:00 a.m. (EDT) Thursday, August 16, 2018                       USDL-18-1316

Technical information: (202) 691-6378  *  cpsinfo@bls.gov  *  www.bls.gov/cps
Media contact:         (202) 691-5902  *  PressOffice@bls.gov


                 EMPLOYMENT AND UNEMPLOYMENT AMONG YOUTH -- SUMMER 2018


From April to July 2018, the number of employed youth 16 to 24 years old increased by
2.0 million to 20.9 million, the U.S. Bureau of Labor Statistics reported today. This
year, 55.0 percent of young people were employed in July, little changed from a year
earlier. (The month of July typically is the summertime peak in youth employment.)
The unemployment rate for youth was 9.2 percent in July, also little changed from
July 2017. (Because this analysis focuses on the seasonal changes in youth employment
and unemployment that occur each spring and summer, the data 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. During these months, large numbers of high
school and college students search for or take summer jobs, and many graduates enter
the labor market to look for or begin permanent employment. This summer, the youth
labor force grew by 2.6 million, or 12.7 percent, to a total of 23.0 million in July.
(See table 1.)

The labor force participation rate for all youth was 60.6 percent in July, unchanged
from a year earlier. (The labor force participation rate is the proportion of the
civilian noninstitutional population that is working or looking and available for
work.) (See table 2.) The summer labor force participation rate of youth has held
fairly steady since July 2010, after trending downward for the prior two decades. The
summer youth labor force participation rate peaked at 77.5 percent in July 1989.

The July 2018 labor force participation rate for 16- to 24-year-old men, at 61.1
percent, was down 1.2 percentage points over the year. The rate for young women, at
60.0 percent, rose 1.2 percentage points during the same period, reducing the gap in
labor force participation between young men and women. Whites had the highest youth
labor force participation rate in July 2018, at 62.8 percent. The rate was 56.
5 percent for Blacks, 43.3 percent for Asians, and 58.0 percent for Hispanics. Over
the year, the labor force participation rate rose for Hispanics (+1.4 percentage
points) and declined for Asians (-4.1 points). The decline among Asians offset a
similar increase (+4.3 percentage points) between July 2016 and 2017. Labor force
participation rates in July 2018 for Whites and Blacks were essentially unchanged
from a year earlier.
 
Employment

In July 2018, there were 20.9 million employed 16- to 24-year-olds, about the same
number as the summer before. Between April and July 2018, the number of employed
youth rose by 2.0 million, in line with the change between April and July 2017. The
employment-population ratio for youth--the proportion of the 16- to 24-year-old
civilian noninstitutional population with a job--was 55.0 percent in July 2018,
little changed from the prior year. (See tables 1 and 2.)

Employment-population ratios in July 2018 were higher than a year earlier for young
women (54.8 percent), Whites (58.0 percent), and Hispanics (51.7 percent). The ratios
declined for young men (55.2 percent) and Asians (39.7 percent). The ratio for Blacks,
at 47.2 percent in July, was about unchanged from the summer before.

In July 2018, the largest percentage of employed youth worked in the leisure and
hospitality industry (26 percent), which includes food services. An additional 18
percent of employed youth worked in the retail trade industry, and 11 percent worked
in education and health services. (See table 3.)

Unemployment

Unemployment among youth rose by 567,000 from April to July 2018, compared with an
increase of 458,000 for the same period in 2017.

The youth unemployment rate, at 9.2 percent in July 2018, was little changed from
July 2017. This represents the lowest summer youth unemployment rate since July 1966.
The number of unemployed youth was 2.1 million in July 2018, little different from a
year earlier. Of the 2.1 million unemployed 16- to 24-year-olds, 1.5 million were
looking for full-time work in July 2018, also little changed from July 2017. (See
tables 1 and 2.)

In July 2018, the unemployment rates for both young men (9.8 percent) and women
(8.6 percent) were little changed from the summer before. The July 2018 rate for
young Asians (8.4 percent) declined over the year, while the rates for young Whites
(7.6 percent), Blacks (16.5 percent), and Hispanics (10.8 percent) showed little
change over the year. (See table 2.)

Technical Note


   The estimates in this release were obtained from the Current Population Survey (CPS),
a national sample survey of about 60,000 eligible 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.

   Beginning in January of each year, data reflect revised population controls used in
the CPS. Additional information about population controls is available on the BLS
website at www.bls.gov/cps/documentation.htm#pop.

   Information in this release will be made available to sensory impaired individuals
upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Reliability of the estimates

   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 component
of this difference that occurs because samples differ by chance is known as sampling
error, and its 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.

   More information on the reliability of data from the CPS and estimating standard errors
is available online at www.bls.gov/cps/documentation.htm#reliability.

Definitions

   The principal definitions used in this release are described briefly below.

   Employed. Employed persons are all those who, during the survey reference week (which
is generally the week including the 12th day of the month), (a) did any work at all as
paid employees; (b) worked in their own business, profession, or on their own farm;
(c) worked 15 hours or more as unpaid workers in a family member's business. Persons who
were temporarily absent from their jobs because of illness, bad weather, vacation, labor
dispute, or another reason also are counted as employed.

   Unemployed. The unemployed are those who had no employment during the reference week,
were available for work at that time, and had made specific efforts to find employment
sometime during the 4-week period ending with the reference week. 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. Looking for full-time work refers to 35 hours or more
per week; part-time work refers to fewer than 35 hours per week.

   Civilian labor force. This group comprises all persons classified as employed or
unemployed.

   Unemployment rate. The unemployment rate is the number of unemployed persons as a
percent of the civilian labor force.

   Labor force participation rate. The labor force participation rate is the labor force
as a percent of the population.

   Employment-population ratio. The employment-population ratio is the employed as a
percent of the population.

   Not in the labor force. Included in this group are all persons in the civilian
noninstitutional population who are neither employed nor unemployed.

   Industry and class of worker. This information applies to the job held during the
reference week. Persons with two or more jobs are classified in the job at which they
worked the greatest number of hours. Persons are classified using the 2012 Census
industry classification system. The class-of-worker breakdown assigns workers to the
following categories: Private and government wage and salary workers, unincorporated
self-employed workers, and unpaid family workers.

   Wage and salary workers. Included in this group are persons who receive wages, salary,
commissions, tips, or pay in kind from a private employer or from a government entity.

   Self-employed workers. Included in this group are those who work for profit or fees
in their own unincorporated business, profession, trade, or farm. Only unincorporated
self-employed are included in the self-employed category. Self-employed persons whose
businesses are incorporated are included with private wage and salary workers.

   Unpaid family workers. Included in this group are persons working without pay for
15 hours a week or more on a farm or in a business operated by a family member in their
household.