For release 10:00 a.m. (EDT) Tuesday, August 21, 2012                    USDL-12-1717

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 2012


From April to July 2012, the number of employed youth 16 to 24 years old rose 2.1 
million to 19.5 million, the U.S. Bureau of Labor Statistics reported today. This 
year, the share of young people employed in July was 50.2 percent. (The month of 
July typically is the summertime peak in youth employment.) Unemployment among youth
increased by 836,000 from April to July 2012, compared with an increase of 745,000 
for the same period in 2011. (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 2.9 million, or 14.2 percent, to a total of 
23.5 million in July. (See table 1.)

The labor force participation rate for all youth--the proportion of the population 
16 to 24 years old working or looking for work--was 60.5 percent in July, up from 
July 2011. Taking a longer-term perspective, the July 2012 participation rate was 
17.0 percentage points below the peak rate for that month in 1989 (77.5 percent).

The July 2012 labor force participation rate for 16- to 24-year-old men was 63.2 
percent. The rate for young women was 57.8 percent. From 1948, when the series 
began, to 1989, the July labor force participation rate for young men showed no 
clear trend, ranging from 81 to 86 percent. Since 1989, however, their July 
participation rate has trended down, falling by about 20 percentage points. The 
July labor force participation rate for young women peaked in 1989 at 72.4 percent, 
following a long-term upward trend. The participation rate of young women has fallen
by about 15 percentage points since 1989.

The youth labor force participation rate for whites was 62.9 percent in July 2012, 
compared with 54.5 percent for blacks, 43.7 percent for Asians, and 57.1 percent for
Hispanics.

Employment

Employment for 16- to 24-year-olds reached 19.5 million in July 2012, up 2.1 million
since April. In 2011, youth employment rose by 1.7 million from April to July. The 
July 2012 employment-population ratio for youth--the proportion of the 16- to 24-
year-old civilian noninstitutional population with a job--was 50.2 percent, up from 
July 2011. (See table 2.)

In July 2012, the youth employment-population ratio for men was 51.9 percent, and 
the ratio for women was 48.4 percent. The ratio for whites was 53.5 percent, compared with 
38.9 percent for blacks, 37.4 percent for Asians, and 46.5 percent for Hispanics.

Twenty-six percent of employed youth worked in the leisure and hospitality sector 
(which includes food services) in July 2012, the same proportion as in July 2011. 
Another 19 percent of employed youth worked in the retail trade industry in July 
2012, down slightly from the proportion in July 2011. (See table 3.)

Unemployment

The number of unemployed youth in July 2012 was 4.0 million, little changed from 4.1 
million a year ago. The youth unemployment rate was 17.1 percent in July 2012. The 
unemployment rate for young men was 17.9 percent, in July 2012, and the rate for 
women was 16.2 percent. The jobless rate for whites was 14.9 percent, compared with 
28.6 percent for blacks, 14.4 percent for Asians, and 18.5 percent for Hispanics. 
(See table 2.)



    _____________________________________________________________________
   |                                                                     |
   |            Adjustments to Population Estimates for Youth            |
   |                                                                     |
   |  Updated population controls are introduced annually with the       |
   |  release of January data. The updated controls in January 2012      |
   |  incorporated the Census 2010 population base for the first time;   |
   |  prior years’ data shown in this release used the Census 2000       |
   |  population base. The introduction of Census 2010-based controls    |
   |  had a disproportionate effect on the population age 16 to 24.      |
   |  Consequently, data for 2012 are not strictly comparable to those   |
   |  for earlier years. For more information, see Adjustments to        |
   |  Household Survey Population Estimates in January 2012 on the BLS   |
   |  website at www.bls.gov/cps/cps12adj.pdf.                           |
   |_____________________________________________________________________|

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

   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.

   A full discussion of the reliability of data from the CPS and information 
on estimating standard errors is available on the BLS website at
www.bls.gov/cps/documentation.htm#reliability.

Definitions

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

   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-operated enterprise; or (d) were temporarily absent from
their jobs because of illness, vacation, labor dispute, or another reason.

   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. Persons are 
classified using the 2007 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 receive wages, salary, commissions, tips, or pay
in kind from a private employer or from a government entity.
   
   Self-employed workers 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 are persons working without pay for 15 hours a week
or more on a farm or business operated by a family member in their household.