Technical information: (202) 691-6378 USDL 01-275 http://www.bls.gov/cpshome.htm For release: 10:00 A.M. EDT Media contact: 691-5902 Tuesday, August 21, 2001 EMPLOYMENT AND UNEMPLOYMENT AMONG YOUTH--SUMMER 2001 The number of employed youth 16 to 24 years old increased by about 2.4 million from April to July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This year's seasonal expansion in youth employment was slightly larger than last year's growth of 2.2 million. The number of unemployed youth, which also normally grows at this time of year, rose by about 450,000 between April and July, about the same as the increase in the prior 2 years. (Because this analysis focuses on the seasonal changes in youth employment and unemployment that occur every spring and sum- mer, 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 as many recent graduates begin or look for permanent jobs. This summer, the youth labor force rose by about 2.9 million from April to July, to a total of 24.8 million. (See table 1.) This year's seasonal growth was slightly larger than the growth in 2000 (2.6 million). However, the seasonal gains of 2000 and 2001 were smaller than those that occurred during the prior 6 years. The labor force participation rate for youth--the proportion of the youth population working or looking for work--was 70.8 percent in July. This was the lowest July labor force participation rate for youth since 1972. The decline may reflect, in part, an increase in school enrollment during the summer. This July, 24.4 percent of 16- to 24-year olds were enrolled in school, up from 16.3 percent in July 1994. About half of the youth in school in July were in the labor force compared with three-fourths of those not in school. The July participation rate for young men has been trending down since 1990 and reached its lowest point on record (74.2 percent) in 2001. The participation rates for young women (67.5 percent), young whites (73.9 percent), and young blacks (60.4 percent), all edged lower from their 2000 values. (See table 2.) Employment Nearly 22.3 million youth were employed in July 2001. The proportion of the youth civilian noninstitutional population employed (63.5 percent) was lower than in 2000 (65.0 percent). The employment-population ratios were higher for young men (66.4 percent) than for young women (60.5 percent) and higher for young whites (67.3 percent) than for young blacks (48.4 percent). - 2 - In July 2001, 35 percent of employed youth worked in retail trade (including fast food restaurants) and 27 percent worked in services. Also, sizable numbers of youth were employed in construction, manufacturing, and government. (See table 3.) Unemployment About 2.6 million youth were unemployed in July 2001; these persons were not working, but they were actively looking for work and were available to take a job. The youth unemployment rate was 10.4 percent, slightly higher than last year's rate--which was the lowest for July since 1969. In July 2001, the 8.9 percent jobless rate for whites was marginally higher than it had been in July 2000, but the rates for young men (10.5 percent), women (10.3 percent), and blacks (19.9 percent) were little changed. (See table 2.) ------------------------------------------------------------------ | Expansion of the Current Population Survey Sample | | | | Beginning in July 2001, the Current Population Survey sample | |size was increased to about 60,000 households; previously, the | |sample size was about 50,000 households. The sample expansion had| |no major impact on the data. For more information on the sample | |expansion, see "Expansion of the Current Population Survey Sample | |Effective July 2001" in the August 2001 issue of Employment and | |Earnings. | ------------------------------------------------------------------ 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. - 2 - 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 2001 (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................... 34,869 34,871 34,961 35,066 197 0.1 Civilian labor force................................. 21,984 21,934 24,210 24,842 2,858 13.0 Participation rate............................. 63.0 62.9 69.2 70.8 7.8 12.4 Employed........................................... 19,866 19,749 21,413 22,252 2,386 12.0 Employment-population ratio (2)................ 57.0 56.6 61.2 63.5 6.5 11.4 Unemployed......................................... 2,118 2,185 2,797 2,591 473 22.3 Looking for full-time work....................... 1,299 1,564 2,004 1,896 597 46.0 Looking for part-time work....................... 819 620 793 694 -125 -15.2 Unemployment rate.............................. 9.6 10.0 11.6 10.4 .8 8.2 Not in labor force................................... 12,885 12,937 10,751 10,224 -2,661 -20.7 Men Civilian noninstitutional population................... 17,508 17,492 17,528 17,560 52 .3 Civilian labor force................................. 11,414 11,396 12,619 13,030 1,617 14.2 Participation rate............................. 65.2 65.1 72.0 74.2 9.0 13.8 Employed........................................... 10,238 10,169 11,053 11,659 1,420 13.9 Employment-population ratio (2)................ 58.5 58.1 63.1 66.4 7.9 13.5 Unemployed......................................... 1,175 1,227 1,566 1,372 196 16.7 Looking for full-time work....................... 740 929 1,182 1,045 305 41.2 Looking for part-time work....................... 435 298 384 327 -109 -25.0 Unemployment rate.............................. 10.3 10.8 12.4 10.5 .2 2.2 Not in labor force................................... 6,094 6,097 4,908 4,530 -1,564 -25.7 Women Civilian noninstitutional population................... 17,361 17,379 17,433 17,506 145 .8 Civilian labor force................................. 10,570 10,538 11,590 11,812 1,242 11.7 Participation rate............................. 60.9 60.6 66.5 67.5 6.6 10.8 Employed........................................... 9,628 9,580 10,359 10,593 965 10.0 Employment-population ratio (2)................ 55.5 55.1 59.4 60.5 5.1 9.1 Unemployed......................................... 943 958 1,231 1,219 276 29.3 Looking for full-time work....................... 559 635 822 851 292 52.3 Looking for part-time work....................... 383 323 409 368 -16 -4.1 Unemployment rate.............................. 8.9 9.1 10.6 10.3 1.4 15.7 Not in labor force................................... 6,791 6,841 5,843 5,694 -1,097 -16.2 White Civilian noninstitutional population................... 27,757 27,801 27,853 27,892 135 .5 Civilian labor force................................. 18,274 18,259 20,156 20,606 2,332 12.8 Participation rate............................. 65.8 65.7 72.4 73.9 8.0 12.2 Employed........................................... 16,799 16,672 18,161 18,781 1,983 11.8 Employment-population ratio (2)................ 60.5 60.0 65.2 67.3 6.8 11.3 Unemployed......................................... 1,475 1,587 1,994 1,824 349 23.7 Looking for full-time work....................... 875 1,111 1,390 1,322 448 51.2 Looking for part-time work....................... 601 476 604 502 -99 -16.4 Unemployment rate.............................. 8.1 8.7 9.9 8.9 .8 9.7 Not in labor force................................... 9,483 9,542 7,697 7,287 -2,197 -23.2 Black Civilian noninstitutional population................... 5,205 5,213 5,223 5,231 26 .5 Civilian labor force................................. 2,738 2,703 3,047 3,158 420 15.3 Participation rate............................. 52.6 51.8 58.3 60.4 7.8 14.8 Employed........................................... 2,184 2,194 2,354 2,530 347 15.9 Employment-population ratio (2)................ 42.0 42.1 45.1 48.4 6.4 15.3 Unemployed......................................... 554 509 693 627 73 13.2 Looking for full-time work....................... 360 381 531 473 113 31.3 Looking for part-time work....................... 194 128 162 154 -40 -20.4 Unemployment rate.............................. 20.2 18.8 22.7 19.9 -.4 -1.9 Not in labor force................................... 2,467 2,511 2,175 2,073 -394 -16.0 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 1998-2001 (Numbers in thousands. Data are not seasonally adjusted.) Employment status, sex, and race 1998 1999 2000 2001 TOTAL Civilian noninstitutional population............................. 33,266 34,000 34,422 35,066 Civilian labor force........................................... 24,225 24,672 24,748 24,842 Participation rate....................................... 72.8 72.6 71.9 70.8 Employed..................................................... 21,599 22,178 22,368 22,252 Employment-population ratio (1).......................... 64.9 65.2 65.0 63.5 Unemployed................................................... 2,626 2,494 2,379 2,591 Looking for full-time work................................. 1,910 1,888 1,746 1,896 Looking for part-time work................................. 716 607 633 694 Unemployment rate........................................ 10.8 10.1 9.6 10.4 Not in labor force............................................. 9,041 9,327 9,674 10,224 Men Civilian noninstitutional population............................. 16,779 17,076 17,286 17,560 Civilian labor force........................................... 12,807 12,975 13,030 13,030 Participation rate....................................... 76.3 76.0 75.4 74.2 Employed..................................................... 11,370 11,638 11,766 11,659 Employment-population ratio (1).......................... 67.8 68.2 68.1 66.4 Unemployed................................................... 1,436 1,337 1,264 1,372 Looking for full-time work................................. 1,083 1,053 995 1,045 Looking for part-time work................................. 353 284 269 327 Unemployment rate........................................ 11.2 10.3 9.7 10.5 Not in labor force............................................. 3,973 4,102 4,256 4,530 Women Civilian noninstitutional population............................. 16,487 16,923 17,136 17,506 Civilian labor force........................................... 11,418 11,697 11,718 11,812 Participation rate....................................... 69.3 69.1 68.4 67.5 Employed..................................................... 10,228 10,540 10,603 10,593 Employment-population ratio (1).......................... 62.0 62.3 61.9 60.5 Unemployed................................................... 1,190 1,157 1,115 1,219 Looking for full-time work................................. 827 834 751 851 Looking for part-time work................................. 363 323 364 368 Unemployment rate........................................ 10.4 9.9 9.5 10.3 Not in labor force............................................. 5,068 5,226 5,419 5,694 White Civilian noninstitutional population............................. 26,606 27,138 27,431 27,892 Civilian labor force........................................... 20,028 20,425 20,519 20,606 Participation rate....................................... 75.3 75.3 74.8 73.9 Employed..................................................... 18,343 18,763 18,913 18,781 Employment-population ratio (1).......................... 68.9 69.1 68.9 67.3 Unemployed................................................... 1,685 1,662 1,606 1,824 Looking for full-time work................................. 1,178 1,244 1,146 1,322 Looking for part-time work................................. 507 417 459 502 Unemployment rate........................................ 8.4 8.1 7.8 8.9 Not in labor force............................................. 6,578 6,713 6,913 7,287 Black Civilian noninstitutional population............................. 4,993 5,102 5,158 5,231 Civilian labor force........................................... 3,216 3,242 3,200 3,158 Participation rate....................................... 64.4 63.5 62.0 60.4 Employed..................................................... 2,419 2,532 2,549 2,530 Employment-population ratio (1).......................... 48.4 49.6 49.4 48.4 Unemployed................................................... 797 709 651 627 Looking for full-time work................................. 636 581 519 473 Looking for part-time work................................. 161 128 132 154 Unemployment rate........................................ 24.8 21.9 20.3 19.9 Not in labor force............................................. 1,777 1,860 1,959 2,073 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 2000-01 (Numbers in thousands. Data are not seasonally adjusted.) Total White Black Industry and class of worker 2000 2001 2000 2001 2000 2001 Total employed................................... 22,368 22,252 18,913 18,781 2,549 2,530 Agriculture ......................................... 688 703 653 678 19 15 Nonagricultural industries........................... 21,680 21,549 18,260 18,103 2,529 2,516 Private wage and salary workers.................... 19,896 19,625 16,783 16,556 2,337 2,250 Mining........................................... 38 58 38 52 - 3 Construction..................................... 1,547 1,539 1,473 1,471 52 37 Manufacturing.................................... 2,088 1,851 1,793 1,597 210 181 Transportation and public utilities.............. 1,018 872 777 691 200 147 Wholesale trade.................................. 669 509 576 441 63 57 Retail trade..................................... 7,387 7,828 6,201 6,541 901 958 Finance, insurance, and real estate.............. 868 1,028 707 861 119 119 Services......................................... 6,281 5,941 5,217 4,901 793 749 Government......................................... 1,514 1,617 1,249 1,289 168 240 Federal.......................................... 193 203 136 160 38 31 State............................................ 547 609 456 471 49 101 Local............................................ 775 805 657 658 81 108 Self-employed and unpaid family workers............ 270 307 228 258 24 25 NOTE: Dash represents zero.