Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 691-6378 USDL 00-243 For release: 10:00 A.M. EDT Media contact: 691-5902 Tuesday, August 22, 2000 EMPLOYMENT AND UNEMPLOYMENT AMONG YOUTH--SUMMER 2000 The number of employed youth 16 to 24 years old increased by nearly 2.2 million between April and July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This year's seasonal expansion in employment of 16- to 24-year-olds brought the employment-population ratio for the group to 65.0 percent, about what it had been in July 1998 and July 1999. The number of unemployed youth normally grows at this time of year as well and this year increased by 469,000. (Because the focus of this analysis is the seasonal changes in youth employment and unemployment that occur every 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 as high school and college students take or search for summer employment. Recent graduates who are looking for more permanent employment also add to this seasonal increase. The April-to-July increase for 2000 was 2.6 million, resulting in a total youth labor force of 24.7 million in July. (See table 1.) The labor force participation rate for youth--the proportion of the youth population working or looking for work--was 71.9 percent in July. Labor force participation for young men each July has been trending down since 1990 and has now reached its lowest point on record, 75.4 percent. The youth labor force participation rates for women (68.4 percent), whites (74.8 percent), and blacks (62.0 percent) were little changed from their July 1999 levels. (See table 2.) Employment Nearly 22.4 million youths were employed this July, representing 65.0 percent of the population of 16- to 24-year-olds. The employment- population ratios for young men (68.1 percent), women (61.9 percent), whites (68.9 percent), and blacks (49.4 percent) were very similar to those in recent years. Almost 9 out of every 10 employed youth were wage and salary workers in the private nonfarm sector in July. Almost 70 percent of this group were employed in either retail trade (7.4 million) or services (6.3 million). The government employed 1.5 million youths this July. Local governments accounted for just over half of these, a slight drop since last year. (See table 3.) - 2 - Unemployment Almost 2.4 million youths were unemployed in July--that is, they were not working, but were actively looking for work and were available to take a job. The youth unemployment rate was 9.6 percent. This is the lowest summer youth unemployment rate since 1969. In July, jobless rates were 9.7 percent for young men, 9.5 percent for women, 7.8 percent for white youth, and 20.3 percent for black youth. These rates were all slightly lower than in 1999, following the downward trend of recent years. Technical Note The estimates in this release were obtained from the Current Population Survey (CPS), a national sample survey of 50,000 households conducted monthly for the Bureau of Labor Statistics (BLS) by the Bureau of the Census. 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 tran- sition from school to work. July is the peak summer month of youth employment. Beginning in January 2000, data reflect revised population controls used in the household survey. For additional information, see "Revisions in the Current Population Survey Effective January 2000" in the February 2000 issue of Employment and Earnings. 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 2000 (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................... 34,372 34,346 34,393 34,422 50 0.1 Civilian labor force................................. 22,101 22,259 24,469 24,747 2,647 12.0 Participation rate............................. 64.3 64.8 71.1 71.9 7.6 11.8 Employed........................................... 20,191 20,078 21,926 22,368 2,177 10.8 Employment-population ratio (2)................ 58.7 58.5 63.8 65.0 6.3 10.6 Unemployed......................................... 1,910 2,181 2,544 2,379 469 24.6 Looking for full-time work....................... 1,272 1,545 1,886 1,746 474 37.2 Looking for part-time work....................... 638 636 658 633 -5 -.7 Unemployment rate.............................. 8.6 9.8 10.4 9.6 1.0 11.2 Not in labor force................................... 12,271 12,087 9,924 9,674 -2,596 -21.2 Men Civilian noninstitutional population................... 17,240 17,251 17,250 17,286 46 .3 Civilian labor force................................. 11,532 11,677 12,868 13,030 1,498 13.0 Participation rate............................. 66.9 67.7 74.6 75.4 8.5 12.7 Employed........................................... 10,480 10,534 11,530 11,766 1,286 12.3 Employment-population ratio (2)................ 60.8 61.1 66.8 68.1 7.3 12.0 Unemployed......................................... 1,052 1,144 1,338 1,264 212 20.2 Looking for full-time work....................... 678 827 1,013 995 317 46.8 Looking for part-time work....................... 374 316 325 269 -105 -28.1 Unemployment rate.............................. 9.1 9.8 10.4 9.7 .6 6.3 Not in labor force................................... 5,707 5,574 4,382 4,256 -1,451 -25.4 Women Civilian noninstitutional population................... 17,132 17,095 17,143 17,136 4 (3) Civilian labor force................................. 10,569 10,582 11,602 11,718 1,149 10.9 Participation rate............................. 61.7 61.9 67.7 68.4 6.7 10.8 Employed........................................... 9,711 9,545 10,396 10,603 891 9.2 Employment-population ratio (2)................ 56.7 55.8 60.6 61.9 5.2 9.2 Unemployed......................................... 858 1,037 1,206 1,115 257 30.0 Looking for full-time work....................... 595 718 872 751 156 26.3 Looking for part-time work....................... 263 320 333 364 101 38.2 Unemployment rate.............................. 8.1 9.8 10.4 9.5 1.4 17.2 Not in labor force................................... 6,563 6,513 5,542 5,419 -1,145 -17.4 White Civilian noninstitutional population................... 27,342 27,369 27,398 27,431 89 .3 Civilian labor force................................. 18,322 18,456 20,303 20,519 2,197 12.0 Participation rate............................. 67.0 67.4 74.1 74.8 7.8 11.6 Employed........................................... 16,941 16,959 18,570 18,913 1,972 11.6 Employment-population ratio (2)................ 62.0 62.0 67.8 68.9 6.9 11.3 Unemployed......................................... 1,380 1,497 1,733 1,606 226 16.3 Looking for full-time work....................... 880 1,057 1,264 1,146 266 30.2 Looking for part-time work....................... 500 440 469 459 -40 -8.2 Unemployment rate.............................. 7.5 8.1 8.5 7.8 .3 3.9 Not in labor force................................... 9,020 8,913 7,095 6,913 -2,108 -23.4 Black Civilian noninstitutional population................... 5,145 5,148 5,153 5,158 14 .3 Civilian labor force................................. 2,868 2,850 3,103 3,200 332 11.6 Participation rate............................. 55.7 55.4 60.2 62.0 6.3 11.3 Employed........................................... 2,407 2,271 2,440 2,549 142 5.9 Employment-population ratio (2)................ 46.8 44.1 47.3 49.4 2.6 5.6 Unemployed......................................... 461 579 663 651 190 41.3 Looking for full-time work....................... 347 422 536 519 172 49.6 Looking for part-time work....................... 114 157 127 132 18 15.9 Unemployment rate.............................. 16.1 20.3 21.4 20.3 4.3 26.6 Not in labor force................................... 2,277 2,298 2,050 1,959 -318 -14.0 1 Changes are calculated using unrounded data. 2 Employment as a percent of the civilian noninstitutional population. 3 Less than 0.05 percent. NOTE: Beginning in January 2000, data reflect revised population controls used in the household survey. Table 2. Employment status of the civilian population 16 to 24 years of age by sex and race, July 1997-2000 (Numbers in thousands. Data are not seasonally adjusted.) Employment status, sex, and race 1997 1998 1999 2000 TOTAL Civilian noninstitutional population............................. 32,803 33,266 34,000 34,422 Civilian labor force........................................... 23,931 24,225 24,672 24,748 Participation rate....................................... 73.0 72.8 72.6 71.9 Employed..................................................... 21,197 21,599 22,178 22,368 Employment-population ratio (1).......................... 64.6 64.9 65.2 65.0 Unemployed................................................... 2,734 2,626 2,494 2,379 Looking for full-time work................................. 2,005 1,910 1,888 1,746 Looking for part-time work................................. 729 716 607 633 Unemployment rate........................................ 11.4 10.8 10.1 9.6 Not in labor force............................................. 8,872 9,041 9,327 9,674 Men Civilian noninstitutional population............................. 16,548 16,779 17,076 17,286 Civilian labor force........................................... 12,653 12,807 12,975 13,030 Participation rate....................................... 76.5 76.3 76.0 75.4 Employed..................................................... 11,207 11,370 11,638 11,766 Employment-population ratio (1).......................... 67.7 67.8 68.2 68.1 Unemployed................................................... 1,446 1,436 1,337 1,264 Looking for full-time work................................. 1,094 1,083 1,053 995 Looking for part-time work................................. 352 353 284 269 Unemployment rate........................................ 11.4 11.2 10.3 9.7 Not in labor force............................................. 3,894 3,973 4,102 4,256 Women Civilian noninstitutional population............................. 16,256 16,487 16,923 17,136 Civilian labor force........................................... 11,278 11,418 11,697 11,718 Participation rate....................................... 69.4 69.3 69.1 68.4 Employed..................................................... 9,990 10,228 10,540 10,603 Employment-population ratio (1).......................... 61.5 62.0 62.3 61.9 Unemployed................................................... 1,289 1,190 1,157 1,115 Looking for full-time work................................. 912 827 834 751 Looking for part-time work................................. 377 363 323 364 Unemployment rate........................................ 11.4 10.4 9.9 9.5 Not in labor force............................................. 4,977 5,068 5,226 5,419 White Civilian noninstitutional population............................. 26,159 26,606 27,138 27,431 Civilian labor force........................................... 19,901 20,028 20,425 20,519 Participation rate....................................... 76.1 75.3 75.3 74.8 Employed..................................................... 17,992 18,343 18,763 18,913 Employment-population ratio (1).......................... 68.8 68.9 69.1 68.9 Unemployed................................................... 1,909 1,685 1,662 1,606 Looking for full-time work................................. 1,412 1,178 1,244 1,146 Looking for part-time work................................. 497 507 417 459 Unemployment rate........................................ 9.6 8.4 8.1 7.8 Not in labor force............................................. 6,258 6,578 6,713 6,913 Black Civilian noninstitutional population............................. 4,958 4,993 5,102 5,158 Civilian labor force........................................... 3,030 3,216 3,242 3,200 Participation rate....................................... 61.1 64.4 63.5 62.0 Employed..................................................... 2,347 2,419 2,532 2,549 Employment-population ratio (1).......................... 47.3 48.4 49.6 49.4 Unemployed................................................... 684 797 709 651 Looking for full-time work................................. 500 636 581 519 Looking for part-time work................................. 183 161 128 132 Unemployment rate........................................ 22.6 24.8 21.9 20.3 Not in labor force............................................. 1,927 1,777 1,860 1,959 1 Employment as a percent of the civilian noninstitutional population. NOTE: Beginning in January 2000, data reflect revised population controls used in the household survey. Table 3. Employed persons 16 to 24 years of age by industry, class of worker, and race, July 1999-2000 (Numbers in thousands. Data are not seasonally adjusted.) Total White Black Industry and class of worker 1999 2000 1999 2000 1999 2000 Total employed................................... 22,178 22,368 18,763 18,913 2,532 2,549 Agriculture ......................................... 763 688 728 653 16 19 Nonagricultural industries........................... 21,415 21,680 18,035 18,260 2,516 2,529 Private wage and salary workers.................... 19,498 19,896 16,436 16,783 2,299 2,337 Mining........................................... 51 38 51 38 - - Construction..................................... 1,310 1,547 1,208 1,473 67 52 Manufacturing.................................... 2,020 2,088 1,668 1,793 253 210 Transportation and public utilities.............. 828 1,018 662 777 134 200 Wholesale trade.................................. 650 669 598 576 28 63 Retail trade..................................... 7,566 7,387 6,535 6,201 766 901 Finance, insurance, and real estate.............. 1,008 868 784 707 176 119 Services......................................... 6,064 6,281 4,930 5,217 874 793 Government......................................... 1,526 1,514 1,232 1,249 200 168 Federal.......................................... 180 193 140 136 25 38 State............................................ 463 547 376 456 59 49 Local............................................ 882 775 717 657 116 81 Self-employed and unpaid family workers............ 392 270 366 228 18 24 NOTE: Beginning in January 2000, data reflect revised population controls used in the household survey. Dash represents zero.