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About the Author

Emy Sok
Sok.Emy@bls.gov

Emy Sok is an economist in the Office of Employment and Unemployment Statistics, U.S. Bureau of Labor Statistics.

Sean Smith
Smith.Sean@bls.gov

Sean Smith was an economist in the Office of Employment and Unemployment Statistics, U.S. Bureau of Labor Statistics.

John Evans
Evans.John@bls.gov

John Evans is an economist in the Office of Employment and Unemployment Statistics, U.S. Bureau of Labor Statistics.

Article Citations

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Article
September 2025

Unemployment rate increases in the first half of 2024, before leveling off, while the labor force participation rate holds fairly steady

In 2024, the U.S. unemployment rate ended the year at 4.2 percent in the fourth quarter, up from 3.8 percent a year earlier. The employment–population ratio edged down to 59.9 percent, while the labor force participation rate, at 62.5 percent, was little changed over the year. The telework rate, at 23.4 percent, continued to trend up in 2024.

In the fourth quarter of 2024, the U.S. unemployment rate averaged 4.2 percent, higher than the rate of 3.8 percent in the fourth quarter of 2023.1 The number of unemployed people rose to 7.0 million from 6.4 million at the end of 2023.2 Total employment, as measured by the Current Population Survey (CPS), increased in 2024 (after taking into account the latest information on population totals from the U.S. Census Bureau).3 The employment–population ratio, at 59.9 percent in the fourth quarter of 2024, was down slightly over the year, while the labor force participation rate, at 62.5 percent, changed little. (See appendix A for more information about the CPS. See appendix B for more information on the annual adjustments to CPS population controls, including a discussion of new population and labor force estimates introduced in January 2025.)

This article highlights a broad range of economic indicators from the CPS, providing a view of labor market performance in 2024, both overall and for various demographic groups. Updates on trends in usual weekly earnings, labor force flows, and the number of people who were self-employed are included, along with a summary of recent changes in the employment situations of veterans, people with a disability, and the foreign born. The article also presents data on the number of people who teleworked or worked at home for pay in 2024.

The unemployment rate rose in the first half of 2024

In the fourth quarter of 2024, the total number of people who were unemployed was 7.0 million and the unemployment rate was 4.2 percent, up from 6.4 million and 3.8 percent, respectively, a year earlier. Most of the increase in both the number of unemployed and the jobless rate occurred in the first part of the year, continuing trends for these measures that began in the second half of 2023. In the second half of the year, both the unemployment level and rate remained steady. Despite the increase in unemployment in 2024, the jobless rate remained relatively low by historical standards. 

Much of the increase in the number of unemployed in 2024 occurred among women, as is reflected in their unemployment rate, which increased from 3.5 percent to 4.1 percent over the year. The number of unemployed men increased more modestly in 2024, as their jobless rate edged up by 0.2 percentage points to 4.2 percent. (See table 1 and chart 1.)

Table 1. Employment status of the civilian noninstitutional population 16 years and older by sex, race, and Hispanic or Latino ethnicity, quarterly averages, in thousands, seasonally adjusted, 2023–24
CharacteristicFourth quarter, 2023First quarter, 2024Second quarter, 2024Third quarter, 2024Fourth quarter, 2024

Total, 16 years and older

Civilian labor force

167,756167,579167,930168,505168,426

Participation rate (percent)

62.662.662.662.762.5

Employed

161,407161,209161,271161,482161,433

Employmentpopulation ratio

60.360.260.160.159.9

Unemployed

6,3506,3696,6597,0236,993

Unemployment rate (percent)

3.83.84.04.24.2

Men, 16 years and older

Civilian labor force

89,19188,62288,85589,15789,275

Participation rate (percent)

68.167.967.968.068.0

Employed

85,61785,19585,21985,33685,510

Employmentpopulation ratio

65.465.365.265.165.1

Unemployed

3,5743,4273,6363,8203,764

Unemployment rate (percent)

4.03.94.14.34.2

Women, 16 years and older

Civilian labor force

78,56578,95779,07579,34879,152

Participation rate (percent)

57.457.657.557.657.3

Employed

75,79076,01576,05276,14675,923

Employmentpopulation ratio

55.455.455.355.355.0

Unemployed

2,7762,9423,0233,2023,228

Unemployment rate (percent)

3.53.73.84.04.1

White

Civilian labor force

127,552127,233127,561127,971127,761

Participation rate (percent)

62.262.262.262.462.2

Employed

123,193122,891123,086123,167122,990

Employmentpopulation ratio

60.160.060.160.059.8

Unemployed

4,3584,3434,4754,8044,771

Unemployment rate (percent)

3.43.43.53.83.7

Black or African American

Civilian labor force

22,05422,13321,99422,04522,003

Participation rate (percent)

63.363.562.962.962.6

Employed

20,81820,85320,67020,71520,672

Employmentpopulation ratio

59.859.859.159.158.8

Unemployed

1,2361,2801,3241,3301,331

Unemployment rate (percent)

5.65.86.06.06.0

Asian

Civilian labor force

11,47911,49911,73011,73611,758

Participation rate (percent)

64.764.565.365.464.7

Employed

11,10811,15711,33611,27111,318

Employmentpopulation ratio

62.662.663.162.862.3

Unemployed

371342394465440

Unemployment rate (percent)

3.23.03.44.03.7

Hispanic or Latino ethnicity

Civilian labor force

32,10832,44432,85433,11133,152

Participation rate (percent)

66.966.967.467.567.1

Employed

30,57630,87031,23831,36331,438

Employmentpopulation ratio

63.763.764.163.963.7

Unemployed

1,5321,5741,6161,7471,715

Unemployment rate (percent)

4.84.84.95.35.2

Note: Estimates for the above race groups (White, Black or African American, and Asian) do not sum to totals because data are not presented for all races. Persons whose ethnicity is identified as Hispanic or Latino may be of any race. Updated population controls are introduced annually with the release of January data.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

Unemployment rates increased over the year for the major race and ethnicity groups

Unemployment rates increased for all the major race and ethnicity groups in 2024. For people who are White, the unemployment rate rose from 3.4 percent in the fourth quarter of 2023 to 3.7 percent in the fourth quarter of 2024. For people who are Black or African American, whose jobless rates have historically been considerably higher than those for White people, the unemployment rate increased from 5.6 percent in the fourth quarter of 2023 to 6.0 percent in the fourth quarter of 2024. For Asian people, the unemployment rate increased from 3.2 percent to 3.7 percent over the year. Finally, for people who are Hispanic or Latino (who may be of any race), the unemployment rate increased from 4.8 percent in the fourth quarter of 2023 to 5.2 percent in the fourth quarter of 2024. (See table 1 and chart 2.)

Jobless rates across the major age groups in 2024

The unemployment rate for 16- to 24-year-olds increased in 2024. Within this age group, the jobless rate for teenagers (those ages 16 to 19), at 13.1 percent in the fourth quarter of 2024, changed little over the year. The jobless rate for young adults (those ages 20 to 24), which tends to be much lower than the rate for teenagers, rose to 7.7 percent in the fourth quarter, up by 1.0 percentage point from a year earlier. (See table 2.) Among young adults, the unemployment rate for men increased from 7.1 percent to 8.8 percent over the year, while the rate for women increased from 6.3 percent to 6.6 percent.

Table 2. Employment status of the civilian noninstitutional population 16 years and older, by age and sex, quarterly averages, in thousands, seasonally adjusted, 2023–24
CharacteristicFourth quarter, 2023First quarter, 2024Second quarter, 2024Third quarter, 2024Fourth quarter, 2024

Total, 16 to 24 years

Civilian labor force

22,21721,87621,85721,57221,837

Participation rate (percent)

56.456.356.155.355.9

Employed

20,38220,06019,93119,55819,809

Employmentpopulation ratio

51.751.651.250.150.7

Unemployed

1,8351,8161,9262,0152,027

Unemployment rate (percent)

8.38.38.89.39.3

Total, 16 to 19 years

Civilian labor force

6,4916,5066,6106,4016,444

Participation rate (percent)

37.637.137.636.336.5

Employed

5,7035,7305,8075,5275,600

Employmentpopulation ratio

33.032.733.031.431.8

Unemployed

788776803874843

Unemployment rate (percent)

12.111.912.113.713.1

Total, 20 to 24 years

Civilian labor force

15,72615,37115,24715,17115,393

Participation rate (percent)

71.172.171.470.971.8

Employed

14,68014,33014,12414,03014,209

Employmentpopulation ratio

66.467.266.165.566.2

Unemployed

1,0471,0401,1241,1411,184

Unemployment rate (percent)

6.76.87.47.57.7

Total, 25 to 54 years

Civilian labor force

106,819107,114107,466107,951107,563

Participation rate (percent)

83.383.483.683.983.5

Employed

103,372103,615103,853104,129103,724

Employmentpopulation ratio

80.680.780.880.980.5

Unemployed

3,4463,4993,6133,8223,839

Unemployment rate (percent)

3.23.33.43.53.6

Men, 25 to 54 years

Civilian labor force

57,15656,94757,04457,30157,102

Participation rate (percent)

89.289.289.389.689.2

Employed

55,18655,08355,08155,25655,133

Employmentpopulation ratio

86.186.386.286.486.2

Unemployed

1,9701,8631,9642,0441,969

Unemployment rate (percent)

3.43.33.43.63.4

Women, 25 to 54 years

Civilian labor force

49,66250,16750,42150,65150,461

Participation rate (percent)

77.477.678.078.277.8

Employed

48,18648,53248,77248,87348,591

Employmentpopulation ratio

75.175.175.475.474.9

Unemployed

1,4761,6351,6491,7781,870

Unemployment rate (percent)

3.03.33.33.53.7

Total, 55 years and older

Civilian labor force

38,68538,70438,60138,89339,026

Participation rate (percent)

38.638.538.338.538.4

Employed

37,59137,63437,50337,73937,847

Employmentpopulation ratio

37.537.537.237.337.3

Unemployed

1,0931,0701,0981,1541,179

Unemployment rate (percent)

2.82.82.83.03.0

Men, 55 years and older

Civilian labor force

20,78620,76220,60720,81321,015

Participation rate (percent)

44.344.143.643.844.1

Employed

20,17320,16220,01520,15520,352

Employmentpopulation ratio

42.942.842.442.542.7

Unemployed

613600593657663

Unemployment rate (percent)

3.02.92.93.23.2

Women, 55 years and older

Civilian labor force

17,89717,94617,99518,07618,009

Participation rate (percent)

33.633.733.633.733.4

Employed

17,41917,47217,48917,58317,494

Employmentpopulation ratio

32.732.832.732.832.5

Unemployed

478475506493515

Unemployment rate (percent)

2.72.62.82.72.9

Note: Updated population controls are introduced annually with the release of January data.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

The unemployment rate for people ages 25 to 54 (both sexes), at 3.6 percent in the fourth quarter of 2024, was up by 0.4 percentage points over the year. However, the pattern varied by sex: The unemployment rate for men ages 25 to 54, at 3.4 percent in the fourth quarter of 2024, was unchanged over the year, while the rate for women in that age group, at 3.7 percent, increased by 0.7 percentage points. By contrast, in 2023, the unemployment rate for men increased over the year, while the jobless rate for women changed little.4

The unemployment rate for workers age 55 and older was 3.0 percent in the fourth quarter of 2024, little changed from a year earlier. The jobless rates for men (3.2 percent) and women (2.9 percent) in this age group were also little changed over the year.

Jobless rates were up over the year for people with more than a high school education

Among workers age 25 and older, jobless rates are generally higher for people with less formal education, and that continued to be the case in 2024. But the unemployment rate increased over the year for those with more education and changed little or not at all for those with less education. (See chart 3.)

The jobless rate for people with less than a high school diploma—which in recent years has been 2 or 3 times higher than the rate for those with a college degree—was 6.1 percent in the fourth quarter of 2024, unchanged from a year earlier. Similarly, for those with a high school diploma only (no college), the jobless rate was 4.3 percent in the fourth quarter of 2024, little changed from the previous year. By contrast, the unemployment rate for people with some college or an associate’s degree increased by 0.5 percentage points over the year, to 3.5 percent, and the jobless rate for people with a bachelor’s degree and higher—a group that tends to have relatively low unemployment rates—rose by 0.4 percentage points in 2024, to 2.5 percent. (See table 3.)

Table 3. Employment status of the civilian noninstitutional population 25 years and older, by educational attainment, quarterly averages, in thousands, seasonally adjusted, 2023–24
CharacteristicFourth quarter, 2023First quarter, 2024Second quarter, 2024Third quarter, 2024Fourth quarter, 2024

Less than a high school diploma

Civilian labor force

9,4059,1389,0569,2989,118

Participation rate (percent)

47.947.346.648.247.7

Employed

8,8358,6148,5148,6638,565

Employmentpopulation ratio

45.044.643.844.944.8

Unemployed

570524542635553

Unemployment rate (percent)

6.15.76.06.86.1

High school graduates, no college 1

Civilian labor force

35,80436,25436,26436,55235,948

Participation rate (percent)

57.257.156.956.856.9

Employed

34,33334,73734,75435,00534,397

Employmentpopulation ratio

54.954.754.554.454.4

Unemployed

1,4711,5171,5111,5481,551

Unemployment rate (percent)

4.14.24.24.24.3

Some college or associate's degree

Civilian labor force

35,84536,17835,78335,72335,673

Participation rate (percent)

62.363.062.963.262.5

Employed

34,76634,99134,60834,48534,425

Employmentpopulation ratio

60.461.060.861.060.3

Unemployed

1,0791,1871,1751,2381,248

Unemployment rate (percent)

3.03.33.33.53.5

Bachelor's degree and higher 2

Civilian labor force

64,38764,23864,93865,34465,796

Participation rate (percent)

72.672.472.872.972.4

Employed

63,01562,84263,49063,77864,171

Employmentpopulation ratio

71.070.971.271.170.6

Unemployed

1,3711,3961,4471,5661,626

Unemployment rate (percent)

2.12.22.22.42.5

1 This category includes people with a high school diploma or equivalent.

2 This category includes people with bachelor’s, master’s, professional, and doctoral degrees.

Note: Updated population controls are introduced annually with the release of January data.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

The number of people unemployed for 27 weeks or longer increased in 2024

The number of people who were unemployed for 27 weeks or longer increased over the year to 1.6 million in the fourth quarter of 2024, accounting for more than half of the increase in the total number of unemployed people in 2024. The share of those unemployed for 27 weeks or longer increased to 22.8 percent in the fourth quarter of 2024, up from 19.8 percent in the fourth quarter of 2023. (See chart 4.)

At 2.2 million in the fourth quarter of 2024, the number of short-term unemployed people (those who were jobless for less than 5 weeks) changed little over the year. This group accounted for 30.7 percent of all those who were unemployed, down from 34.4 percent in the fourth quarter of 2023. Both the number of people who were unemployed for 5 to 14 weeks and the number who were unemployed for 15 to 26 weeks increased over the year. (See table 4 and chart 4.)

Table 4. Unemployed people, by reason and duration of unemployment, quarterly averages, in thousands, seasonally adjusted, 2023–24
Reason and durationFourth quarter, 2023First quarter, 2024Second quarter, 2024Third quarter, 2024Fourth quarter, 2024

Reason for unemployment

Job losers and persons who completed temporary jobs

3,0743,0993,2083,3673,336

On temporary layoff

899823838953823

Not on temporary layoff

2,1742,2762,3712,4142,513

Permanent job losers

1,5861,6541,7191,6901,800

Persons who completed temporary jobs

589622651724713

Job leavers

817776753839868

Reentrants

1,8021,9202,0372,1152,121

New entrants

609621643671651

Percent distribution:

Job losers and persons who completed temporary jobs

48.848.348.348.147.8

On temporary layoff

14.312.812.613.611.8

Not on temporary layoff

34.535.535.734.536.0

Job leavers

13.012.111.312.012.4

Reentrants

28.629.930.730.330.4

New entrants

9.79.79.79.69.3

Duration of unemployment

Less than 5 weeks

2,1882,2292,2372,3182,158

5 to 14 weeks

1,8971,9242,0072,0602,047

15 weeks or longer

2,2842,1892,3472,6892,829

15 to 26 weeks

1,0269429701,1211,224

27 weeks or longer

1,2581,2461,3781,5671,604

Average (mean) duration in weeks

21.121.120.621.423.4

Median duration, in weeks

9.09.49.29.710.3

Percent distribution:

Less than 5 weeks

34.435.233.932.830.7

5 to 14 weeks

29.830.330.429.129.1

15 weeks or longer

35.934.535.638.140.2

15 to 26 weeks

16.114.914.715.917.4

27 weeks or longer

19.819.720.922.222.8

Note: Updated population controls are introduced annually with the release of January data.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

The median duration of unemployment increased from 9.0 weeks in the fourth quarter of 2023 to 10.3 weeks in the fourth quarter of 2024, reflecting an increase in the number of people who were long-term unemployed (from 1.3 million to 1.6 million). Similarly, the average (mean) duration of unemployment also rose over the year, averaging 23.4 weeks in the fourth quarter of 2024, compared with 21.1 weeks in the fourth quarter of 2023.

Reentrants and permanent job losers contributed to the increase in unemployment in 2024

Unemployed people are grouped into four broad categories by the reasons for their unemployment: (1) those who were on temporary layoff, had permanently lost their job, or had completed a temporary job (referred to as job losers and people who completed temporary jobs); (2) those who voluntarily left their job (job leavers); (3) those who reentered the labor force (reentrants); and (4) those who entered the labor force for the first time (new entrants).

In 2024, the increase in unemployment reflected an increase among the first and third groups—job losers and people who completed temporary jobs, and reentrants. The number of job losers and people who completed temporary jobs increased to 3.3 million in the fourth quarter of 2024, up from 3.1 million in the fourth quarter of 2023. This group accounted for nearly half of the total unemployed at the end of 2024 (47.8 percent). Within this group, the number of permanent job losers rose by 214,000 over the year to 1.8 million, and the number of people on temporary layoff was 823,000 in the fourth quarter of 2024, little changed from the prior year. (See table 4 and chart 5.)

The number of reentrants to the labor force grew by 319,000 to reach 2.1 million in the fourth quarter of 2024; reentrants accounted for 30.4 percent of the total unemployed. The number of new entrants to the labor force was little changed, at 651,000 in the fourth quarter of 2024; new entrants made up 9.3 percent of the unemployed, about the same as a year earlier (9.7 percent).

The number of job leavers—people who voluntarily left their jobs to look for new ones—changed little over the year; there was an average of 868,000 people in this group in the fourth quarter of 2024. Job leavers accounted for 12.4 percent of the total number of unemployed people at the end of 2024.

Unemployment increased across all major occupational groups in 2024

Among the major occupational groups, the unemployment rate for management, professional, and related occupations was the lowest in 2024, as in recent years. The unemployment rate for people in this occupational group was 2.3 percent in 2024, up from 2.0 percent in the prior year. (Data are annual averages.) The jobless rate also increased for people in sales and office occupations, from 3.6 percent in 2023 to 3.9 percent in 2024.

The unemployment rate for service occupations rose from 4.5 percent in 2023 to 5.0 percent in 2024. Within this group, the jobless rate for personal care and service occupations increased by 1.0 percentage point to reach 4.7 percent in 2024.

The unemployment rate for people in natural resources, construction, and maintenance occupations, at 4.9 percent in 2024, was up by 0.5 percentage points from the previous year. The jobless rate for production, transportation, and material moving occupations, at 5.3 percent in 2024, was 0.4 percentage points higher than it was in 2023. (See table 5.)

Table 5. Unemployment rates, by occupational group and sex, annual averages, in percent, 2023–24
Occupational groupTotalMenWomen
20232024Change, 2023–2420232024Change, 2023–2420232024Change, 2023–24

Management, professional, and related occupations

2.02.30.32.02.30.32.02.30.3

Management, business, and financial operations occupations

1.92.20.31.92.30.42.02.20.2

Professional and related occupations

2.02.30.32.12.40.32.02.30.3

Service occupations

4.55.00.54.75.20.54.44.80.4

Healthcare support occupations

3.53.80.33.44.61.23.53.60.1

Protective service occupations

2.93.60.72.63.10.54.04.90.9

Food preparation and serving related occupations

5.76.20.55.86.70.95.65.80.2

Building and grounds cleaning and maintenance occupations

5.25.20.05.45.1-0.35.15.40.3

Personal care and service occupations

3.74.71.03.95.51.63.64.40.8

Sales and office occupations

3.63.90.33.73.70.03.64.00.4

Sales and related occupations

3.94.30.43.43.60.24.45.00.6

Office and administrative support occupations

3.43.50.14.33.7-0.63.13.40.3

Natural resources, construction, and maintenance occupations

4.44.90.54.34.80.56.16.50.4

Farming, fishing, and forestry occupations

7.08.91.96.88.31.57.410.63.2

Construction and extraction occupations

5.45.60.25.35.60.37.15.7-1.4

Installation, maintenance, and repair occupations

2.12.80.72.12.80.72.52.3-0.2

Production, transportation, and material moving occupations

4.95.30.44.74.80.15.46.71.3

Production occupations

3.84.50.73.53.80.34.66.31.7

Transportation and material moving occupations

5.75.80.15.55.4-0.16.27.10.9

Note: The unemployed are classified by occupation according to their last job, which may or may not be similar to the job they are currently seeking.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

All alternative measures of labor underutilization rose in 2024

The U.S. Bureau of Labor Statistics uses CPS data to construct six alternative measures of labor underutilization.5 Known as U-1 through U-6 (U-3 is the official unemployment rate), these measures tend to show similar cyclical patterns but provide additional insight into the degree to which labor resources are being underutilized. (See chart 6.) (See the box note that follows for more information about the six measures of labor underutilization.)

Alternative measures of labor underutilization

Six alternative measures of labor underutilization have long been available from the Current Population Survey. The official concept of unemployment—as measured in the CPS by U-3 in the range of alternative measures (U-1 through U-6)—includes all jobless people who are available to take a job and have actively sought work in the past 4 weeks. The other five measures encompass concepts both narrower (U-1 and U-2) and broader (U-4 through U-6) than the official concept of unemployment. The six measures are defined as follows:

  • U-1: people unemployed 15 weeks or longer, as a percentage of the civilian labor force

  • U-2: job losers and people who completed temporary jobs, as a percentage of the civilian labor force

  • U-3: total unemployed, as a percentage of the civilian labor force (this is the definition used for the official unemployment rate)

  • U-4: total unemployed plus discouraged workers, as a percentage of the civilian labor force plus discouraged workers

  • U-5: total unemployed, plus discouraged workers, plus all other marginally attached workers, as a percentage of the civilian labor force plus all marginally attached workers

  • U-6: total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percentage of the civilian labor force plus all marginally attached workers

Discouraged workers (included in the U-4, U-5, and U-6 measures) are people who are not in the labor force, want and are available for work, and had looked for a job sometime in the prior 12 months. They are not counted as unemployed because they had not actively searched for work in the 4 weeks preceding the survey. Discouraged workers are not currently looking for work because they believe no jobs are available for them or there are none for which they qualify. The marginally attached category (included in the U-5 and U-6 measures) includes discouraged workers. The inclusion criteria for marginally attached workers are the same as those for discouraged workers, except that the marginally attached can cite any reason for their lack of active job search in the prior 4 weeks. People at work part time for economic reasons (included in the U-6 measure) are those working less than 35 hours per week who want to work full time, are available to do so, and give an economic reason for working part time (for example, their hours had been cut back or they were unable to find a full-time job). These individuals are sometimes referred to as involuntary part-time workers.

Each of the six alternative measures of labor underutilization increased from the fourth quarter of 2023 to the fourth quarter of 2024. U-6 rose by 0.6 percentage points to reach 7.7 percent in the fourth quarter of 2024. The fourth quarter rates for U-5 (5.0 percent), U-4 (4.4 percent), and U-3 (4.2 percent) were each up by 0.4 percentage points over the year. U-2, at 2.0 percent in the fourth quarter of 2024, increased by 0.2 percentage points over the year, and U-1, at 1.7 percent, increased by 0.3 percentage points.

Labor force status flows show people were more likely to remain unemployed in 2024

There can be a great deal of underlying movement among people in the major labor force categories in any given month, even if the over-the-month net changes across different labor force statuses are relatively small. These gross movements are captured by data on labor force flows, which show that millions of people move between employment and unemployment each month, while millions of others leave or enter the labor force.6

In 2024, 15.5 million people, or 5.8 percent of the U.S. civilian noninstitutional population age 16 years and older, changed their labor force status in an average month. Examining the current status (employed, unemployed, or not in the labor force) of people who were unemployed in the previous month provides another perspective on the changes in the unemployment picture for 2024.

Historically, unemployed people are more likely to remain unemployed from one month to the next than they are to find employment or to leave the labor force. The likelihood of unemployed people remaining unemployed trended up over the year; this pattern is consistent with the continued moderation in labor market strength in 2024. In December 2024, the share of unemployed people who remained unemployed was 53.9 percent (calculated as a 3-month moving average), 5.2 percentage points higher than its value of 48.7 percent at the end of 2023. In December 2024, 23.7 percent of people who were unemployed a month earlier found work, while 22.4 percent stopped looking for work and left the labor force. A year earlier, these measures were 27.8 percent and 23.4 percent, respectively. (See chart 7.)

Number of people not in the labor force increased in 2024

People who are neither employed nor unemployed are classified as not in the labor force—that is, these individuals are not currently working and have not looked for work in the 4 weeks preceding the survey.7 The number of people who were not in the labor force increased in 2024. Although the majority of people who are not in the labor force do not want a job, a small percentage (5.5 percent in the fourth quarter of 2024) of this group do want a job but had not sought employment in the 4 weeks preceding the survey. The number of people not in the labor force who wanted a job was little changed from a year earlier. (See table 6 and chart 8.)

 
Table 6. Number of people not in the labor force, fourth quarter averages, in thousands, seasonally adjusted, 2020–24
CategoryFourth quarter, 2020Fourth quarter, 2021Fourth quarter, 2022Fourth quarter, 2023Fourth quarter, 2024

Total not in the labor force

100,28799,84799,988100,062101,037

Persons who currently want a job

7,0265,8235,4615,4645,547

Marginally attached to the labor force 1

2,0541,6291,4061,5211,570

Discouraged workers 2

633454396398422

1 Data refer to people who want a job, have searched for work during the prior 12 months, and were available to take a job during the reference week, but had not looked for work in the 4 weeks prior to the survey.

2 Includes those who did not actively look for work in the 4 weeks prior to the survey for reasons such as thinks no work available, could not find work, lacks schooling or training, employer thinks too young or old, and other types of discrimination.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

People who are not in the labor force are considered marginally attached to the labor force if they wanted a job, were available for work, and had looked for work sometime in the prior 12 months (but not in the 4 weeks before the survey). In the fourth quarter of 2024, about 1.6 million people were marginally attached to the labor force, little changed from a year earlier.

A subset of the marginally attached are discouraged workers—people who were not currently looking for work because they believed there were no jobs available for them or none for which they would qualify (i.e., they are discouraged over their job prospects). In the fourth quarter of 2024, there were about 400,000 discouraged workers, little changed from the fourth quarter of 2023. (See table 6 and chart 8.)

These three subsets of people who are not in the labor force—those who currently want a job, the marginally attached, and discouraged workers—increased during the Great Recession and its aftermath and then began to trend downward until early 2020. With the onset of the COVID-19 pandemic, the number of people not in the labor force who wanted a job rose sharply. This increase reflected the impact of the pandemic on the labor market, as mandatory business closures, stay-at-home orders, and fears of contracting the virus kept many people from engaging in labor market activity. The numbers of marginally attached and discouraged workers also rose during this period but have returned to levels similar to what they had been before the pandemic.

Labor force participation rate held fairly steady in 2024, but employment–population ratio declined

The overall labor force participation rate was 62.5 percent in the fourth quarter of 2024, little changed from the previous year. The participation rate remains below its prepandemic value of 63.3 percent in the fourth quarter of 2019. The labor force participation rates for both men and women changed little over the year, at 68.0 percent and 57.3 percent, respectively, in the fourth quarter of 2024.8 (See table 1 and chart 9.)

The total number of employed people increased in 2024, although less than in 2023. (See appendix B for additional information.) The employment–population ratio (the percentage of the population ages 16 and older who are employed) declined over the year to 59.9 percent; the employment–population ratios were down for both men and women.

Labor force participation edged down for people who are Black

The labor force participation rate for people who are Black or African American edged down over the year to 62.6 percent in the fourth quarter of 2024. The participation rates for Whites (62.2 percent) and Asians (64.7 percent) were unchanged over the year, while the rate for Hispanics (67.1 percent) was little changed.

The employment–population ratio for Black or African American people, at 58.8 percent in the fourth quarter of 2024, decreased by 1.0 percentage point over the year. Over the same period, the employment–population ratio for Whites (59.8 percent) edged down, while the ratio for Asians (62.3 percent) was little changed. The employment–population ratio for Hispanics (63.7 percent) was unchanged over the year. (See table 1.)

Labor force participation increased for people ages 25 to 54

The labor force participation rate for workers ages 25 to 54 increased in 2024, averaging 83.5 percent in the fourth quarter. The labor force participation rate for women reached a historic high of 78.2 percent in the third quarter of 2024, before slipping back to 77.8 percent in the fourth quarter, which was still an increase from a year earlier. The participation rate for men in this age group was 89.2 percent in the fourth quarter of 2024, the same as a year earlier. (See table 2.)

Among workers age 55 and older, the labor force participation rate was little changed over the year, averaging 38.4 percent in the fourth quarter of 2024. The share of the population that is age 55 and older is growing, and older people tend to participate in the labor force at much lower rates than younger people do. This is evident from the detailed age categories for older workers—the labor force participation rate for 55- to 64-year-olds, for example, was 65.7 percent in the fourth quarter of 2024, much higher than the rate of 19.8 percent for those age 65 and older. (Data for people ages 55 to 64 and age 65 and older are not seasonally adjusted.)

The labor force participation rate for younger workers (ages 16 to 24) fell to 55.9 percent in the fourth quarter of 2024. As part of an ongoing historical pattern, young adults (ages 20 to 24) participated in the labor force at almost double the rate of teenagers (ages 16 to 19): 71.8 percent versus 36.5 percent, respectively, in the fourth quarter of 2024.

Employment–population ratio declined for younger people

The employment–population ratio for people ages 16 to 24, at 50.7 percent in the fourth quarter of 2024, decreased by 1.0 percentage point over the year. The ratio declined for both workers ages 16 to 19 and those ages 20 to 24.

The employment–population ratio for workers ages 25 to 54 was little changed over the year, at 80.5 percent in the fourth quarter of 2024. Among women ages 25 to 54, the employment–population ratio reached its all-time high of 75.4 percent in the middle of 2024, before declining to 74.9 percent in the fourth quarter, resulting in a slight decrease over the year. The employment–population ratio for men in this age group, at 86.2 percent in the fourth quarter 2024, was little changed over the year.

The employment–population ratio for people age 55 and older was 37.3 percent in the fourth quarter of 2024, down slightly over the year. Within this age group, the men’s employment–population ratio declined, while the women’s ratio was little changed.

The employment–population ratio for people with a bachelor’s degree and higher edged down in 2024

For people age 25 and older, the employment–population ratio for those with less than a high school diploma, at 44.8 percent in the fourth quarter 2024, was little changed over the year. The ratios for high school graduates with no college (54.4 percent) and for those with some college or an associate degree (60.3 percent) were also little changed from the previous year. People with a bachelor’s degree and higher saw a slight decline in their employment–population ratio over the year: from 71.0 in the fourth quarter of 2023 to 70.6 percent in the fourth quarter of 2024. (See table 3.)

The prevalence of self-employment was little changed in 2024

The unincorporated self-employed accounted for 5.8 percent of nonagricultural workers in the fourth quarter of 2024, little changed from the rate of 5.7 percent at the end of 2023. The share of unincorporated self-employed workers experienced a long-term decline, falling from 7.7 percent in the first quarter of 1994 to 5.6 percent in the second quarter of 2019, just before the onset of the pandemic. The percentage of unincorporated self-employed increased briefly at the start of the pandemic before declining to 5.8 percent in the fourth quarter of 2024. (See table 7 and chart 10.)

Table 7. Employed people by class of worker, quarterly averages, in thousands, seasonally adjusted, 2023–24
Class of workerFourth quarter, 2023First quarter, 2024Second quarter, 2024Third quarter, 2024Fourth quarter, 2024

Agriculture and related industries

2,2282,2092,2862,2852,235

Wage and salary workers 1

1,5241,5201,5801,6221,526

Self-employed workers, unincorporated

692661657630697

Nonagricultural industries

159,260158,808159,013159,252159,293

Wage and salary workers 1

150,142149,552149,665149,851150,085

Self-employed workers, unincorporated

9,1089,3259,2379,2949,178

1 Includes self-employed workers whose businesses are incorporated.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

 

Number of involuntary part-time workers rose in 2024

People who work part time for economic reasons, often referred to as involuntary part-time workers, work less than 35 hours per week but would prefer full-time employment. These individuals work a reduced number of hours because of unfavorable business conditions (slack work) or because they cannot find full-time work. The number of involuntary part-time workers averaged around 4.5 million in the fourth quarter of 2024, up from about 4.2 million a year earlier.9 Most of the growth in involuntary part-time workers occurred among those reporting slack work as the reason for working a part-time schedule. (See chart 11.)

Overall, the employment situation for veterans changed little in 2024

There were 17.5 million veterans age 18 and older in the fourth quarter of 2024.10 (Data are not seasonally adjusted.) Veterans who served during World War II, the Korean War, and the Vietnam era make up the largest portion of the veteran population, 5.5 million. The next largest numbers are those who served during Gulf War-era II (5.3 million), followed by Gulf War-era I (2.9 million). About 3.7 million veterans served on active duty during other service periods, mainly between the Korean War and the Vietnam era and between the Vietnam era and Gulf War-era I. Among veterans, women accounted for about 12 percent of the total veteran population in the fourth quarter of 2024.11

The unemployment rate for veterans was 2.8 percent in the fourth quarter of 2024, unchanged from the fourth quarter of 2023; this rate was considerably lower than the rate of 3.9 percent for nonveterans in the fourth quarter of 2024. The jobless rate showed little change among all the service periods. For Gulf War-era II veterans, the unemployment rate was 3.4 percent in the fourth quarter of 2024, little changed from the rate a year earlier. Similarly, the fourth quarter 2024 jobless rates for veterans of Gulf War-era I (1.6 percent), of World War II, the Korean War, and the Vietnam era (1.7 percent), and of other service periods (3.3 percent) were little changed compared with the fourth quarter of 2023.

The labor force participation rate for veterans (48.1 percent) changed little over the year. Labor force participation rates are generally lower for older veterans who served during earlier wartime periods than they are for those who served in the more recent Gulf War-era II period. The labor force participation rate for Gulf War-era I veterans declined by 4.8 percentage points to 68.2 percent in the fourth quarter of 2024. The rate for veterans of other service periods was 40.8 percent, little changed over the year. The labor force participation rate for those who served during World War II, the Korean War, and the Vietnam era—who are all over the age of 65 and accounted for about 32 percent of the veteran population—was little changed, at 13.1 percent in the fourth quarter of 2024. Gulf War-era II veterans, who tend to be younger, had a much higher participation rate, at 78.7 percent, little changed from a year earlier. (See table 8.)

Table 8. Employment status of people 18 years and older, by veteran status, period of service, and sex, quarterly averages, in thousands, not seasonally adjusted, 2023–24
Employment status, veteran status, and period of serviceTotalMenWomen
Fourth quarter, 2023Fourth quarter, 2024Fourth quarter, 2023Fourth quarter, 2024Fourth quarter, 2023Fourth quarter, 2024

Veterans, 18 years and older

Civilian labor force

8,6338,39674327,2111,2021,185

Participation rate (percent)

48.648.147.246.858.857.7

Employed

8,3898,1617,2247,0191,1651,142

Employmentpopulation ratio

47.246.745.945.657.055.5

Unemployed

2452352081923744

Unemployment rate (percent)

2.82.82.82.73.13.7

Gulf War-era II veterans

Civilian labor force

4,0884,1733,3843,475705698

Participation rate (percent)

79.478.780.380.575.470.6

Employed

3,9474,0313,2673,363680668

Employmentpopulation ratio

76.776.077.577.972.867.5

Unemployed

1411421161122530

Unemployment rate (percent)

3.53.43.43.23.54.3

Gulf War-era I veterans

Civilian labor force

2,1181,9741,8051,695313279

Participation rate (percent)

73.068.273.568.670.266.0

Employed

2,0691,9441,7621,675307269

Employmentpopulation ratio

71.367.171.767.868.863.5

Unemployed

49314320611

Unemployment rate (percent)

2.31.62.41.21.93.8

World War II, Korean War, and Vietnam-era veterans

Civilian labor force

7787247586902034

Participation rate (percent)

13.313.113.513.08.014.6

Employed

7597127406771934

Employmentpopulation ratio

13.012.913.212.87.714.6

Unemployed

1813181310

Unemployment rate (percent)

2.41.72.31.8 1  1 

Veterans of other service periods

Civilian labor force

1,6501,5251,4851,351165174

Participation rate (percent)

42.540.842.940.639.542.5

Employed

1,6131,4751,4541,304159171

Employmentpopulation ratio

41.639.542.039.238.241.8

Unemployed

3650314753

Unemployment rate (percent)

2.23.32.13.53.31.6

Nonveterans, 18 years and older

Civilian labor force

156,405157,57180,25980,70976,14676,862

Participation rate (percent)

65.064.972.772.658.458.5

Employed

150,996151,47677,26777,48273,72973,993

Employmentpopulation ratio

62.762.470.069.756.656.3

Unemployed

5,4096,0952,9933,2272,4162,869

Unemployment rate (percent)

3.53.93.74.03.23.7

1 Indicates that there are no data or the data do not meet publication criteria (rates not shown where base is less than 60,000).

Note: Veterans are men and women who previously served on active duty in the U.S. Armed Forces and were not on active duty at the time of the survey. Nonveterans never served on active duty in the U.S. Armed Forces. Veterans could have served anywhere in the world during these periods of service: Gulf War era II (September 2001–present), Gulf War era I (August 1990–August 2001), Vietnam era (August 1964–April 1975), Korean War (July 1950–January 1955), World War II (December 1941–December 1946), and other service periods (all other time periods). Veterans are only counted in one period of service, their most recent wartime period. Veterans who served in both a wartime period and any other service period are classified in the wartime period. 

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

Unemployment rate for people with a disability held fairly steady in 2024

In the fourth quarter of 2024, the unemployment rate for people with a disability was little changed from a year earlier, at 7.3 percent. (Data are not seasonally adjusted.) The jobless rate for people with no disability increased by 0.3 percentage points over the year to 3.7 percent. The unemployment rate of people with a disability remained about twice as high as the rate for those with no disability.

The labor force participation rate for people with a disability reached a series high in the fourth quarter of 2024 (24.8 percent), although it was not markedly different from the rate in the fourth quarter of 2023 (24.5 percent). From 2015 to 2019, the labor force participation rate for people with a disability ranged between 19.2 percent and 21.1 percent; the participation rate trended up in the post-pandemic period. The employment–population ratio for people with a disability (23.0 percent in the fourth quarter) was little changed from a year earlier.

Among those with no disability, the employment–population ratio decreased over the year to 65.4 percent, while the labor force participation rate was little changed, at 67.9 percent. The lower employment–population ratio and labor force participation rate for people with a disability reflect, in part, the older age profile of those with a disability; older people, regardless of disability status, are less likely to engage in labor market activity. (See table 9.)

Table 9. Employment status of the civilian noninstitutional population, by sex, age, and disability status, quarterly averages, in thousands, not seasonally adjusted, 2023–24
Employment status, sex, and agePeople with a disabilityPeople with no disability
Fourth quarter, 2023Fourth quarter, 2024Fourth quarter, 2023Fourth quarter, 2024

Total, 16 years and older

Civilian noninstitutional population

33,79734,581234,021234,882

Civilian labor force

8,2958,576159,175159,584

Participation rate (percent)

24.524.868.067.9

Employed

7,7047,948153,823153,615

Employment–population ratio

22.823.065.765.4

Unemployed

5926285,3525,969

Unemployment rate (percent)

7.17.33.43.7

Men, 16 to 64 years

Civilian labor force

3,5223,70479,12878,717

Participation rate (percent)

42.342.282.682.8

Employed

3,2143,40376,24275,654

Employment–population ratio

38.638.879.579.6

Unemployed

3083012,8863,062

Unemployment rate (percent)

8.88.13.63.9

Women, 16 to 64 years

Civilian labor force

3,3883,42370,02370,467

Participation rate (percent)

39.539.672.873.0

Employed

3,1753,15867,80867,863

Employment–population ratio

37.036.570.570.3

Unemployed

2142642,2152,604

Unemployment rate (percent)

6.37.73.23.7

Total, 65 years and over

Civilian labor force

1,3851,45010,02410,401

Participation rate (percent)

8.28.423.824.0

Employed

1,3151,3879,77310,098

Employment–population ratio

7.88.123.223.3

Unemployed

7063251303

Unemployment rate (percent)

5.04.32.52.9

Note: A person with a disability has at least one of the following conditions: is deaf or has serious difficulty hearing; is blind or has serious difficulty seeing even when wearing glasses; has serious difficulty concentrating, remembering, or making decisions because of a physical, mental, or emotional condition; has serious difficulty walking or climbing stairs; has difficulty dressing or bathing; or has difficulty doing errands alone such as visiting a doctor’s office or shopping because of a physical, mental, or emotional condition. Updated population controls are introduced annually with the release of January data.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

The foreign born continued to participate in the labor force at higher rates than the native born

The foreign born accounted for about 19.2 percent of the U.S. civilian labor force age 16 and older in the fourth quarter of 2024, up from about 18.8 percent a year earlier. (See appendix B for a discussion about recent population control effects.) Unemployment rates increased over the year for both the foreign-born (4.3 percent) and native-born (3.8 percent) populations.12 (Data are not seasonally adjusted.) In 2024, the employment–population ratio for foreign-born people (63.4 percent) was little changed, while the ratio for native-born people fell to 59.2 percent. (See table 10.)

Table 10. Employment status of the foreign- and native-born populations by sex, quarterly averages, in thousands, not seasonally adjusted, 2023–24
Employment status and nativityTotalMenWomen
Fourth quarter, 2023Fourth quarter, 2024Fourth quarter, 2023Fourth quarter, 2024Fourth quarter, 2023Fourth quarter, 2024

Foreign-born population, 16 years and older

Civilian noninstitutional population

47,46648,70023,25423,93824,21124,762

Civilian labor force

31,44532,26917,94418,42913,50113,840

Participation rate

66.266.377.277.055.855.9

Employed

30,28830,88117,27517,75113,01313,130

Employmentpopulation ratio

63.863.474.374.253.753.0

Unemployed

1,1571,388669678489710

Unemployment rate

3.74.33.73.73.65.1

Native-born population, 16 years and older

Civilian noninstitutional population

220,353220,764107,647107,433112,705113,330

Civilian labor force

136,025135,89170,92270,54265,10465,349

Participation rate

61.761.665.965.757.857.7

Employed

131,238130,68268,22267,65063,01663,031

Employmentpopulation ratio

59.659.263.463.055.955.6

Unemployed

4,7875,2092,7002,8912,0872,317

Unemployment rate

3.53.83.84.13.23.5

Note: The foreign born are those residing in the United States who were not U.S. citizens at birth. That is, they were born outside the United States or one of its outlying areas, such as Puerto Rico or Guam, to parents who were not U.S. citizens. This group includes legally admitted immigrants, refugees, students, temporary workers, and undocumented immigrants. The survey data, however, do not separately identify the number of people in these categories. The native born are people who were born in the United States or one of its outlying areas, such as Puerto Rico or Guam, or who were born abroad of at least one parent who was a U.S. citizen.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

The foreign-born population continued to have a higher labor force participation rate (66.3 percent) than did the native-born population (61.6 percent) in 2024. Labor force participation rates for both populations were little changed over the year.

Median weekly earnings of full-time wage and salary workers increased slightly more than inflation did over the year

Median weekly earnings for full-time wage and salary workers were $1,159 in 2024, an increase of 3.8 percent from 2023.13 During the same period, inflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased by 2.9 percent. As a result, real median usual weekly earnings (adjusted with the use of the CPI-U), edged up in 2024, to $369.14 (See table 11.)

Table 11. Median usual weekly earnings of full-time wage and salary workers, by selected characteristics, annual averages, 2023–24
CharacteristicCurrent dollarsConstant (1982–84) dollars
20232024Percent change, 2023–2420232024Percent change, 2023–24

Total, 16 years and older

1,1171,1593.83673690.7

Men

1,2021,2614.93944021.9

Women

1,0051,0433.83303331.0

White

1,1381,1773.43733750.4

Men

1,2251,2885.14024112.2

Women

1,0211,0613.93353380.9

Black or African American

9209594.23023061.3

Men

9701,0023.33183200.5

Women

8899223.72922940.8

Asian

1,4741,5253.54844860.5

Men

1,6351,7265.65375502.5

Women

1,2991,3655.14264352.0

Hispanic or Latino ethnicity

8749023.22872880.4

Men

9159635.23003072.2

Women

8008324.02632650.9

Total, 25 years and older

1,1701,2214.43843901.5

Less than a high school diploma

7087384.22322361.4

High school graduate, no college

8999303.42952970.6

Some college or associate degree

1,0161,0563.93333371.1

Bachelor's degree or higher

1,6091,6925.25285402.3

Source: U.S. Bureau of Labor Statistics, Current Population Survey and Consumer Price Index.

Women’s median weekly earnings were $1,043 in 2024, 82.7 percent of men’s median weekly earnings ($1,261) in the same period. In 1979, the first year for which comparable data on usual weekly earnings are available, women’s earnings represented only 62.3 percent of men’s earnings. (See chart 12.)

Median weekly earnings were highest for men ages 35 to 64. By age group, median weekly earnings were $1,414 for men ages 35 to 44, $1,467 for men ages 45 to 54, and $1,421 for men ages 55 to 64. Women’s median weekly earnings were highest for workers ages 35 to 54. Median weekly earnings were $1,147 for women ages 35 to 44 and $1,166 for women ages 45 to 54. Men and women ages 16 to 24 had the lowest median weekly earnings, $778 and $709, respectively. The difference between men’s and women’s earnings was smaller among younger workers than older workers. For example, women ages 16 to 24 earned 91.1 percent as much as their male counterparts, while women age 65 and over earned 77.3 percent as much as men in that age group. (See chart 13.)

Median weekly earnings increased over the year for all the major race and ethnicity groups. From 2023 to 2024, earnings (in nominal terms) increased by 3.2 percent for Hispanics ($902), 3.4 for Whites ($1,177), 3.5 percent for Asians ($1,525), and 4.2 percent for Blacks ($959). (See table 11.) The women’s-to-men’s earnings ratio varied by race and ethnicity, with the highest ratio occurring among Blacks and Hispanics: White women earned 82.4 percent as much as White men; Black women earned 92.0 percent as much as Black men; Asian women earned 79.0 percent as much as Asian men; and Hispanic women earned 86.4 percent as much as Hispanic men.

Among workers ages 25 years and older, those with a bachelor’s degree or higher level of education had the largest over-the-year increase in median weekly earnings compared with other educational attainment groups. Earnings for workers who held a bachelor’s degree or higher ($1,692) rose by 5.2 percent from 2023 to 2024, while earnings for workers with less than a high school diploma ($738) rose by 4.2 percent. (See table 11.)

Among the major occupational groups, people employed full time in management, professional, and related occupations had the highest median weekly earnings in 2024: $1,879 for men and $1,388 for women. As has historically been the case, men ($834) and women ($713) employed in service occupations earned the least among the major occupational groups in 2024. (See table 12.)

Table 12. Median usual weekly earnings of full-time wage and salary workers by occupation and sex, annual averages, 2023–24
Occupation and sexNumber of workers (in thousands)Median weekly earnings (in U.S. dollars)
2023202420232024Percent change, 2023–24

Total, 16 years and over

120,907120,0531,1171,1593.8

Management, professional, and related occupations

56,07756,0511,5271,5823.6

Management, business, and financial operations occupations

23,98924,0841,6301,7316.2

Professional and related occupations

32,08831,9671,4581,5043.2

Service occupations

15,81815,7077217585.1

Sales and office occupations

21,66721,0669239644.4

Sales and related occupations

9,1488,8951,0011,0464.5

Office and administrative support occupations

12,51912,1718919253.8

Natural resources, construction, and maintenance occupations

11,36811,3871,0011,0424.1

Farming, fishing, and forestry occupations

7317176897163.9

Construction and extraction occupations

6,5176,5189851,0173.2

Installation, maintenance, and repair occupations

4,1204,1521,0921,1505.3

Production, transportation, and material moving occupations

15,97715,8428698912.5

Production occupations

7,3137,0938959223.0

Transportation and material moving occupations

8,6648,7508418622.5

Men, 16 years and over

66,70065,9411,2021,2614.9

Management, professional, and related occupations

27,07026,7461,7781,8795.7

Management, business, and financial operations occupations

12,42512,4121,8681,9062.0

Professional and related occupations

14,64514,3341,7361,8285.3

Service occupations

7,6727,5498018344.1

Sales and office occupations

8,8768,5991,0721,1567.8

Sales and related occupations

5,0995,0211,1961,2645.7

Office and administrative support occupations

3,7773,5789831,0547.2

Natural resources, construction, and maintenance occupations

10,79310,8211,0131,0675.3

Farming, fishing, and forestry occupations

5485597287330.7

Construction and extraction occupations

6,2776,2849911,0223.1

Installation, maintenance, and repair occupations

3,9683,9781,1041,1635.3

Production, transportation, and material moving occupations

12,29012,2269239462.5

Production occupations

5,2775,1879669892.4

Transportation and material moving occupations

7,0137,0398979101.4

Women, 16 years and over

54,20754,1111,0051,0433.8

Management, professional, and related occupations

29,00729,3051,3491,3882.9

Management, business, and financial operations occupations

11,56411,6711,4491,5235.1

Professional and related occupations

17,44317,6341,2781,3193.2

Service occupations

8,1468,1586767135.5

Sales and office occupations

12,79112,4678568944.4

Sales and related occupations

4,0493,8738308806.0

Office and administrative support occupations

8,7438,5938648983.9

Natural resources, construction, and maintenance occupations

5755667348009.0

Farming, fishing, and forestry occupations

18315861468411.4

Construction and extraction occupations

2402357958537.3

Installation, maintenance, and repair occupations

1521748759225.4

Production, transportation, and material moving occupations

3,6883,6167167464.2

Production occupations

2,0361,9067427673.4

Transportation and material moving occupations

1,6511,7106947234.2

Note: Updated population controls are introduced annually with the release of January data.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

Nearly 1 in 4 workers teleworked in 2024

In the fourth quarter of 2024, 36.7 million people teleworked at least some of the time, up from 32.5 million people in the fourth quarter of 2023.15 (Data are not seasonally adjusted.) The telework rate—the number of people who teleworked or worked at home for pay as a percentage of people who were employed and at work—rose over the year, from 20.7 percent in the fourth quarter of 2023 to 23.4 percent in the fourth quarter of 2024. Women were more likely to telework than men (25.8 percent versus 21.2 percent in the fourth quarter of 2024), but the rates increased for both men and women in 2024.

Among those who teleworked in the fourth quarter of 2024, 46.5 percent teleworked for all of their work hours and 53.5 percent teleworked for some of their work hours. A year earlier, 49.3 percent teleworked for all of their work hours. Of the 4.2-million increase in the number of people who teleworked, about three-fourths of the change is attributable to people who teleworked for some, but not all, of their work hours.

The telework rate varies by occupation. Of the five major occupational groups, management, professional, and related occupations had the highest telework rate, at 38.6 percent in the fourth quarter of 2024. Within this group, 69.0 percent of people working in computer and mathematical occupations teleworked for at least some of their work hours; this was the highest telework rate of any detailed occupational group. People working in sales and office occupations had a telework rate of 25.3 percent, which was also higher than the overall rate across all occupations.

The other major occupational groups had much lower telework rates in 2024: service occupations, at 5.7 percent; natural resources, construction, and material moving occupations, at 3.9 percent; and production, transportation, and material moving occupations, at 2.9 percent. In 2024, telework rates tended to increase the most for occupations that already had a high incidence of telework.

Telework rates also differ substantially by educational attainment. Among people with a bachelor’s degree or higher, 40.9 percent teleworked or worked at home for pay in the fourth quarter of 2024, much higher than the rate of 4.0 percent for workers with less than a high school diploma. Over the year, telework rates increased for people with all levels of educational attainment. (See table 13.)

Table 13. People who teleworked or worked at home for pay by selected characteristics, quarterly averages, in thousands, not seasonally adjusted, 2023–24
CharacteristicFourth quarter, 2023Fourth quarter, 2024
TotalTelework Rate 1 TotalTelework Rate 1 

Age and sex

Total, 16 years and over

32,49020.736,69123.4

    16 to 24 years

1,2736.51,3997.3

    25 to 54 years

23,31523.126,32126.0

    55 years and over

7,90121.88,97224.6

Men, 16 years and over

15,74018.917,64321.2

    16 to 24 years

5565.76787.1

    25 to 54 years

11,21620.812,51423.2

    55 years and over

3,96820.44,45122.7

Women, 16 years and over

16,75022.819,04825.8

    16 to 24 years

7177.37217.6

    25 to 54 years

12,09925.813,80729.2

    55 years and over

3,93423.44,52126.7

Race and Hispanic or Latino ethnicity

White

24,72120.628,16423.5

Black or African American

3,26716.23,60317.9

Asian

3,49432.43,63833.4

Hispanic or Latino ethnicity

3,14010.53,72212.1

Disability status

    

With a disability

1,67723.11,93925.9

With no disability

30,81320.634,75223.3

Presence of children

With own children under 18

11,41923.413,09727.1

With no own children under 18

21,07119.523,59421.8

Educational attainment

Total, 25 years and over

31,21722.835,29225.6

    Less than a high school diploma

2252.63334.0

    High school graduates, no college 2

2,5967.83,0529.2

    Some college or associate degree

5,47616.26,35818.9

    Bachelor's degree and higher 3

22,92037.325,55040.9

       Bachelor's degree only

13,47735.914,93139.2

       Advanced degree

9,44339.610,61943.6

Major occupation

Management, professional, and related occupations

24,17435.126,76338.6

Service occupations

1,0384.11,4475.7

Sales and office occupations

6,48922.27,39625.3

Natural resources, construction, and maintenance occupations

3212.35353.9

Production, transportation, and material moving occupations

4682.45512.9

1 The telework rate is the number of people who telework or work at home for pay as a percentage of those who were employed and at work during the survey reference week.

2 Includes persons with a high school diploma or equivalent.

3 Includes persons with bachelor's, master's, professional, and doctoral degrees.

Note: Estimates for the race groups (White, Black or African American, and Asian) do not sum to totals because data are not presented for all races. Persons whose ethnicity is identified as Hispanic or Latino may be of any race. Data are not seasonally adjusted. Updated population controls are introduced annually with the release of January data.

Source: U.S. Bureau of Labor Statistics, Current Population Survey.

Summary

In 2024, the U.S. labor market showed signs of continued moderation. Although the national unemployment rate remained low by historical standards, it increased during the first part of the year before leveling off. At 4.2 percent in the fourth quarter of 2024, the unemployment rate was up 0.4 percentage points from a year earlier. The increase in the unemployment rate in the first part of the year was a continuation of the modest upward movement in the rate that began in mid-2023. Although the labor force participation rate for workers ages 25 to 54 increased in 2024, the overall participation rate was little changed for the year. The employment–population ratio edged down during 2024, as employment growth did not keep pace with the growth in the population. Median usual weekly earnings, after accounting for inflation, edged up in 2024. The prevalence of telework continued to increase in 2024, reaching 23.4 percent in the fourth quarter of the year.

Appendix A: The CPS and the CES

The U.S. Bureau of Labor Statistics (BLS) produces two monthly employment series obtained from two different surveys: an estimate of total nonfarm jobs, derived from the Current Employment Statistics (CES) survey, also called the establishment or payroll survey; and an estimate of total civilian employment, derived from the Current Population Survey (CPS), also called the household survey. The two surveys use different definitions of employment, as well as different survey and estimation methods. The CES survey is a survey of employers that provides a measure of the number of payroll jobs in nonfarm industries. The CPS is a survey of households that provides a measure of employed people age 16 years and older in the civilian noninstitutional population.

Employment estimates from the CPS provide information about workers in both the agricultural and nonagricultural sectors and in all types of work arrangements: workers with wage and salary jobs (including employment in a private household), workers who are self-employed, and workers doing unpaid work for at least 15 hours per week in a business or farm operated by a family member. CES payroll employment estimates are restricted to nonagricultural wage and salary jobs and exclude private household workers. As a result, employment estimates from the CPS are higher than those from the CES survey. In the CPS, however, workers who hold multiple jobs (referred to as “multiple jobholders”) are counted only once, regardless of how many jobs these workers held during the survey reference period. By contrast, because the CES survey counts the number of jobs rather than the number of people, each nonfarm job is counted separately, even when two or more jobs are held by the same person.

The reference periods for the surveys also differ. In the CPS, the reference period is generally the calendar week that includes the 12th day of the month. In the CES survey, employers report the number of workers on their payrolls for the pay period that includes the 12th of the month. Because pay periods vary in length among employers and may be longer than 1 week, the CES employment estimates can reflect longer reference periods.

For more information on the two monthly employment measures, see “Comparing employment from the BLS household and payroll surveys,” Labor Force Statistics from the Current Population Survey (U.S. Bureau of Labor Statistics), https://www.bls.gov/web/empsit/ces_cps_trends.htm.

Appendix B: Adjustments to population estimates for the CPS

Updated population controls for the CPS are introduced annually with the publication of January data in The Employment Situation news release. The analysis presented in this article, which concentrates on labor market developments in 2024, takes into account the population controls introduced in January 2024, especially with respect to changes in the employment situation for major demographic groups. These controls reflected updated birth and death statistics, estimates of net international migration, and methodological improvements that were available at that time.

The January 2024 adjustment decreased the estimated size of the civilian noninstitutional population by 625,000, the civilian labor force by 299,000, employment by 270,000, and unemployment by 28,000. This adjustment did not affect the total unemployment rate, the labor force participation rate, or the employment–population ratio.

For additional information on these population adjustments and their effect on national labor force estimates, see “Adjustments to household survey population estimates in January 2024” (U.S. Bureau of Labor Statistics, February 2024), https://www.bls.gov/cps/methods/population-controls/population-control-adjustments-2024.pdf.

It should be noted, however, that prior to the publication of this article, new population estimates were introduced by the U.S. Census Bureau in December 2024, largely reflecting updated methodology and new information about net immigration. These new population controls, which were incorporated by BLS into CPS estimates for January 2025, resulted in a very large upward shift in the civilian noninstitutional population age 16 and over, indicating that population growth since the 2020 Census was much larger than previously estimated. This upward shift in population weights resulted in substantially higher labor force, employment, and other levels from the CPS. The implication of these fresh population controls is that these labor force measures expanded more than is currently shown in official CPS estimates, particularly during the 2023–24 period.

To the extent possible, these changes were taken into account for the analysis of major CPS measures presented in this article. However, such adjustments are not available for major demographic groups, hence the reliance on January 2024 population controls for this part of the analysis, as mentioned previously. BLS and the Census Bureau are continuing to evaluate the extent to which these new population totals affect CPS estimates. With respect to the Census Bureau’s net international migration estimation methodology, it remains a work in progress. The Census Bureau will continue to develop methodological improvements and incorporate new information on net international migration into future vintage estimates of the population. Questions about the population estimates and the methodology used to develop them should be directed to the Census Bureau.

 

Suggested citation:

Emy Sok, Sean Smith, and John Evans, "Unemployment rate increases in the first half of 2024, before leveling off, while the labor force participation rate holds fairly steady," Monthly Labor Review, U.S. Bureau of Labor Statistics, September 2025, https://doi.org/10.21916/mlr.2025.17

Notes


1 Although data from the Current Population Survey (CPS) are published monthly, the data analyzed in this article are seasonally adjusted quarterly averages, and all over-the-year changes are comparisons of fourth quarter 2023 data with fourth quarter 2024 data, unless otherwise noted.

2 In the CPS, unemployed people are defined as those age 16 and older who were not employed during the survey reference week, had actively searched for work during the 4 weeks prior to the survey, and were available for work. People who were on temporary layoff and available for work are counted as unemployed and do not need to have searched for work.

3 The U.S. Bureau of Labor Statistics (BLS) produces two sets of national employment estimates each month from two different surveys: an estimate of total nonfarm jobs, derived from the Current Employment Statistics (CES) survey, also known as the establishment or payroll survey, and an estimate of total civilian employment, based on the CPS, also called the household survey. The two surveys use different definitions of employment, as well as different survey and estimation methods. For more information on the two monthly employment measures, see appendix A and appendix B of this article and “Comparing employment from the BLS household and payroll surveys,” Labor Force Statistics from the Current Population Survey (U.S. Bureau of Labor Statistics, last modified February 2025), https://www.bls.gov/web/empsit/ces_cps_trends.htm.

4 For more information, see Connor Borkowski, Rifat Kaynas, and Megan Wilkins, “Unemployment rate inches up during 2023, labor force participation rises,” Monthly Labor Review, May 2024, https://doi.org/10.21916/mlr.2024.7.

5 For more information, see Steven E. Haugen, “Measures of labor underutilization from the Current Population Survey,” Working Paper 424 (U.S. Bureau of Labor Statistics, March 2009), https://www.bls.gov/osmr/research-papers/2009/pdf/ec090020.pdf. See also John E. Bregger and Steven E. Haugen, “BLS introduces new range of alternative unemployment measures,” Monthly Labor Review, October 1995, https://www.bls.gov/opub/mlr/1995/10/art3full.pdf.

6 For more information, see “Research series on labor force status flows from the Current Population Survey,” Labor Force Statistics from the Current Population Survey (U.S. Bureau of Labor Statistics, last modified October 8, 2015), www.bls.gov/cps/cps_flows.htm.

7 For more information, see Steven F. Hipple, “People who are not in the labor force: why aren’t they working?,” Beyond the Numbers, December 2015, https://www.bls.gov/opub/btn/volume-4/people-who-are-not-in-the-labor-force-why-arent-they-working.htm. See also Hipple, “Why did labor force nonparticipation increase from 1999 to 2022?,” Monthly Labor Review, September 2024, https://doi.org/10.21916/mlr.2024.17.

8 See Hipple, “People who are not in the labor force,” and Hipple, “Why did labor force nonparticipation increase from 1999 to 2022?”

9 Using CPS data, BLS produces measures of people who are working part time for economic and noneconomic reasons. People who are at work part time for economic reasons, also referred to as involuntary part-time workers, include those who gave an economic reason when asked why they worked 1 to 34 hours during the reference week (generally, the week including the 12th of the month). Economic reasons include the following: slack work, unfavorable business conditions, inability to find full-time work, and seasonal declines in demand. People who usually work part time and were at work part time during the reference week must indicate that they wanted and were available for full-time work to be classified as part time for economic reasons.

10 In the CPS, veterans are defined as men and women ages 18 and over who previously served on active duty in the U.S. Armed Forces and who were civilians at the time the survey was conducted. Veterans are categorized as having served in the following periods of service: (1) Gulf War-era II (September 2001 to the present), (2) Gulf War-era I (August 1990 to August 2001), (3) World War II (December 1941 to December 1946), (4) Korean War (July 1950 to January 1955), (5) Vietnam era (August 1964 to April 1975), and (6) other service periods (all other periods). Veterans who served in more than one wartime period are classified into only the most recent period. Veterans who served in both a wartime period and any other service period are classified in the wartime period.

11 Population controls for veterans are updated periodically and were last updated in January 2023. The latest population controls are from the 2020 Veteran Population Projection Model (VetPop2020). For more information, see “VetPop2020: A Brief Description” (U.S. Department of Veterans Affairs, accessed June 10, 2025), https://www.va.gov/vetdata/docs/Demographics/New_Vetpop_Model/VetPop2020_A_Brief_Description.pdf.

12 Foreign-born people are those who reside in the United States but were born outside the country or outside one of its outlying areas, such as Puerto Rico or Guam, to parents who were not U.S. citizens. Foreign-born people include legally admitted immigrants; refugees; temporary residents, such as students and temporary workers; and undocumented immigrants.

13 Data are annual averages and are in current dollars. The CPS data on earnings represent earnings before taxes and other deductions and include any overtime pay, commissions, or tips typically received. For multiple jobholders, only earnings received at their main job are included. Earnings reported on a nonweekly basis are converted to a weekly equivalent. The term “usual” reflects each survey respondent’s understanding of the term. If the respondent asks for a definition of “usual,” interviewers are instructed to define the term as more than half the weeks worked during the past 4 or 5 months. Wage and salary workers are defined as those who receive wages, salaries, commissions, tips, payment in kind, or piece rates. This definition includes both public- and private-sector employees but excludes all self-employed people, regardless of whether their businesses are incorporated or unincorporated. Earnings comparisons made in this article are on a broad level and do not control for many factors that help explain earnings differences, such as job skills and responsibilities, work experience, and specialization. Finally, full-time workers are those who usually work 35 hours or more per week at their main job.

14 The Consumer Price Index for All Urban Consumers (CPI-U) is used to convert current dollars to constant (1982–84) dollars.

15 Beginning in October 2022, the CPS included questions about telework or work at home for pay; these questions differ from those specifically related to the COVID-19 pandemic that were asked of CPS respondents from May 2020 to September 2022. The new questions are designed to capture telework activity regardless of the reason for that work arrangement.