{ "id": "R42519", "type": "CRS Report", "typeId": "REPORTS", "number": "R42519", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 584696, "date": "2018-08-20", "retrieved": "2019-12-20T21:00:11.480257", "title": "Youth and the Labor Force: Background and Trends", "summary": "Congress has indicated a strong interest in ensuring that today\u2019s young people (ages 16 to 24) attain the education and employment experience necessary to make the transition to adulthood as skilled workers and taxpayers. This report provides context for Congress on trends in the labor force for youth. It discusses youth labor force data since 1948, with a focus on the period from 2000 to the present.\nThe labor market experiences of youth ages 16 to 24 have varied based on their age and other factors. Over the post-World War II period, teens ages 16 to 19 generally have had a lower labor force participation rate and employment-population ratio than young adults ages 20 to 24. These two indicators for teens fluctuated from the 1950s through the 1990s, and then began a steady decline before stabilizing in recent years. The labor force participation rate and employment-population ratio for young adults was on an upward trajectory in most years following World War II. This was the result of increases in labor force participation and employment among young women. Both labor force measures declined for young adults in the 2000s. They have ticked back up in recent years, but remain below 2000 levels. \nBeginning in the early 2000s, young people ages 16 to 24 began to experience a more pronounced decline in their labor force participation rate and employment, along with a corresponding increase in unemployment. In 2000, they had a participation rate of nearly 66%, an employment-population ratio of about 60%, and an unemployment rate of 9%. These measures eroded even as the economy grew in the mid-2000s, and then declined further immediately following the recession. Although the labor force situation improved for young people in recent years, their labor force participation rate (56%) and employment-population ratio (50%) in 2017 were lower than in 2000, and their rate of unemployment was about the same (9%).\nLabor force indicators have trended differently for males and females ages 16 to 24. Beginning in the 1970s, the labor force participation rate and employment-population ratio for females increased as they entered the workforce in greater numbers. \nLabor force trends have also been distinct across racial and ethnic groups. Generally, the labor force participation rate and employment-population ratio have been highest for white youth, followed by Hispanic youth. Black and Asian youth have been the least likely to participate in the labor market or to be employed. The 2017 employment-population ratios for youth ages 16 to 24, by race and ethnicity, were as follows: white, 57%; Hispanic, 53%; black, 52%; and Asian, 42%. Black youth have experienced labor force gains in recent years. Education and other factors likely play a role in these labor market outcomes.\nDecreases in labor force participation and the employment-population ratios for young people appear to be due to a confluence of demand and supply factors. On the demand side, youth have less education and experience relative to older workers. Youth may also face increased competition for jobs that require less education. On the supply side, a growing number of young people are enrolled in school, particularly post-secondary education, and thus have competing demands on their time. Overall, firms are more likely to hire workers with greater experience and availability.\nThe changes in the labor market landscape for youth have not been fully explored. Research in this area has hypothesized that reductions in human capital, such as deterioration of skills and foregone work experience, may have lasting impacts on the employability and wages of youth.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R42519", "sha1": "c266428f4b90f1d83679d8e33ddddce341054f18", "filename": "files/20180820_R42519_c266428f4b90f1d83679d8e33ddddce341054f18.html", "images": { "/products/Getimages/?directory=R/html/R42519_files&id=/5.png": "files/20180820_R42519_images_7fa0c32fc87fef1104031fbbb073384084ddd674.png", "/products/Getimages/?directory=R/html/R42519_files&id=/1.png": "files/20180820_R42519_images_6ca74b7a60c5204c36bed0fd8f6f6cde92469b6a.png", "/products/Getimages/?directory=R/html/R42519_files&id=/6.png": "files/20180820_R42519_images_ae6145e69f500b6caa6e9198d4d58411268e02da.png", "/products/Getimages/?directory=R/html/R42519_files&id=/3.png": "files/20180820_R42519_images_5d3d94af4d64e1d62da056e7baec3d45b13e0909.png", "/products/Getimages/?directory=R/html/R42519_files&id=/2.png": "files/20180820_R42519_images_2c9a6d7d65d136c37b465cbb7debb94fc0ba6b31.png", "/products/Getimages/?directory=R/html/R42519_files&id=/7.png": "files/20180820_R42519_images_020d780737d27a44a4e394bfd12d3ef78dbf911f.png", "/products/Getimages/?directory=R/html/R42519_files&id=/0.png": "files/20180820_R42519_images_9561ef50440908d7ae159aaf65067e34ddd63f80.png", "/products/Getimages/?directory=R/html/R42519_files&id=/4.png": "files/20180820_R42519_images_00006ff4a11479b7408fa4b863391e26c3c0f329.png" } }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R42519", "sha1": "1de61fbdae713b9e1b03fe87a8587665800e6f21", "filename": "files/20180820_R42519_1de61fbdae713b9e1b03fe87a8587665800e6f21.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4828, "name": "Workforce & Employment" } ] }, { "source": "EveryCRSReport.com", "id": 441088, "date": "2015-05-07", "retrieved": "2016-04-06T19:06:17.228508", "title": "Youth and the Labor Force: Background and Trends", "summary": "Congress has indicated a strong interest in ensuring that today\u2019s young people\u2014those ages 16 through 24\u2014attain the education and employment experience necessary to make the transition to adulthood as skilled workers and taxpayers. In the wake of the December 2007-June 2009 recession, questions remain about the employment prospects of youth today and the possible effects on their future earnings and participation in the labor market. \nOver the past several years, teens and young adults have experienced a precipitous decline in employment and a corresponding increase in unemployment. In 2000, their employment to population (E/P) ratio\u2014a measure of employed individuals in the labor force\u2014was about 60%. Their E/P ratio steadily eroded even when the economy grew in the mid-2000s. The December 2007-June 2009 recession resulted in record low employment (based on the E/P ratio) for this population.\nSince the official end of the recession, younger workers have continued to fare relatively poorly in the labor market. In 2014, youth ages 16 through 24 had an E/P ratio of 47.6% and a rate of unemployment at 13.4%. This is compared to an E/P ratio of 76.7% and an unemployment rate of 5.2% for workers of prime working age, 25 through 54. Relatively low E/P ratios for young people are likely due to decreasing demand for labor generally and youth foregoing work for higher education. Youth may decide to pursue education because of dismal employment prospects and the growing need for more education to be successful in the labor market. Still, labor market trends have improved over the past few years for both teenagers and young adults.\nThroughout the post-World War II period, the E/P ratio has been highest for white youth, followed by Hispanic youth. Black and Asian youth have been the least likely to be employed. Young black males in particular have had the lowest E/P ratios. For black youth, this is likely due to lower educational attainment. Lower rates of employment for Asian youth are likely attributable to their increasing participation in postsecondary education. \nBeginning in the 1970s, the E/P ratios for women increased as they entered the workforce in greater numbers. The difference between males and females in the E/P ratio for teens and young adults began to narrow in the 1990s, likely due to greater high school and college attainment among females and other factors.\nLower E/P ratios\u2014and simultaneous increases in unemployment\u2014for young people appear to be due to a confluence of factors. Youth have less education and experience relative to older workers. In general, firms are more likely to hire workers with more experience and availability, which puts young workers at a disadvantage. \nThe consequences of decreasing E/P ratios and increasing unemployment among youth have not been fully explored. Preliminary research in this area has hypothesized that reductions in human capital, such as deterioration of skills and foregone work experience, may have lasting impacts on employability and wages of youth. Some studies show that on average, early youth unemployment has negative effects on incomes but not as strong effects on future unemployment; however, youth entering the labor market during severe downturns in the economy appear to have relatively lower wages in the longer term.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R42519", "sha1": "283b2285d3d5e4251314cb1b851c24551bc83e89", "filename": "files/20150507_R42519_283b2285d3d5e4251314cb1b851c24551bc83e89.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R42519", "sha1": "cdbd15b74b793435591108932ae518e95e86a1ae", "filename": "files/20150507_R42519_cdbd15b74b793435591108932ae518e95e86a1ae.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 647, "name": "Employment and Training Policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc807010/", "id": "R42519_2013Jul11", "date": "2013-07-11", "retrieved": "2016-03-19T13:57:26", "title": "Youth and the Labor Force: Background and Trends", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130711_R42519_41930ad8169d5d5828e8d5c0f751f3e851f3da35.pdf" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc86633/", "id": "R42519_2012May10", "date": "2012-05-10", "retrieved": "2012-06-15T10:07:48", "title": "Youth and the Labor Force: Background and Trends", "summary": "This report provides context for policymakers on the youth employment situation. It includes data on labor force participation, employment, and unemployment in the post-World War II period, with a focus on trends since 2000.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120510_R42519_4f23548d2b125926969d2eb8c593fc4c8881ac91.pdf" }, { "format": "HTML", "filename": "files/20120510_R42519_4f23548d2b125926969d2eb8c593fc4c8881ac91.html" } ], "topics": [ { "source": "LIV", "id": "Youth employment", "name": "Youth employment" }, { "source": "LIV", "id": "School-to-work transition", "name": "School-to-work transition" }, { "source": "LIV", "id": "School-to-work transition - Government policy - United States", "name": "School-to-work transition - Government policy - United States" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc809161/", "id": "R42519_2012May04", "date": "2012-05-04", "retrieved": "2016-03-19T13:57:26", "title": "Youth and the Labor Force: Background and Trends", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120504_R42519_36302c77128581ac9e6d919b5c912fb2e64be864.pdf" }, { "format": "HTML", "filename": "files/20120504_R42519_36302c77128581ac9e6d919b5c912fb2e64be864.html" } ], "topics": [] } ], "topics": [ "Domestic Social Policy", "Economic Policy" ] }