For release 10:00 a.m. (EDT) Friday, August 27, 2010                    USDL-10-1175

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              EMPLOYMENT AND UNEMPLOYMENT AMONG YOUTH - SUMMER 2010


From April to July 2010, the number of employed youth 16 to 24 years old rose by
1.8 million to 18.6 million, the U.S. Bureau of Labor Statistics reported today.
This year, the share of young people who were employed in July was 48.9 percent,
the lowest July rate on record for the series, which began in 1948. (The month
of July typically is the summertime peak in youth employment.) Unemployment among
youth increased by 571,000 between April and July , about half as much as in
each of the two previous summers. (Because this analysis focuses on the seasonal
changes in youth employment and unemployment that occur each spring and summer, 
the data are not seasonally adjusted.)//YOUTH ZUNI3PO Test 10292020//

Labor force

The youth labor force--16- to 24-year-olds working or actively looking for
work--grows sharply between April and July each year. During these months, large
numbers of high school and college students search for or take summer jobs,
and many graduates enter the labor market to look for or begin permanent employ-
ment. This summer, the youth labor force grew by 2.4 million, or 11.5 percent,
to a total of 22.9 million in July. (See table 1.)

The labor force participation rate for all youth--the proportion of the popula-
tion 16 to 24 years old working or looking for work--was 60.5 percent in July, 
the lowest July rate on record. The July 2010 rate was down by 2.5 percent-
age points from July 2009 and 17.0 percentage points below the peak for that
month in 1989 (77.5 percent).

The July labor force participation rate for 16- to 24-year-old men, at 62.7 
percent, was down by 2.2 percentage points from a year earlier, and the rate for
women, at 58.1 percent, was down by 3.0 percentage points over the year. For
several decades prior to 1989, the July labor force participation rate for young
men showed no clear trend, ranging from 81 to 86 percent. Since July 1989,
however, their participation rate for the month has trended down, falling by about
20 percentage points. The July labor force participation rate for young women
peaked in 1989 at 72.4 percent, following a long-term upward trend; their rate
has since fallen by about 14 percentage points.

The July participation rate for whites declined by 2.8 percentage points from
a year earlier, to 63.2 percent. The rate for blacks, at 51.6 percent, was down
slightly, and the rate for Hispanics, at 56.1 percent, decreased by 3.3 percent-
age points. For all three groups, labor force participation rates were substan-
tially lower than their peaks reached in July 1989. The participation rate for Asian 
youth was 48.3 percent in July 2010, little changed from July 2009. (See table 2.)

Employment

In July, 18.6 million 16- to 24-year-olds were employed. This summer's increase
in youth employment was slightly larger than last year's (1.8 million vs.1.6 million)
and about the same as in 2008. The employment-population ratio for youth--the pro-
portion of the 16- to 24-year-old civilian noninstitutional population that was em-
ployed--was 48.9 percent in July, down 2.5 percentage points from July 2009. The 
ratio has dropped by about 20 percentage points since its peak in July 1989. July 
2010 marks the first time in the history of the series that less than half of all 
youth 16 to 24 years old were employed in that month. The sharp decline in recent 
years reflects continued weak labor market conditions experienced during the reces-
sion that began in December 2007. (See table 2.)

The employment-population ratio for young men was 49.9 percent in July, down 
from 52.2 percent in July 2009. The employment-population ratios for women (48.0 
percent), whites (53.0 percent), and Hispanics (43.6 percent) in July 2010 also
were substantially lower than a year earlier.

In July, 25 percent of employed youth worked in the leisure and hospitality
sector (which includes food services), the same as a year earlier. Another 20 
percent were employed in the retail trade industry, also the same proportion as
a year earlier. (See table 3.)

Unemployment

In July 2010, 4.4 million youth were unemployed, essentially the same as in July 
2009. The youth unemployment rate edged up over the year to 19.1 percent in July
2010, the highest July rate on record for the series, which began in 1948. In
recent years, higher youth unemployment reflects the weak job market. Among major
demographic groups, the unemployment rates for young men (20.5 percent),
blacks (33.4 percent), and Asians (21.6 percent) continued to trend up from a
year earlier; the jobless rates for young women (17.5 percent), whites 
(16.2 percent), and Hispanics (22.1 percent) were virtually unchanged.
(See table 2.)