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Technical information: (202) 691-6378 http://www.bls.gov/cps/ Media contact: 691-5902 USDL 02-478 For release: 10:00 A.M. EDT Tuesday, August 13, 2002 EMPLOYMENT AND UNEMPLOYMENT AMONG YOUTH--SUMMER 2002 The number of employed youth 16 to 24 years old increased by 2.4 million from April to July, the traditional summertime peak for youth employment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This year's seasonal expansion in youth employment was about the same size as last year's. Nevertheless, the proportion of youth in the labor force this July, 69.5 percent, was down from 70.8 percent last July and was the lowest rate for any July since 1971. The number of unemployed youth rose by 530,000 between April and July 2002; this was larger than the seasonal increases in the prior 3 years. (Because this analysis focuses on the seasonal change in youth employment and unemployment that occurs every spring and summer, the data used are not seasonally adjusted.) Labor Force The youth labor force--16- to 24-year-olds working or actively looking for work--grows sharply between April and July each year as large numbers of high school and college students take or search for summer employment and many recent graduates begin or seek permanent jobs. This summer, the youth labor force rose by 2.9 million to a total of 24.6 million in July. (See table 1.) Although the April-to-July increase in the number of youth in the labor force was about the same as last year, the labor force participation rate for youth--the proportion of their population working or looking for work--declined from 70.8 to 69.5 percent. The over-the-year decrease in labor force participation may be due, in part, to the softness in the labor market in 2002. In addition, declines in participation in recent years may reflect an increase in school enrollment during the summer. In July 2002, 26.0 percent of 16- to 24-year-olds were enrolled in school, up from 16.3 percent in July 1994. About half of the youth enrolled in school in July 2002 were in the labor force compared with three-fourths of those not in school. In July 2002, the labor force participation rate for young men, which has been trending down since 1990, was at its lowest July point on record, 72.2 percent. The July 2002 participation rate for young women (66.7 percent) was relatively unchanged from July 2001. The July 2002 participation rates for both young whites (72.5 percent) and young blacks (57.3 percent) decreased from their July 2001 values. (See table 2.) Employment Nearly 21.6 million youth were employed in July 2002. The employmentpopulation ratio for youth--the proportion of the 16- to 24-year-old civilian noninstitutional population employed--was 60.9 percent. The ratio decreased from its level of 63.5 percent in July 2001 and was the lowest July value since 1971. In July 2002, the employment-population ratios for young men (63.1 percent), young women (58.6 percent), young whites (64.7 percent), and young blacks (44.4 percent) were all lower than in July 2001. - 2 In July 2002, 36 percent of employed youth worked in retail trade (including fast food restaurants) and 27 percent worked in services. Also, large percentages of employed youth worked in government, manufacturing, and construction. (See table 3.) Unemployment Three million youth were unemployed in July 2002; they were not working but were actively looking for work and were available to take a job. The youth unemployment rate was 12.4 percent, up from 10.4 percent in July 2001 and the recent low of 9.6 percent in July 2000. In July 2002, the unemployment rate for young men (12.6 percent), young women (12.2 percent), and young whites (10.7 percent) was higher than in July 2001. The July 2002 rate for young blacks (22.5 percent), however, was little changed from July 2001. (See table 2.) Technical Note The estimates in this release were obtained from the Current Population Survey (CPS), a national sample survey of 60,000 households conducted monthly for the Bureau of Labor Statistics (BLS) by the U.S. Census Bureau. The data in this release relate to the employment status of youth (16- to 24-year-olds) during the months of April-July. This period was selected as being the most representative time frame in which to measure the full summertime transition from school to work. July is the peak summer month of youth employment. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone: 1-800-877-8339. Reliability Statistics based on the CPS are subject to both sampling and nonsampling error. When a sample, rather than the entire population, is surveyed, there is a chance that the sample estimates may differ from the "true" population values they represent. The exact difference, or sampling error, varies depending upon the particular sample selected, and this variability is measured by the standard error of the estimate. There is about a 90-percent chance, or level of confidence, that an estimate based on a sample will differ by no more than 1.6 standard errors from the "true" population value because of sampling error. BLS analyses are generally conducted at the 90-percent level of confidence. The CPS data also are affected by nonsampling error. Nonsampling error can occur for many reasons, including the failure to sample a segment of the population, inability to obtain information for all respondents in the sample, inability or unwillingness of respondents to provide correct information, and errors made in the collection or processing of the data. For a full discussion of the reliability of data from the CPS and information on estimating standard errors, see the "Explanatory Notes and Estimates of Error" section of Employment and Earnings. - 3 Definitions The principal definitions used in this release are described briefly below. Employed persons are (a) all those who, during the survey reference week, did any work at all as paid employees, worked in their own business, profession, or on their own farm, or who worked 15 hours or more as unpaid workers in a family-operated enterprise; and (b) all those who did not work but had jobs or businesses from which they were temporarily absent due to illness, bad weather, vacation, child-care problems, labor disputes or personal reasons, whether or not they were paid by their employers for the time off and whether or not they were seeking other jobs. Unemployed persons are all persons who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4 weeks preceding the survey. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed. Civilian labor force comprises all persons classified as employed or unemployed. Unemployment rate represents the number of unemployed persons as a percent of the civilian labor force. Not in the labor force includes all persons who are not classified as employed or unemployed. Industry and class of worker for the employed relate to the job held in the survey reference week. Persons with two or more jobs are classified in the job at which they worked the greatest number of hours. In terms of classof-worker categories, wage and salary workers are those who receive wages, salaries, commissions, tips, or pay-in-kind from a private employer or from a government unit; self-employed persons are those who work for profit or fees in their own business, profession, or trade, or operate a farm; and unpaid family workers are persons working without pay for 15 hours a week or more in an enterprise operated by a member of their family. Table 1. Employment status of the civilian population 16 to 24 years of age by sex and race, April-July 2002 (Numbers in thousands. Data are not seasonally adjusted.) April-July changes(1) Employment status, sex, and race April May June July Number Percent TOTAL Civilian noninstitutional population................... Civilian labor force................................. Participation rate............................. Employed........................................... Employment-population ratio (2)................ Unemployed......................................... Looking for full-time work....................... Looking for part-time work....................... Unemployment rate................................ Not in labor force................................... 35,390 21,688 61.3 19,169 54.2 2,519 1,732 787 11.6 13,702 35,397 22,121 62.5 19,536 55.2 2,586 1,838 748 11.7 13,276 35,335 24,098 68.2 20,910 59.2 3,188 2,432 756 13.2 11,236 35,450 24,633 69.5 21,584 60.9 3,049 2,254 795 12.4 10,816 60 2,945 8.2 2,415 6.7 530 523 7 .8 -2,885 0.2 13.6 13.4 12.6 12.4 21.0 30.2 .9 6.9 -21.1 17,763 17,768 17,734 17,789 26 .1 Men Civilian noninstitutional population................... Civilian labor force................................. Participation rate............................. Employed........................................... Employment-population ratio (2)................ Unemployed......................................... Looking for full-time work....................... Looking for part-time work....................... Unemployment rate................................ Not in labor force................................... 11,184 63.0 9,797 55.2 1,387 1,012 375 12.4 6,579 11,533 64.9 10,119 57.0 1,414 1,029 385 12.3 6,235 12,517 70.6 10,808 60.9 1,709 1,307 402 13.7 5,217 12,846 72.2 11,232 63.1 1,615 1,172 443 12.6 4,943 1,663 9.2 1,435 7.9 228 160 68 .2 -1,636 14.9 14.6 14.6 14.3 16.4 15.8 18.1 1.6 -24.9 17,627 10,504 59.6 9,372 53.2 1,132 720 413 10.8 7,123 17,629 10,588 60.1 9,417 53.4 1,172 808 363 11.1 7,041 17,601 11,581 65.8 10,102 57.4 1,479 1,125 354 12.8 6,020 17,660 11,787 66.7 10,353 58.6 1,435 1,082 352 12.2 5,873 33 1,283 7.1 981 5.4 303 362 -61 1.4 -1,250 .2 12.2 11.9 10.5 10.2 26.7 50.3 -14.8 13.0 -17.5 28,158 17,993 63.9 16,207 57.6 1,786 1,214 573 9.9 10,165 28,188 18,353 65.1 16,471 58.4 1,882 1,290 592 10.3 9,835 28,218 20,039 71.0 17,786 63.0 2,253 1,668 586 11.2 8,179 28,242 20,472 72.5 18,280 64.7 2,192 1,575 617 10.7 7,770 84 2,479 8.6 2,073 7.1 406 362 44 .8 -2,395 .3 13.8 13.5 12.8 12.3 22.7 29.8 7.7 8.1 -23.6 5,282 2,765 52.4 2,152 40.7 613 441 173 5,287 2,806 53.1 2,233 42.2 573 456 117 5,293 3,032 57.3 2,279 43.1 753 638 114 5,297 3,037 57.3 2,353 44.4 684 560 124 15 272 4.9 200 3.7 71 119 -49 .3 9.8 9.4 9.3 9.1 11.6 27.1 -28.3 Women Civilian noninstitutional population................... Civilian labor force................................. Participation rate............................. Employed........................................... Employment-population ratio (2)................ Unemployed......................................... Looking for full-time work....................... Looking for part-time work....................... Unemployment rate................................ Not in labor force................................... White Civilian noninstitutional population................... Civilian labor force................................. Participation rate............................. Employed........................................... Employment-population ratio (2)................ Unemployed......................................... Looking for full-time work....................... Looking for part-time work....................... Unemployment rate................................ Not in labor force................................... Black Civilian noninstitutional population................... Civilian labor force................................. Participation rate............................. Employed........................................... Employment-population ratio (2)................ Unemployed......................................... Looking for full-time work....................... Looking for part-time work....................... Unemployment rate................................ Not in labor force................................... 22.2 2,517 20.4 2,481 24.8 2,261 22.5 2,260 .3 -256 1.4 -10.2 1 Changes are calculated using unrounded data. 2 Employment as a percent of the civilian noninstitutional population. Table 2. Employment status of the civilian population 16 to 24 years of age by sex and race, July 1999-2002 (Numbers in thousands. Data are not seasonally adjusted.) Employment status, sex, and race 1999 2000 2001 2002 34,000 24,672 72.6 22,178 65.2 2,494 1,888 607 10.1 9,327 34,422 24,748 71.9 22,368 65.0 2,379 1,746 633 9.6 9,674 35,066 24,842 70.8 22,252 63.5 2,591 1,896 694 10.4 10,224 35,450 24,633 69.5 21,584 60.9 3,049 2,254 795 12.4 10,816 17,076 12,975 76.0 11,638 68.2 1,337 1,053 284 10.3 4,102 17,286 13,030 75.4 11,766 68.1 1,264 995 269 9.7 4,256 17,560 13,030 74.2 11,659 66.4 1,372 1,045 327 10.5 4,530 17,789 12,846 72.2 11,232 63.1 1,615 1,172 443 12.6 4,943 TOTAL Civilian noninstitutional population............................. Civilian labor force........................................... Participation rate....................................... Employed..................................................... Employment-population ratio (1).......................... Unemployed................................................... Looking for full-time work................................. Looking for part-time work................................. Unemployment rate.......................................... Not in labor force............................................. Men Civilian noninstitutional population............................. Civilian labor force........................................... Participation rate....................................... Employed..................................................... Employment-population ratio (1).......................... Unemployed................................................... Looking for full-time work................................. Looking for part-time work................................. Unemployment rate.......................................... Not in labor force............................................. Women Civilian noninstitutional population............................. Civilian labor force........................................... Participation rate....................................... Employed..................................................... Employment-population ratio (1).......................... Unemployed................................................... Looking for full-time work................................. Looking for part-time work................................. Unemployment rate.......................................... Not in labor force............................................. 16,923 11,697 69.1 10,540 62.3 1,157 834 323 9.9 5,226 17,136 11,718 68.4 10,603 61.9 1,115 751 364 9.5 5,419 17,506 11,812 67.5 10,593 60.5 1,219 851 368 10.3 5,694 17,660 11,787 66.7 10,353 58.6 1,435 1,082 352 12.2 5,873 27,138 20,425 75.3 18,763 69.1 1,662 1,244 417 8.1 6,713 27,431 20,519 74.8 18,913 68.9 1,606 1,146 459 7.8 6,913 27,892 20,606 73.9 18,781 67.3 1,824 1,322 502 8.9 7,287 28,242 20,472 72.5 18,280 64.7 2,192 1,575 617 10.7 7,770 5,102 3,242 63.5 2,532 49.6 709 581 128 21.9 1,860 5,158 3,200 62.0 2,549 49.4 651 519 132 20.3 1,959 5,231 3,158 60.4 2,530 48.4 627 473 154 19.9 2,073 5,297 3,037 57.3 2,353 44.4 684 560 124 22.5 2,260 White Civilian noninstitutional population............................. Civilian labor force........................................... Participation rate....................................... Employed..................................................... Employment-population ratio (1).......................... Unemployed................................................... Looking for full-time work................................. Looking for part-time work................................. Unemployment rate.......................................... Not in labor force............................................. Black Civilian noninstitutional population............................. Civilian labor force........................................... Participation rate....................................... Employed..................................................... Employment-population ratio (1).......................... Unemployed................................................... Looking for full-time work................................. Looking for part-time work................................. Unemployment rate.......................................... Not in labor force............................................. 1 Employment as a percent of the civilian noninstitutional population. Table 3. Employed persons 16 to 24 years of age by industry, class of worker, and race, July 2001-02 (Numbers in thousands. Data are not seasonally adjusted.) Total White Black Industry and class of worker 2001 2002 2001 2002 2001 2002 Total employed................................... 22,252 21,584 18,781 18,280 2,530 2,353 Agriculture ......................................... Nonagricultural industries........................... Private wage and salary workers.................... Mining........................................... Construction..................................... Manufacturing.................................... Transportation and public utilities.............. Wholesale trade.................................. Retail trade..................................... Finance, insurance, and real estate.............. Services......................................... 703 21,549 19,625 58 1,539 1,851 872 509 7,828 1,028 5,941 783 20,801 18,830 30 1,283 1,595 768 563 7,738 989 5,864 678 18,103 16,556 52 1,471 1,597 691 441 6,541 861 4,901 725 17,555 16,011 30 1,187 1,376 611 480 6,593 823 4,912 15 2,516 2,250 3 37 181 147 57 958 119 749 34 2,318 2,025 80 159 128 64 809 100 685 Government......................................... Federal.......................................... State............................................ Local............................................ 1,617 203 609 805 1,624 219 452 953 1,289 160 471 658 1,247 149 329 769 240 31 101 108 257 57 68 132 Self-employed and unpaid family workers............ 307 347 258 297 25 36 NOTE: Dash represents zero.