Employment Rate Among American Youth Continues To Drop

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Young people are the future of work, but fewer and fewer of them are actually working. Recent data published by the U.S. Bureau of Labor Statistics (BLS) reveals that employment among youth, those between the ages of 16 and 24, has been on the decline since July 2019. 

According to the report, 55.0% of young individuals were employed in July 2023. This marks a slight dip from the 56.2% recorded in July 2019, data that stems from before the COVID-19 pandemic. The updated July figure, traditionally the peak of youth employment, also showed a minor decline from 55.3% recorded in 2022. 

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The youth unemployment rate in July 2023 was 8.7%, a figure that has remained relatively stable over the years, according to the BLS. This stability is noteworthy, given the shaky economic landscape shaped by the pandemic.  

The labor force participation rate of this age group, which includes those that are employed or unemployed but actively searching for work, was 60.2%. Delving deeper into demographics, the BLS data reveals that White youth held a participation rate of 62.6%, while Asians trailed at 49.8%. Black youth participation stood at 53.5%, and Hispanics at 57.5%. 

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A significant observation is the industry preference among the youth. A quarter of the employed demographic, representing 5.3 million individuals, were engaged in the leisure and hospitality industry. Retail trade attracted 18% of the young workforce, while 13% found roles in education and health services. 

This data is necessary for employers and policymakers as they strategize for the future of the workforce. The evident inclination towards certain sectors, like leisure and hospitality, is reflective of the type of summer jobs most teenagers seek out.  Industries with lower youth participation may need to innovate in their recruitment strategies, offering roles and benefits that resonate with this upcoming demographic. 

The decline in youth employment, even if marginal, signals a potential challenge for the future workforce. As this generation matures, their early employment experiences, or lack thereof, will shape their career trajectories and the broader labor market. Employers must recognize these changing dynamics to ensure that they remain competitive in attracting young talent. 

The willingness of the youth to seek full-time employment, as indicated by 55% of the youth in July 2023, emphasizes the need for quality job opportunities that align with their aspirations. 

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The success of U.S. workforce relies on understanding and addressing current employment trends. As younger demographics transition into the workforce, this creates an opportunity for business and organizations to nurture and expand their talent. 

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