Against this backdrop, young people ages 16 to 24 experienced their steepest decreases in labor force participation and employment; however, in recent years employment levels have steadily been recovering. Some studies have found that early labor market experiences and outcomes have lasting impacts on employability and wages. The report then discusses these data for the post-World War II period, with a focus on trends since 2000, comparing labor force outcomes based on age, sex, and race/ethnicity. Education and Employment Pathways for Young People

For the purposes of this report , youth refers to young people ages 16 through 24. Age

The labor market experiences of youth are different based on their age. Further, the employment-population ratio for young adults generally exhibited a more upward trajectory. The indicators for both age groups began recovering following the 2007 to 2009 recession, with greater gains in the labor force participation rate and employment-population ratio for teens (see Table A-1 and Table A-2 in the Appendix ). In addition, other factors—lower fertility, declines in marriage rates, and increased likelihood of divorce—have played a role in women's increased participation in the labor force, among other factors that are not easy to quantify (e.g., shifts in expectations about roles based on sex). Black and Asian youth had similarly low employment-population ratios relative to their white and Hispanic counterparts. Hispanic and black young adults made inroads in the labor market since the most recent recession (2007-2009), such that Hispanic youth had similar employment-population ratios to white youth and the employment-population ratio for black young adults reached an all-time high of 61% in 2017 (similar, but still higher, to levels in the late 1990s). In general, firms are more likely to hire workers with more experience and availability. The table shows that youth labor force participation rates and the youth employment-population ratio in 2017 were generally lower than in 2000 and 2007; however, the youth unemployment rate was about the same, at 9%, in both 2000 and 2017, suggesting that young people gained some footing in the labor market following the recession. The table also shows the following trends:
Both females and males ages 16 to 24 experienced sharp decreases in their labor force participation rate and employment-population ratios from 2000 to 2017. Labor force participation and employment-population ratios for all racial and Hispanic ethnic groups decreased from 2000 to 2017. The changes in youth labor force participation rates and labor force outcomes from 2014 to 2017 reflected overall improvements in the economy. The first two tables in the Appendix display this same labor force data for youth, as breakouts for teens ages 16 to 19 ( Table A-1 ) and young adults ages 20 to 24 ( Table A-2 ). One major factor is that youth have less education and experience relative to older workers. Youth may also face increased competition for jobs that require less education. Further, a growing number of young people are enrolled in school, particularly post-secondary education, and therefore may be out of the labor force. Their rates of college completion nearly tripled from 2000 to 2016. Additionally, the unemployment rate for females decreased while the unemployment rate for males increased. Findings in this research area have been somewhat mixed. Effects of Youth Labor Force Trends

The effects of decreasing labor force participation and employment among youth have not been fully explored in the research literature. It shows that teens and young adults were withdrawing from the labor force over the time periods discussed, and those in the labor force were less likely to be employed than older workers.
Congress has indicated a strong interest in ensuring that today's 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.
The 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.
Beginning 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%).
Labor 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.
Labor 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.
Decreases 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.
The 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.