The Plummeting Labor Market Fortunes of Teens and Young Adults takes a comprehensive look at the state of the job market for America’s youth in the nation’s largest metropolitan areas throughout the 2000s. This report shows that America’s youth have faced a much more difficult time finding jobs throughout the 2000’s than official unemployment rates have indicated. In 2011, 43 percent of teens and 30 percent of young adults were struggling to find their place in the labor market, while the official unemployment rates were much lower at 25 percent and 15 percent respectively for these groups.

1. The Plummeting Labor
Market Fortunes of Teens
and Young Adults
Washington, DC / March 13, 2014
By Andrew Sum, Ishwar Khatiwada, Mykhaylo Trubskyy, and
Martha Ross with Walter McHugh and Sheila Palma

2. 1
Introduction
• The first decade of the 21st century, including the Great
Recession and its aftermath, was disastrous for many
American workers.
• Teens and young adults have been among those hurt most by
shrinking job opportunities.
• Finding a job is a key step in the transition to adulthood and
self-sufficiency.
• This analysis examines labor market outcomes of those aged
16 to 24 in the nation’s 100 largest metropolitan areas.

3. 2
The "Great Age Twist": Employment Increased for Older Workers and
Decreased for Younger Workers
Individuals under
age 54 were less
likely to be working
in 2011 than in 2000,
with the sharpest
declines among
teens and young
adults.
Employment rate = Share of the population that is employed.
Employment Rates by Age, United States, 2000 and 2011

4. 3
Teens Aged 16-19
Finishing high school is the priority for teens, but employment is
a valuable complementary activity.
Most agree that working 15-20 hours a week is unlikely to hurt
academic performance.
This research, and other studies, actually suggest teen work
experience is positively associated with future employment and
earnings.
Since teens and young adults aged 20-24 have differing
employment and educational patterns and expectations, this
study examines each group separately.

5. 4
Teen employment declined 45% between 2000 and 2011, from
44% to 24%.
Employment rates
were highest
among high
school graduates
not enrolled in
post-secondary
education in both
2000 (72%) and
2011 (53%)
Employment Rates of Teens Aged 16-19 in the Nation’s 100 Largest Metropolitan
Areas by Educational Attainment/School Enrollment, 2000 and 2011

6. 5
Teen employment is lowest in households with lower incomes
Only 19% of teens
in households with
annual incomes
below $20,000
worked in a given
month in 2011,
compared to 28%
of teens in
households with
incomes above
$60,000.
Employment Rates of Teens Aged 16-19 in the Nation’s 100 Largest Metropolitan
Areas by Household Income, 2000 and 2011

7. 6
“Labor force underutilization” among teens reveals a bigger
problem than the unemployment rate
Unemployment and Labor Force Underutilization Rates among Teens Aged
16-19 in the Nation’s 100 Largest Metropolitan Areas, 2000 and 2011
Underutilized Labor Force
=
Officially Unemployed
+
Hidden Unemployed
(those who want a job but are
not actively looking)
+
Under-Employed
(those involuntarily working
part-time and available for
full-time work)
The teen unemployment rate in the nation’s 100 largest metropolitan areas nearly doubled,
from 13 to 25%, while the underutilization rate rose from 25 to 43%.

8. 7
The underemployed and hidden unemployed made up more than
half of the teen underutilized labor force in 2011.
48%
Composition of the Underutilized Labor Force among Teens in the
Nation’s 100 Largest Metropolitan Areas, 2011
36%
16%

9. 8
Teen labor force underutilization rates remained highest among
high school dropouts and lowest among college students
Underutilization
rates reached 57%
in 2011 among
those who dropped
out of high school,
considerably higher
than the (already
high) overall teen
underutilization rate
of 43%.
Labor Force Underutilization by Teens Aged 16-19,
Largest 100 Metropolitan Areas, by Race/Ethnicity, 2000 and 2011

10. 9
The share of teens with any paid employment dropped from 55%
in 2000 to 28% in 2011. In other words, year-round teen
joblessness increased from 45 to 72%.
In 2011, about 20% of
Asians, blacks, and
Hispanics worked at
some point during the
previous year,
compared to 35% of
whites. That is, white
teens were 75% more
likely than Asian,
black, and Hispanic
teens to find paid
employment.
Share of Teens Aged 16-19 in the Nation’s 100 Largest Metropolitan Areas with
Paid Employment Experience During the Year, by Race/Ethnicity, 2000 and 2011

11. 10
Teens with higher levels of education continued to have higher
rates of paid employment
In 2011, high school
students had the
lowest rate of paid
employment, at 19%.
Among those not
enrolled in school,
the likelihood of paid
employment rose
steadily with the level
of education.
Share of Teens Aged 16-19 in the Nation’s 100 Largest Metropolitan Areas with
Paid Employment Experience during the Year, by Education, 2000 and 2011

12. 11
As with teens, young adult employment should be considered in
the context of school enrollment. Declining employment can
result from a voluntary withdrawal from the labor force in favor of
post-secondary education rather than simply from reduced
employer demand for labor in a weak economy. Indeed, school
enrollment among young people rose modestly from 2000 to
2011.
However, the magnitude of the disruption in young people’s
employment shown in this analysis is such that additional
schooling is unlikely an adequate explanation, especially given
the high rates of unemployment and underutilization, both of
which signal an interest in working.
Young Adults Aged 20-24

13. 12
The employment rate among young adults fell 17% between 2000
and 2011, from 72 to 60%.
Those with associate or bachelor’s degrees had higher employment rates in both
2000 and 2011 and a much smaller decline than those with less education.
Employment Rates of Young Adults Aged 20-24 in the Nation’s 100 Largest
Metropolitan Areas by Educational Attainment / School Enrollment, 2000 and 2011

14. 13
As with teens, labor force underutilization rates for young adults
are much higher than the official unemployment rate
Unemployment and Labor Force Underutilization Rates among Young Adults
Aged 20-24 in the Nation’s 100 Largest Metropolitan Areas, 2000 and 2011
Both the unemployment and labor force underutilization rates among young adults doubled
between 2000 and 2011. Unemployment rose from 7 to 15%, while the underutilization rate
rose from 14 to 29%.
Underutilized Labor Force
=
Officially Unemployed
+
Hidden Unemployed
(those who want a job but are
not actively looking)
+
Under-Employed
(those involuntarily working
part-time and available for
full-time work)

15. 14
The underemployed and hidden unemployed made up more than half
of the young adult underutilized labor force in 2011.
Composition of the Underutilized Labor Force among Young Adults
Aged 20-24 in the Nation’s 100 Largest Metropolitan Areas, 2011
Officially Unemployed = 49% | Hidden Unemployed = 18% | Underemployed = 33%

16. 15
Young adults with two- or four-year degrees continued to have the
lowest underutilization rates.
Labor Force Underutilization by Young Adults Aged 20-24, Largest 100 Metropolitan
Areas, by Educational Attainment/School Enrollment status, 2000 and 2011
In 2011, labor force
underutilization was
twice as high
among high school
graduates not
enrolled in post-
secondary
education (37%)
than among
Bachelor’s degrees
holders (18%).

17. 16
The share of young adults with any paid employment in a given
year dropped 16% between 2000 and 2011, from 82% to 69%.
Share of Young Adults Aged 20-24 in the Nation’s 100 Largest Metropolitan Areas with
Paid Employment Experience during the Year, by Race and Ethnicity, 2000 and 2011
Whites had the smallest declines and highest rates of previous-year employment in both 2000
and 2011.
In 2011, 40% of black young adults experienced year-round joblessness, as did 33% of
Hispanics and 24% of whites.

18. 17
Young adults with an associate or bachelor’s degrees continued
to have the highest rates of paid employment in a given year.”
Share of Young Adults Aged 20-24 in the Nation’s 100 Largest Metropolitan Areas with
Paid Employment Experience during the Year, by Educational Status, 2000 and 2011
In 2011, only 14% of two or four year degree holders experienced year-round
joblessness, compared to 44% of high school dropouts.

19. 18
While labor market problems affected all young people in the first
decade of the 21st century, non-Hispanic whites, those from higher
income households, those with work experience, and those with higher
levels of education were more successful by the key measures of
employment rates, unemployment rates, labor force underutilization, and
year-round joblessness. In particular, education and previous work
experience were most strongly associated with employment.
These findings point to a clear need for action. While job growth and
increased demand for labor are critical, we can better prepare young
people for the work world by more tightly coupling employer demand
with education and training, integrating work-based learning like
internships, co-ops and apprenticeships into education, and creating
stronger pathways from high school to post-secondary credentials.
Conclusion

20. 19
Recommendations
1. Integrate work-based learning opportunities into high school and college and
expand apprenticeships.
2. Link high school to post-secondary educational credentials.
3. Provide more directed assistance to help young people find employment —
especially non-college bound high school graduates — through strengthened
career and technical education, career counseling, and job
development/placement.
4. Expand opportunities for high school dropouts to earn a diploma or GED, coupled
with access to post-secondary credentials/occupational skills training.
5. Orient career-focused education and training to the regional labor market.
6. To address weak demand for labor, create transitional subsidized jobs programs
for young people to help them support themselves, develop work experience, and
gain a foothold in the labor market.
7. Increase financial incentives for employment through an expanded Earned Income
Tax Credit, specifically targeting younger workers without children.

21. http://www.brookings.edu/metro