Economix Blog: Young and Jobless

CATHERINE RAMPELL

Dollars to doughnuts.

Since 1948, the Labor Department has been keeping track of how many young people find jobs during the summer, when employment of 16-to-24-year-olds typically peaks. Last month, the share of young people who were employed was just 48.8 percent, the lowest July rate on record.

Source: Bureau of Labor Statistics

The youth unemployment rate fell by 1 percentage point over the last year, to 18.1 percent in July 2011 after having hit a record high the year before. But that decline is largely due to having fewer young people look for work.

The labor force participation rate for all young people — that is, the proportion of the population 16 to 24 years old either working or looking for work — was 59.5 percent last month, also the lowest July rate on record.

One takeaway: Youth unemployment is high, but it doesn’t tell the whole story since it leaves out a lot of people who have given up looking for work. Some of those who have dropped out of the labor force (or never entered) are in school, which is good for their careers, and the economy, in the long run. But many aren’t.

Article source: http://feeds.nytimes.com/click.phdo?i=5f03e243e13b86333d01f9a88d71d69b