Fast Facts: Employment rates of young adults (561)

Employment rates of young adults

Question:
What information do you have on the employment rates of young adults?

Response:

This Fast Fact examines recent trends in the employment rate.¹ The employment rate (also known as the employment-to-population ratio) is the percentage of persons in the civilian noninstitutionalized population who are employed.² It is important to note that the reference period for each year of data is March, meaning that 2019 data represent the status of the labor market roughly 1 year before the onset of the coronavirus pandemic in the United States, 2020 data represent the status of the labor market at the onset of the pandemic, and 2021 and 2022 data represent the status of the labor market roughly 1 year and 2 years into the pandemic, respectively. Employment rates for 2023 represent the status of the labor market close to when the federal COVID-19 public health emergency declaration ended.³ Reported levels of educational attainment for 25- to 34-year-olds in this Fast Fact refer to a person’s highest degree earned or level of school completed.

In 2023, some 80 percent of 25- to 34-year-olds were employed. The employment rate was higher for those with higher levels of educational attainment. For example, the overall employment rate was

highest for those with a bachelor’s or higher degree (88 percent); and
lowest for those who had not completed high school (60 percent).

The same pattern was observed for both sexes. For example, the employment rate for females was highest for those with a bachelor’s or higher degree (85 percent) and lowest for those who had not completed high school (42 percent).

The overall employment rate was higher for 25- to 34-year-old males (85 percent) than for their female peers (76 percent) in 2023. This difference in employment rates between males and females is called a gender gap. In 2023, the gender gap existed at each level of educational attainment but was smaller at higher levels of educational attainment. For instance, the gender gap was

smallest for those with a bachelor’s or higher degree (6 percentage points); and
largest for those who had not completed high school (31 percentage points).

From 2013 to 2019 (i.e., prior to the coronavirus pandemic), overall employment for 25- to 34-year-olds increased from 75 percent in 2013 to 79 percent in 2019. During the pandemic—from 2020 through 2023—overall employment for 25- to 34-year-olds was lowest in 2021 (76 percent)⁴. At each level of educational attainment, the employment rates for 25- to 34-year-olds in 2023 were higher than the rates in 2021 and not measurably different from the rates in 2019, the year immediately before the pandemic. For example, among 25- to 34-year-olds whose highest level of educational attainment was high school completion,⁵ employment rates were 74 percent in 2019, then 68 percent in 2021, and 74 percent in 2023.

¹ For general technical notes related to data analysis, data interpretation, rounding, and other considerations, please refer to the Condition of Education Reader’s Guide.
² Data in this Fast Fact are based on sample surveys of the civilian noninstitutionalized population, which excludes persons living in institutions (e.g., prisons or nursing facilities) and all military personnel.
³ The federal COVID-19 public health emergency declaration ended on May 11, 2023.
⁴ Caution should be used when comparing 2019, 2020, and 2021 estimates with those of other years due to the impact that the coronavirus pandemic had on interviewing and response rates. For additional information about the impact of the coronavirus pandemic on the Current Population Survey data collection, please see https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf.
⁵ Refers to those whose highest level of education completed is a high school diploma or an equivalency credential such as a GED.

SOURCE: National Center for Education Statistics. (2024). Employment and Unemployment Rates by Educational Attainment. Condition of Education. U.S. Department of Education, Institute of Education Sciences. Retrieved May 30, 2024, from https://nces.ed.gov/programs/coe/indicator/cbc.

Numbers in figure titles reflect original numeration from source Condition of Education indicators.

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