1/ Today we look at unemployment rates by age group in 2023, and the data highlights a clear divide between younger workers and the rest of the labor market. The differences are significant and consistent across age categories.
2/ Teenagers aged 16 to 19 recorded an unemployment rate of 11.2 percent, the highest among all groups. Workers aged 20 to 24 followed at 6.7 percent. These figures are substantially higher than those for prime working age adults. By comparison, unemployment among workers aged 25 to 34 stood at 3.5 percent, while those between 35 and 54 remained below 3 percent. The gap suggests that early career workers face greater difficulty entering and stabilizing in the labor market.
3/ Older workers aged 55 and above posted an unemployment rate of 2.9 percent, close to mid career groups. This stability may reflect accumulated experience and stronger labor force attachment. Meanwhile, younger workers often hold temporary or entry level positions that are more sensitive to economic fluctuations.
4/ Remote work may partially reshape these dynamics. Flexible work arrangements can expand job access for younger workers by removing geographic constraints. Remote roles in customer service, digital services, and entry level professional fields may provide alternative entry points. However, remote work may also favor experienced employees who already possess technical skills and established networks.
5/ While the overall unemployment rate remains historically low, the age gap is worth monitoring. If remote opportunities expand equitably, they could help narrow disparities. If not, younger workers may continue to face higher employment volatility compared with older cohorts.
Dataset
Data Source
U.S. Bureau of Labor Statistics (2024). Labor Force Statistics from the Current Population Survey, 2023 Annual Averages.
https://www.bls.gov/cps/