Demographic Disparities Among Disconnected Young Adults Persist But Are Narrowing Over Time

The issue of opportunity youths—young adults who are neither in school nor working—has been pervasive over the past few decades, although the problem grew more severe during the COVID-19 pandemic. The first article in a two-part series from the Federal Reserve Bank noted how the rate of young adult disconnection ebbs and flows with business cycles as these adults choose to enroll in school or grapple with the realities of the labor market. This second article  illustrates how several demographic groups have differed in their response to business cycles over time and how their disconnection rates have changed in recent years. The inability to reengage these young adults may aggravate economic issues already gaining attention, such as declining enrollment in higher education and languishing labor force participation.