Oregon’s Youth in the Labor Force

June 15, 2026

Two out of five Oregon teens (39.8%) were in the labor force in 2025, above the all-time low of 34% a decade ago in 2015 and 2016 but still well below the 57% labor force participation rate a generation ago in 2000. Labor force participation for those ages 20 to 24 has remained fairly consistent in the 70% to 80% range all the way back to the 1970s.

Youth Unemployment Rates Rose Faster in 2025 Than for Those 25+

Oregon’s unemployment rate increased in 2024 and 2025, and in April 2026 the unemployment rate was 5.2%. The unemployment rate for Oregon’s teens was 16.3% in 2025, up from 9.0% in 2024. Oregon workers ages 20 to 24 had an unemployment rate of 10.5% in 2025, up from 8.8% in 2024. The unemployment rate for those ages 25 and older was 4.4% in 2025, up from 3.4% in 2024.Since the spring of 2020, Oregon’s labor force has been on quite a rollercoaster. It is true for the labor force as a whole, but it is particularly true for Oregon’s youth. During the pandemic recession, unemployment rates skyrocketed in the spring of 2020 as many service sector businesses temporarily closed to reduce the spread of COVID-19. From March to April, Oregon’s unemployment rate jumped 10 percentage points, reaching 13.7%. A large share of younger workers were employed in leisure and hospitality, which lost the most jobs in spring 2020. Nationally, the unemployment rate for teens (ages 16-19) jumped to an all-time high of nearly 33% in April 2020. The unemployment rate was nearly 26% for ages 20 to 24, also an all-time high.

In past recessions, it took a number of years for high unemployment rates to decline. That was not the case after the pandemic recession. Oregon’s unemployment rate started declining during the summer and fall of 2020 as businesses reopened and began hiring. By spring 2021, Oregon’s unemployment rate had already dropped below 6%. The unemployment rate continued to decline and by February 2022 it dropped to 3.7%; just slightly higher than the 3.5% unemployment rate in February 2020, prior to the pandemic. 

The sharp decline in the unemployment rate occurred for youth in the labor force as well. The national unemployment rate for teens (ages 16-19) declined from 32.8% in April 2020 to 9.4% in April 2023. The last time the unemployment rate for teens in the U.S. was below 10% was 1953. Since May 2023, the unemployment rate for those ages 16 to 19 has generally edged up to between 10% and 16%. 

The national unemployment rate for workers ages 20 to 24 was as low as 5.5% in April 2023, but the rate ticked up in 2025. Prior to the recession in February 2020, the unemployment rate for this age group was 6.4%. Even though the unemployment rate is now above its pre-recession level, it is doing much better than in past recoveries. During the Great Recession, the national unemployment rate for those ages 20 to 24 remained above 10% for nearly seven years (80 months). 

Labor Force Participation Rates Rebounded Since 2016

Prior to the recent pandemic recession, youth labor force participation was trending up in recent years, in particular among Oregon’s teens (ages 16-19), reversing what had been a downward slide for over 15 years. Back in 2000, the LFPR of Oregon’s teens was 57%. Since 2000, teens’ LFPR declined until it reached an all-time low of 34% in 2015 and 2016. Since 2016, a strong labor market has helped participation rates trend upward, which has increased teens’ LFPR to a recent high of 43.5% in 2024. In 2025, Oregon’s LFPR for teens declined to 39.8%. Nationally, the LFPR for teens was 36.1% in 2025 down from 36.9% in 2024.Nationally, the LFPR for teens and young adults has remained fairly steady during and following the pandemic recession but did show a decline in 2025. A large number of youth were at least temporarily unemployed, but they did not leave the labor force. We are not witnessing a decline in the participation rate of youth like what occurred during the Great Recession.

As severe as the unprecedented job loss from the pandemic recession was, strong job growth and high demand for workers have occurred much sooner than after other recent recessions. As of January 2023, Oregon regained all of the jobs lost in the spring of 2020, recovering to its pre-pandemic employment level in less than three years. Job vacancies in Oregon have declined since 2023 compared with the high level of vacancies in 2021 and 2022. Oregon’s Office of Economic Analysis is forecasting slow employment growth in Oregon over the next several years, which would mean a lower demand for workers in Oregon.

Potential Challenges Looking Forward

The demand for workers and labor market conditions have declined recently. We will have to see in the coming years if the labor market improves and the demand for workers increases.

Efforts to provide young workers who lack work experience with job opportunities could have a beneficial impact on labor market outcomes and lifetime earnings. Youth need opportunities to gain initial on-the-job experience and be successful in the workplace so they can illustrate those essential skills to later employers.

With Oregon’s job growth slowing down and an economy with a lower demand for workers, the opportunity for young Oregonians is now more uncertain than it was in recent years.