Young adults are staying in school longer and achieving higher levels of education, according to The Economic Milestones of Young Californians, a recent report from the Public Policy Institute of California (PPIC).
The report and accompanying policy brief summarizes trends in educational and economic outcomes for young adults (those ages 16-24) at a time of continued concern for their prospects and provides insights that can inform effective policy decisions. Some factors contributing to the evolving landscape include impacts from the pandemic, the rise of artificial intelligence, an aging population and migration.
“The events of early adulthood can shape a person’s economic opportunities and outcomes; decisions over courses to take in high school, whether to pursue college or work, and whether to start a family lay the foundation for economic outcomes that persist much later in life,” the report states.
PPIC found that many young adults are hitting milestones later in life than their predecessors. “Recent generations live with their parents into their 20s at higher rates and marry and have children at lower rates at all ages than earlier generations. These shifts are not fully explained by demographics and economic conditions,” according to the report.
Other key findings include:
- Fewer teens are working, but by age 24, roughly the same share of young people is in the labor force as other recent generations.
- Lower shares of young adults are not participating in the workforce or school.
- Most of those who aren’t in school or working return to education or work within a year.
- Most improvements observed can be explained by economic conditions and demographic shifts.
According to the brief, economic conditions play a big role in young people staying in school longer and participating in the labor market at higher rates. Policies focused on improving initial job placements and educational opportunities can further recent gains.
“The biggest rise in disconnection happens around the end of high school. Providing personalized academic or behavioral supports may help students finish school, while programs that connect schoolwork with college and career readiness can boost opportunities,” according to the brief. “Job training and workforce development programs, particularly those with integrated support and financial services, have helped connect young adults with the labor market.”
Monitoring long-term data sources such as California’s Cradle to Career Data System may aid in identifying young people at risk of disconnection with school or work opportunities and help build a better understanding of pathways to support their trajectories, the brief concludes.
