A new study from the Public Policy Institute of California finds young Californians are staying in school longer, entering the workforce later, and achieving higher education levels than previous generations.

The report shows over one-third of 24-year-olds born in the late 1990s have earned a bachelor’s degree or higher, up from less than one-fourth of those born a decade earlier. While fewer teens now work during school, the overall share of 24-year-olds in the labor force has remained steady across generations.

About 17% of young adults born in the late 1990s were not working or in school at age 24, down from 22% among those born in the late 1980s. Most eventually re-enter school or work, but roughly 6% of men and 2% of women remain disconnected for consecutive years.

The report attributes these improvements partly to strong economic periods during the 2010s and early 2020s and demographic changes in the state’s younger population. Yet researchers note that young adults are delaying traditional milestones such as marriage, homeownership, and parenthood.

The study also warns that young Californians who enter the labor market during economic downturns can face long-term wage setbacks, underscoring the importance of early job training and workforce programs. The findings suggest California’s workforce health increasingly depends on sustained investment in education and youth engagement as the state faces an aging population and slower labor-force growth.

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