Unemployment Hammers Younger Workers

"The major reason older workers have a lower unemployment rate is because they're more likely than their younger counterparts to drop out of the labor force [if they can't find a job]," says Rix. "When that happens, they're not counted as unemployed."

Unemployment may also be higher among younger workers because they're not protected from age discrimination under the (ADEA), whereas workers over 40 are.

"Perhaps some employers are less likely to dismiss older workers out of fear of age discrimination lawsuits," notes Hipple.

The good news for younger workers is that they're less likely than older workers to be unemployed for long periods of time. They have the lowest rates of long-term unemployment (unemployed for 27 weeks or more). Older workers age 55 and up are most likely to be and experience the highest rates of long-term unemployment, according to the BLS data.