The latest Kids Count report shows fewer American babies are dying, kids are less likely to live in poverty and fewer youngsters are dropping out of school than in the mid-1990s.

The report is sponsored by the Annie E. Casey Foundation.

Despite the improvements in graduation rates, nearly one in six young adults was not enrolled in school, had no job and held no degree beyond a high school diploma in 2002.

That's about 3.8 million Americans from ages 18 to 24. The foundation calls them "disconnected."

On the upside, 21 states and Washington, D.C., improved on at least seven of 10 indicators of child well-being. Thirty-five states and Washington improved on at least six of 10 indicators.

The group said that while the child poverty rate is down in almost every state, the overall rate for the nation is higher than most other developed nations. The rate is below 10 percent in Minnesota and New Hampshire, and above 25 percent in D.C. and New Mexico.

The 10 indicators in the report are:

Percentage of low-birth weight babies
Infant mortality rate
Child death rate
Rate of teen death from accident, homicide or suicide
Teen birth rate
Percentage of high school dropouts
Disconnected teens
Children living in families with no working adult
Percentage of children living in poverty
Single-parent families