While the European paper wasp is commonly known as a yellowjacket, true yellowjackets are a type of hornet. In more specific terms, yellowjackets are members of two genera of wasps (Vespula and Dolichovespula) so, therefore, all yellowjackets are wasps, but not all wasps are yellowjackets. The complete taxonomy of yellowjackets is:

Kingdom: Anamila (animals) > Phylum: Arthropoda (arthropods) > Subphylum: Hexapoda (hexapods) > Class: Insecta (insects) > Order: Hymenoptera (ants, bees, wasps, and sawflies) > Group: Aculeata (ants, bees, and stinging wasps), > Family: Vespidae (yellowjackets and hornets, paper wasps; potter, mason, and pollen wasps) > Subfamily: Vespinae (hornets and yellowjackets) > Genus: Vespula or Dolichovespula (yellowjackets) (Iowa State University Department of Entomology, 2020).

As seen here, wasps are a category that yellowjackets belong to, not their species. There are several different yellowjacket species across North America, but they also appear in Eurasia. When most people think of yellow jackets, they picture the classic yellow with black markings of the genus Vespula. 

Yellowjackets of the genus Vespula are more inclined to nest in holes in the ground, which leads many people to call them “ground bees incorrectly.” Dolichovespula, on the other hand, is more likely to nest in trees, creating large, hanging structures made of a paper-like material created by wasps chewing and spitting out plant matter, especially dry wood.