Author Archives: hbcumoney

African America’s June Jobs Report – 8.6%

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Overall Unemployment: 4.9% (4.7%)

African America Unemployment: 8.6% (8.2%)

Latino America Unemployment: 5.8% (5.6%)

European America Unemployment: 4.4% (4.1%)

Asian America Unemployment: 3.5% (4.1%)

Previous month in parentheses.

Analysis: Overall unemployment rose 20 basis points. All groups except Asian America saw a rise in their unemployment rate, who saw a 60 basis point decline in their unemployment rate. African America led the way with the largest increase of 40 basis points, followed by European America’s 30 basis points, and Latino America’s 20 basis points.

African American Male Unemployment: 8.2% (7.6%)

African American Female Unemployment: 7.3% (7.4%)

African American Teenage Unemployment: 31.2% (27.1%)

African American Male Participation: 67.8% (67.1%)

African American Female Participation: 60.9% (61.0%)

African American Teenage Participation: 29.2% (28.7%)

Analysis: African American men had a increase of 60 basis points in their unemployment rate, but also experienced a 70 basis point increase in their participation rate. African American women had a decrease of 10 basis points in their unemployment rate, but a 10 basis point decrease in their participation rate. African American teenagers had an increase of 410 basis points in their unemployment rate, but only experienced a 50 basis point increase in their participation rate.

CONCLUSION: The overall economy added 287 000 jobs in June. African America added only 32 000 jobs in June, making May look like an anomaly when African America gained more jobs than the overall economy. It is hard to be overly excited about June’s numbers after May produced only 38 000 jobs overall. A student who gets a 100 and a 0 on test, still has a F average. However, if July delivers a modestly decent number, it could allow the Federal Reserve to put a rate hike back in play for September, which we are still not sure the economy or market is ready for, but desperately needs to heal itself from a decade of fictional interest rates. The fictional interest rates have killed lending and savings and therefore hampered the creation of small business creation in the country. Those are long-term issues though, but issues nonetheless. In the short term, cultural backlash against African America may have some negative labor impact for the rest of the year given African America’s employment dependency on others.

African America needs to create 721 000 jobs to match the nation’s overall unemployment rate.

The HBCUpreneur Corner – Howard University’s Michiel Perry & Black Southern Belle

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Name: Michiel Perry

Alma Mater: Howard University

Business Name & Description:  Black Southern Belle, Lifestyle Brand Focused on Showcasing Weddings, Fashion, Home Decor, Food and all things Southern!

What year did you found your company? 2015

What has been the most exciting and/or fearful moment during your HBCUpreneur career?  Deciding to do Black Southern Belle full time versus part time. I knew this was something that needed a full time role, but I also had a mortgage and a husband. It all worked out, but not without some serious scary days.

What made you want to start your own company? I was planning my wedding in Charleston, SC where I am from and decorating my home in Maryland and looking for lifestyle inspiration that was both African American and Southern. After looking with little success I realized this needed to exist and started Black Southern Belle.

Who was the most influential person/people for you during your time in college? I had a constitutional law professor who went above and beyond. He let me miss classes for internship interviews and even passed along my information to senior level executives. From him I learned the value of helping people who aren’t even asking.

How do you handle complex problems? As I am a hot head, I often handle complex problems by first relaxing and then reaching out to my mom or husband who are much more calm than I am and often view something very differently than I would.

What is something you wish you had known prior to starting your company? To reach out to my personal contacts more. I built a large network from my past careers but was afraid to reach out as to seem like an opportunist, but so many people I reach out to want to help even more than I ever thought they would. If you are genuine about your business and really want to make the relationship mutual most people want to help you row.

Some would say that today’s playing field is more leveled with media companies like yours not having to focus on print and being able to be exclusively digital. Do you think that is true and do you have any plans to do anything with print? I would agree. You can grow your brand digitally pretty quickly, you don’t even need a website at this stage, just a large Facebook or Instagram following can help you grow. Just build an audience and the business will come. I have a tech/digital background. The main print I deal with is stationery. If I did something print it would be a partnership, not just myself. I love paper but not enough to launch a magazine but I appreciate those who fulfill that goal as I have more subscriptions than I like to tell my husband.

Pinterest has had a significant impact on lifestyle sharing and your company is very active there. What do you think has allowed that platform to set itself apart from all others in that respect? I think it grabs your attention and is beautiful. It’s first focus was the beauty and then technology which is rare to see.  Often times tech comes first then aesthetics but Pinterest took a different approach.

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We often talk about the need for African Americans to manufacture more products. Being a lifestyle company affords you all to potentially engage a myriad of products with your own brand attached. Do you think this is something your company will pursue? Or are there other avenues of opportunity that you feel are unexplored by lifestyle companies? I love products and I love supporting small businesses. I currently have a signature product line of select items and would love to grow that business more with partners. I think there are so many opportunities and I am all about partnering to help not only myself but other brands grow.

What do you believe HBCUs can do to spur more innovation and entrepreneurship while their students are in school either as undergraduate or graduate students? I would say they can develop mentoring programs for students who want to be entrepreneurs. Like develop an alum system for entrepreneurs like myself to help current students. I also think adding it to the curriculum is an important thing. We already have the network, just need to utilize it more.

How do you deal with rejection? I have always had roles building partnerships and relationships. Most of the time you hear no. I am very used to it. Often times no is temporary and not because of you but because of other factors. I say no is just for now, not permanent so there is really no true rejection in my opinion just bad timing.

When you have down time how do you like to spend it? Antique shopping and watching historical documentaries. I am a serious history buff.

What was your most memorable HBCU memory? Having a Howard Alum find me on the first day of my internship on Capitol Hill. Howard Alum are crazy and will always find you. I do that now and I hope it makes the students feel as special as I did that day.

In leaving is there any advice you have for budding HBCUpreneurs? Take the risk and do full time if you can. If you can’t, don’t be afraid to outsource some work to keep your business growing. Just because you can’t do it full time doesn’t mean it can’t be done but you should find the resources to move forward.

 

The HBCU Money™ Weekly Market Watch

Our Money Matters /\ June 17, 2016

A weekly snapshot of African American owned public companies and HBCU Money™ tracked African stock exchanges.

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $7.00 (1.60% UP)

M&F Bancorp (MFBP) $3.25 (0.00% UNCH)

Radio One (ROIA) $2.74 (3.86% DN)

African ETFs

Global X MSCI Nigeria (NGE) $5.36 (0.65% DN)

Market Vectors Africa (AFK) $19.87 (2.63% UP)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  309.82 (0.60% DN)

Botswana Stock Exchange (BSE)  10 726.79 (4.89% UP)

Ghana Stock Exchange (GSE)  1 772.12 (11.17% DN)*

Nairobi Stock Exchange (NSE)  147.44 (N/A)

Johannesburg Stock Exchange (JSE) 52 140.61 (0.22% UP)

International Stock Exchanges

New York Stock Exchange (NYSE) 10 360.63 (0.37% UP)

London Stock Exchange (LSE)  3 309.39 (1.41% UP)

Tokyo Stock Exchange (TOPIX)  1 250.83 (0.75% UP)

Commodities

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Unemployment Rate By HBCU State – April 2016

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STATES WITH RISING UNEMPLOYMENT: 9

STATES WITH DECLINING UNEMPLOYMENT: 13

STATES WITH UNCHANGED UNEMPLOYMENT: 2

LOWEST: ARKANSAS & VIRGINIA – 3.9%

HIGHEST – ILLINOIS – 6.6%

STATE – UNEMPLOYMENT RATE (PREVIOUS)*

ALABAMA –  6.1% (6.2%)

ARKANSAS – 3.9% (4.0%)

CALIFORNIA – 5.3% (5.4%)

DELAWARE – 4.2% (4.4%)

DISTRICT OF COLUMBIA – 6.4% (6.5%)

FLORIDA – 4.8% (4.9%)

GEORGIA – 5.5% (5.5%)

ILLINOIS – 6.6% (6.5%)

KENTUCKY – 5.3% (5.6%)

LOUISIANA – 6.3% (6.1%)

MARYLAND – 4.6% (4.7%)

MASSACHUSETTS – 4.2% (4.4%)

MICHIGAN – 4.8% (4.8%)

MISSISSIPPI – 6.0% (6.3%)

MISSOURI –  4.3% (4.2%)

NEW YORK – 4.9% (4.8%)

NORTH CAROLINA – 5.4% (5.5%)

OHIO – 5.2% (5.1%)

OKLAHOMA – 4.5% (4.4%)

PENNSYLVANIA – 5.3% (4.9%)

SOUTH CAROLINA – 5.8% (5.7%)

TENNESSEE – 4.3% (4.5%)

TEXAS – 4.4% (4.3%)

VIRGINIA – 3.9% (4.0%)

*Previous month in parentheses.

African America’s May Jobs Report – 8.2%

jobs

Overall Unemployment: 4.7% (5.0%)

African America Unemployment: 8.2% (8.8%)

Latino America Unemployment: 5.6% (6.1%)

European America Unemployment: 4.1% (4.3%)

Asian America Unemployment: 4.1% (3.8%)

Previous month in parentheses.

Analysis: Overall unemployment drops 30 basis points. All groups saw a drop in their unemployment rate, except for Asian America who saw a 30 basis point increase. African America led the way with the largest decrease of 60 basis points, followed by Latino America’s 50 basis points, and European America’s 20 basis points.

African American Male Unemployment: 7.6% (9.5%)

African American Female Unemployment: 7.4% (6.9%)

African American Teenage Unemployment: 27.1% (26.0%)

African American Male Participation: 67.1% (68.1%)

African American Female Participation: 61.0% (60.2%)

African American Teenage Participation: 28.7% (29.2%)

Analysis:African American men had a decrease of 190 basis points in their unemployment rate, but also experienced a 100 basis point drop in their participation rate. African American women had an increase of 50 basis points in their unemployment rate, but an 80 basis point increase in their participation rate. African American teenagers had an increase of 110 basis points in their unemployment rate, but experienced a 50 basis point drop.

CONCLUSION: The overall economy added 38 000 jobs in May. Repeat, the United States economy added a net of only 38 000 jobs in May. African America added 122 000 jobs in May, an unprecedented moment where African America job growth outpaced the country. The expected job growth for the overall economy was supposed to be 162 000 jobs. This number may put an absolute halt to the Federal Reserve’s hinted expectation of a rate hike in June or July, which many investors have baked into the market. Since HBCU Money inception of the African American Jobs Report never has African America added more jobs than the overall economy. Now that it has, what exactly might this tell us? It may tell us that since African America has the lowest median income of any group of workers, companies are continuing to a lower-skilled workforce in more and more areas. Despite the additional jobs, this number only gets African America back to where it was five months ago when it began a precipitous job decline trend, this obviously putting an abrupt halt to it. It is hard to imagine a scenario where this remains a forward trend, but we will have to wait to see if this month proves to be an outlier all around or perhaps a pivot for African America’s economy, and for once when others are catching a cold, we do not catch pneumonia.