Category Archives: Economics

African America’s June 2020 Jobs Report – 15.4%


African American Unemployment Rate %

OVERALL UNEMPLOYMENT: 11.1% (13.3%)

AFRICAN AMERICAN: 15.4% (16.8%)

LATINO AMERICAN: 14.5% (17.6%)

EUROPEAN AMERICAN: 10.1% (12.4%)

ASIAN AMERICAN: 13.8% (15.0%)

Previous month in parentheses.

Analysis: Every group saw a significant decline in their unemployment rate with Latino Americans having the biggest decline of 310 basis points. Asian Americans had the smallest decline with 120 basis points.

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

AFRICAN AMERICAN MEN: 16.3% (15.5%)

AFRICAN AMERICAN WOMEN: 14.0% (16.5%)

AFRICAN AMERICAN TEENAGE: 23.2% (34.9%)

 

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

AFRICAN AMERICAN MEN: 65.2% (63.9%)

AFRICAN AMERICAN WOMEN: 60.0% (59.9%)

AFRICAN AMERICAN TEENAGE: 30.4% (32.7%)

 

Analysis: African American Women had a significant change in their unemployment rate with a 250 basis point drop in their unemployment rate with a negligible change in their participation rate. African American Men saw a 80 basis point increase in their unemployment rate, but also experienced a significant 130 basis point increase in their participation rate. African American Teenagers always the most volatile group historically saw their unemployment rate drop by a staggering 1,170 basis points, but it seems like it woas  also saw their participation rate rise by 750 basis points on the back of a strong 110,000 jobs added in May.

African American Men-Women Job Gap: African American women currently have 1,023,000 more jobs than African American men in June. This is a increase from 843,000 in May.

CONCLUSION: Wall Street continues on a unprecedented tear and Main Street is building an economic mansion, but unsure whether they are on solid dirt of loose sand – maybe even quicksand. The economy added a jaw dropping 4.8 million job in the month of June, African Americans managed to add 404,000 jobs or 8.4 percent of the job total after comprising 11.3 percent in May. The Main Street economy, where the majority of African America’s financial reality resides is still waiting to see what the Federal government will do when it comes to unemployment benefits and other fiscal stimulus. If the Republicans allow the benefits to lapse believing the economy is truly roaring back on its own versus being propped up it could be as disastrous as the states who opened up prematurely and are now facing an uphill battle to constrain the virus again. Banks have offered extensions on mortgage relief for another three months so that may ease some of the pain along with allowing the amounts to be added onto the back end of the mortgage which had been a huge concern among many. This has provided an indirect stimulus to many households, but very little to African Americans who are the lowest home ownership group.

African America currently needs 862,000 jobs to match America’s unemployment rate.

African America’s May 2020 Jobs Report – 16.8%


African American Unemployment Rate %

Overall unemployment: 13.3% (14.7%)

African American: 16.8% (16.7%)

Latino American: 17.6% (18.9%)

European American: 12.4% (14.2%)

Asian American: 15.0% (14.5%)

Previous month in parentheses.

Analysis: Overall unemployment dropped by 140 basis points. African American unemployment rate change was negligible. Latino and European Americans both saw considerable decreases in their unemployment rate. Asian America saw the only significant increase of 50 basis points.

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

African American Men: 15.5% (16.1%)

African American women: 16.5% (16.4%)

African American Teenage: 34.9% (28.0%)

 

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

African American Men: 63.9% (63.4%)

African American women: 59.9% (59.4%)

African American Teenage: 32.7% (25.2%)

 

Analysis: African American Women saw little change in their unemployment, but did see a 50 basis point increase in participation rate as they added 75,000 jobs in May. African American Men saw a 60 basis point decrease in their unemployment rate and like African American Women saw a 50 basis point increase in their participation rate with 135,000 jobs in May. African American Teenagers always the most volatile group historically saw their unemployment rate rise by 690 basis points, but also saw their participation rate rise by 750 basis points on the back of a strong 110,000 jobs added in May.

African American Men-Women Job Gap: African American women currently have 843,000 more jobs than African American men in May. This is a decrease from 903,000 in April.

CONCLUSION: With the Wall Street roaring back, many would presume this to be a huge boom for Main Street. Unfortunately, despite the economy seeing a 2.5 million job increase in the month of May, African Americans managed to add 283,000 jobs or just 11.3 percent of the job total. The Main Street economy, where the majority of African America’s financial reality resides is on very shaky ground. Few economist believe that the economy which has been on lock down due to the pandemic could, would, or will bounce back quickly. For many, it feels like more illusion. Half of all Americans do not have enough savings for a $400 emergency, let alone a pandemic that forced many to sit home with no pay aside from the White House’s $1,200 stimulus, which may see a round two as the president hopes to be in citizens favor closer to election. There is also massive social unrest as well gripping the country, but Wall Street has decided the effects are minimal on the economic engine. We shall see.

African America currently needs 693,000 jobs to match America’s unemployment rate.

 

Fastest Growing & Highest Paying Jobs By Bachelors, Masters, & PhD/Professional


Despite the ongoing student loan crisis at the moment, the statistics of jobs that pay well still demand a college degree. Now, where a college degree comes from, what the economy of your geographic region leans on, and a whole host of other factors certainly play a role. Yet, despite all of this, according to the Bureau of Labor Statistics the only jobs with a median pay currently over $75,000 in 2018 and whose projected growth rate is “Much Faster Than Average” are those associated with a minimum of a bachelor’s degree or higher.

Jobs by degree classification are listed in alphabetical order:

BACHELORS

masters

doctoral or professional

In the end, college must be about our own personal growth towards what we believe is best for us. However, many students and families lack the information of the plethora of opportunities and career paths that are available to them. For African Americans this becomes especially true and results in a tendency towards low-paying career paths. A fundamental problem for a community that needs higher-earners desperately. The demand for these jobs is high and pays well. Who is to say one can not major in Art History and still become a veterinarian and build enough wealth that they can retire early and afford to teach art history in their community for free? Or open their own gallery? Building wealth early gives us opportunities later and in that vein, we hope this information provides a bit more for your educational arsenal.

 

Unemployment Rate By HBCU State – June 2017


STATES WITH RISING UNEMPLOYMENT: 7

STATES WITH DECLINING UNEMPLOYMENT: 12

STATES WITH UNCHANGED UNEMPLOYMENT: 5

LOWEST: ARKANSAS – 3.4%

HIGHEST: DISTRICT OF COLUMBIA – 6.2%

STATE – UNEMPLOYMENT RATE (PREVIOUS)*

ALABAMA –  4.6% (4.9%)

ARKANSAS – 3.4% (3.4%)

CALIFORNIA – 4.7% (4.7%)

DELAWARE – 4.7% (4.7%)

DISTRICT OF COLUMBIA – 6.2% (6.0%)

FLORIDA – 4.1% (4.3%)

GEORGIA – 4.8% (4.9%)

ILLINOIS – 4.7% (4.6%)

KENTUCKY – 5.1% (5.0%)

LOUISIANA – 5.5% (5.7%)

MARYLAND – 4.1% (4.2%)

MASSACHUSETTS – 4.3% (4.2%)

MICHIGAN – 3.8% (4.2%)

MISSISSIPPI – 5.0% (4.9%)

MISSOURI –  3.8% (3.9%)

NEW YORK – 4.5% (4.4%)

NORTH CAROLINA – 4.2% (4.5%)

OHIO – 5.0% (4.9%)

OKLAHOMA – 4.3% (4.3%)

PENNSYLVANIA – 5.0% (5.0%)

SOUTH CAROLINA – 4.0% (4.1%)

TENNESSEE – 3.6% (4.0%)

TEXAS – 4.6% (4.8%)

VIRGINIA – 3.7% (3.8%)

*Previous month in parentheses.

African America’s July Jobs Report – 7.4%


Overall Unemployment: 4.3% (4.4%)

African America Unemployment: 7.4% (7.1%)

Latino America Unemployment: 5.1% (4.8%)

European America Unemployment: 3.8% (3.8%)

Asian America Unemployment: 3.8% (3.6%)

Previous month in parentheses.

Analysis: Overall unemployment dropped 10 basis points. This returns to matches a 16 year low. African and Latino both saw increases of 30 basis points in their unemployment rates, while Asian and European America’s change was negligible.

African American Male Unemployment: 7.0% (6.3%)

African American Female Unemployment: 6.5% (6.8%)

African American Teenage Unemployment: 23.3% (21.1%)

African American Male Participation: 68.0% (67.5%)

African American Female Participation: 62.5% (62.4%)

African American Teenage Participation: 30.4% (30.8%)

Analysis: African American Females remain a stagnant group in both unemployment and participation rate. African American Males saw quite a rise in their unemployment rate, but with a strong recovery in participation rate after two stagnant months. African American Teenagers saw a step back as their participation rate took a slight hit and unemployment rate rose over 200 basis points. For such a volatile group, this was on the light side.

African American Male-Female Job Gap: 989 000 jobs (945 000 jobs)

CONCLUSION: The overall economy added 209 000 jobs in July. This exceeded many economists expectations and marks 82 straight months of job growth. African America saw a job increase came in at 41 000, a fifth straight month of job gains. This was a significant pickup after a paltry June. The country maybe at full employment, but African America is far from it. It is questionable whether or not African America simply has the infrastructure to spur a massive job growth that would put it in line with the rest of the country. Participation rates for Males recovered, but the overall needle continues to be stagnant. African America’s participation rates trails European American by 40 basis points and Asian America by 170 basis points meaning significant economic stimulus is being lost on a monthly basis. A bigger issue is understanding the wage growth within the group. The BLS does not track earnings by race, but the overall sits at 2.5 percent so likely based on other African America economic trends, African America is bringing up the rear there as well compounding the problem.

African America currently needs 615 000 jobs to match America’s unemployment rate. A increase of 7 000 from June.