Category Archives: Economics

African America’s July Jobs Report – 8.4%

Posted on August 8, 2016 by | Leave a comment

jobs

Overall Unemployment: 4.9% (4.9%)

African America Unemployment: 8.4% (8.6%)

Latino America Unemployment: 5.4% (5.8%)

European America Unemployment: 4.3% (4.4%)

Asian America Unemployment: 3.8% (3.5%)

Previous month in parentheses.

Analysis: Overall unemployment was unchanged. All groups except Asian America saw a decline in their unemployment rate, who saw a 30 basis point increase in their unemployment rate. Latino America led the way with the largest decrease of 40 basis points, followed by African America’s 20 basis points, and lastly, European America’s 10 basis points.

African American Male Unemployment: 8.2% (8.2%)

African American Female Unemployment: 7.3% (7.3%)

African American Teenage Unemployment: 25.7% (31.2%)

African American Male Participation: 67.7% (67.8%)

African American Female Participation: 61.0% (60.9%)

African American Teenage Participation: 27.7% (29.2%)

Analysis: African American men unemployment rate was unchanged, with 10 basis point decrease in their participation rate. African American women unemployment rate was also unchanged, but a 10 basis point increase in their participation rate. African American teenagers had an decrease of 550 basis points in their unemployment rate, but had a worrisome 150 basis point decrease in their participation rate.

CONCLUSION: The overall economy added 255 000 jobs in July. African America added only 31 000 jobs in July, a decline from June’s AAJR of 32 000. Again, two straight months of anemic jobs growth for African America after adding 122 000 jobs in May. However, these figures are in line with traditional jobs growth for African America, while May was an anomaly. If there is a current silver lining for African America, it is our banking industry. With an explosion in new deposits and demand for even more new deposits, African American owned banks and credit unions could see a need to increase employment to handle the new demand. That is the short term optimism, while the long term gain could be in new lending for African American small businesses.

African America currently needs 680 000 jobs to match America’s unemployment rate.

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Federal Reserve Chairwoman Janet Yellen’s June 2016 Press Conference (Video)

Posted on July 19, 2016 by | Leave a comment

Excerpt from June Press Conference with Chairwoman Janet Yellen:

“While the general picture of the labor market is largely positive, some people are still struggling. Unemployment rates rose more during the recession for African Americans and Hispanics than for the nation overall, and even though those rates have also come down by more during the economic expansion, unemployment remains higher for these groups. Unfortunately, those gaps have not narrowed noticeably relative to where they were before the recession. Unemployment rates for young African American and Hispanic men without a college degree remain especially high, and one important benefit from further improvement in the labor market would be increased job opportunities for these men and other groups that currently still experience high unemployment.”

Full Press Conference & FOMC Statement:

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Unemployment Rate By HBCU State – May 2016

Posted on July 13, 2016 by | Leave a comment

Screen Shot 2016-07-12 at 3.52.21 PM

STATES WITH RISING UNEMPLOYMENT: 2

STATES WITH DECLINING UNEMPLOYMENT: 17

STATES WITH UNCHANGED UNEMPLOYMENT: 5

LOWEST: ARKANSAS & VIRGINIA – 3.8%

HIGHEST – ILLINOIS – 6.4%

STATE – UNEMPLOYMENT RATE (PREVIOUS)*

ALABAMA –  6.1% (6.1%)

ARKANSAS – 3.8% (3.9%)

CALIFORNIA – 5.2% (5.3%)

DELAWARE – 4.1% (4.2%)

DISTRICT OF COLUMBIA – 6.1% (6.4%)

FLORIDA – 4.7% (4.8%)

GEORGIA – 5.3% (5.5%)

ILLINOIS – 6.4% (6.6%)

KENTUCKY – 5.1% (5.3%)

LOUISIANA – 6.3% (6.3%)

MARYLAND – 4.5% (4.6%)

MASSACHUSETTS – 4.2% (4.2%)

MICHIGAN – 4.7% (4.8%)

MISSISSIPPI – 5.8% (6.0%)

MISSOURI –  4.3% (4.3%)

NEW YORK – 4.7% (4.9%)

NORTH CAROLINA – 5.1% (5.4%)

OHIO – 5.1% (5.2%)

OKLAHOMA – 4.7% (4.5%)

PENNSYLVANIA – 5.5% (5.3%)

SOUTH CAROLINA – 5.6% (5.8%)

TENNESSEE – 4.1% (4.3%)

TEXAS – 4.4% (4.4%)

VIRGINIA – 3.8% (3.9%)

*Previous month in parentheses.

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African America’s June Jobs Report – 8.6%

Posted on July 11, 2016 by | Leave a comment

jobs

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.

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Unemployment Rate By HBCU State – April 2016

Posted on June 7, 2016 by | Leave a comment

Screen Shot 2016-06-07 at 5.40.56 PM

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.

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