Category Archives: Economics

Federal Reserve Chairwoman Janet Yellen’s March 2015 Press Conference (Video)

Posted on March 23, 2015 by | Leave a comment

“In other words, just because we removed the word “patient” from our statement does not mean we are going to be impatient.” – Chairwoman Janet Yellen

One of the key points that Chairwoman Yellen points to is that despite a 2.5 percent growth of GDP in 2014 there appears to be a slowing of growth to start 2015. A sign that while the stock market has been robust the real economy has struggled to pick up as signaled by sluggish consumer spending indicators. Housing and export growth also appears to show rising weakness ahead. Estimates for unemployment over the next two years by the FOMC are expected to come in at 5.0 to 5.2 percent range.

Chairwoman Yellen also appeared to confirm what most economist are predicting in terms of an interest rate hike coming in June if conditions at a minimum hold. For the full statement and the Q&A that follows click on the video below.

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Unemployment Rate By HBCU State – January 2015

Posted on March 23, 2015 by | Leave a comment

Screen Shot 2015-03-20 at 11.45.30 AM

STATES WITH RISING UNEMPLOYMENT: 9

STATES WITH DECLINING UNEMPLOYMENT: 12

STATES WITH UNCHANGED UNEMPLOYMENT: 3

MEDIAN UNEMPLOYMENT (HBCU TERRITORIES) – 5.7%

LOWEST: OKLAHOMA – 3.9%

HIGHEST – DISTRICT OF COLUMBIA – 7.7%

STATE – UNEMPLOYMENT RATE (PREVIOUS)*

ALABAMA –  6.0% (5.7%)

ARKANSAS – 5.6% (5.7%)

CALIFORNIA – 6.9% (7.0%)

DELAWARE – 5.0% (5.4%)

DISTRICT OF COLUMBIA – 7.7% (7.3%)

FLORIDA – 5.7% (5.6%)

GEORGIA – 6.4% (6.9%)

ILLINOIS – 6.1% (6.2%)

KENTUCKY – 5.5% (5.7%)

LOUISIANA – 7.0% (6.7%)

MARYLAND – 5.5% (5.5%)

MASSACHUSETTS – 5.1% (5.5%)

MICHIGAN – 6.3% (6.3%)

MISSISSIPPI – 7.1% (7.2%)

MISSOURI –  5.5% (5.4%)

NEW YORK – 5.8% (5.8%)

NORTH CAROLINA – 5.4% (5.5%)

OHIO – 5.1% (4.8%)

OKLAHOMA – 3.9% (4.2%)

PENNSYLVANIA – 5.1% (4.8%)

SOUTH CAROLINA – 6.6% (6.5%)

TENNESSEE – 6.7% (6.5%)

TEXAS – 4.4% (4.6%)

VIRGINIA – 4.7% (4.8%)

*Previous month in parentheses.

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African America’s February Jobs Report – 10.4%

Posted on March 9, 2015 by | Leave a comment

jobs

Overall Unemployment: 5.5% (5.7%)

African America Unemployment: 10.4% (10.3%)

Latino America Unemployment: 6.6% (6.7%)

European America Unemployment: 4.7% (4.9%)

Asian America Unemployment: 4.0% (4.0%)

Previous month in parentheses.

Analysis: Overall the unemployment rate drops 20 basis points. European and Latino America see drops of 20 and 10 basis points, respectively. Asian America retains America’s lowest unemployment rate, although unchanged from last month. African America saw an increase of 10 basis points and remains the only group with double digit unemployment.

African American Male Unemployment: 10.4% (10.6%)

African American Female Unemployment: 8.9% (8.7%)

African American Teenage Unemployment: 30.0% (29.7%)

African American Male Participation: 67.3% (67.1%)

African American Female Participation: 61.3% (61.3%)

African American Teenage Participation: 29.1% (27.9%)

Previous month in parentheses.

Analysis: African American males saw a 20 basis point decline in their unemployment rate and 20 basis point rise in their participation rate. A rare combination of decreasing unemployment rate and rising participation rate. African American females saw a 20 percent rise in their unemployment rate with an unchanged participation rate. African American teenagers saw a 30 basis point rise in their unemployment rate and 120 basis point rise in their participation rate. African American females appear to have firmly entrenched their single digit unemployment rate.

CONCLUSION: The overall economy added 295 000 jobs in February. Higher than economists forecast of 235 000 for the month. African America added 51 000 jobs in the month of February. The second largest job growth jump month to month over the past five months. In a show of optimism, the African American labor force increased by 61 000, which is the largest increase over the past five months and the primary reason why there was an increase in the unemployment rate.  The question is it really optimism or just hopefulness. As a whole, African America still needs to add 88 000 jobs at current labor force levels just to reach single digit unemployment.

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Unemployment Rate By HBCU State – December 2014

Posted on February 16, 2015 by | Leave a comment

Screen Shot 2015-02-15 at 7.54.53 PM

STATES WITH RISING UNEMPLOYMENT: 1

STATES WITH DECLINING UNEMPLOYMENT: 23

STATES WITH UNCHANGED UNEMPLOYMENT: 0

MEDIAN UNEMPLOYMENT (HBCU TERRITORIES) – 5.7%

LOWEST: OKLAHOMA – 4.2%

HIGHEST – DISTRICT OF COLUMBIA – 7.3%

STATE – UNEMPLOYMENT RATE (PREVIOUS)*

ALABAMA –  5.7% (6.0%)

ARKANSAS – 5.7% (5.8%)

CALIFORNIA – 7.0% (7.2%)

DELAWARE – 5.4% (6.0%)

DISTRICT OF COLUMBIA – 7.3% (7.4%)

FLORIDA – 5.6% (5.8%)

GEORGIA – 6.9% (7.2%)

ILLINOIS – 6.2% (6.4%)

KENTUCKY – 5.7% (6.2%)

LOUISIANA – 6.7% (6.5%)

MARYLAND – 5.5% (5.6%)

MASSACHUSETTS – 5.5% (5.8%)

MICHIGAN – 6.3% (6.7%)

MISSISSIPPI – 7.2% (7.3%)

MISSOURI –  5.4% (5.6%)

NEW YORK – 5.8% (5.9%)

NORTH CAROLINA – 5.5% (5.8%)

OHIO – 4.8% (5.0%)

OKLAHOMA – 4.2% (4.4%)

PENNSYLVANIA – 4.8% (5.1%)

SOUTH CAROLINA – 6.5% (6.7%)

TENNESSEE – 6.5% (6.8%)

TEXAS – 4.6% (4.9%)

VIRGINIA – 4.8% (5.0%)

*Previous month in parentheses.

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African America’s January Jobs Report – 10.3%

Posted on February 9, 2015 by | Leave a comment

jobs_pic

Overall Unemployment: 5.7% (5.6%)

African America Unemployment: 10.3% (10.4%)

Latino America Unemployment: 6.7% (6.5%)

European America Unemployment: 4.9% (4.8%)

Asian America Unemployment: 4.0% (4.2%)

Previous month in parentheses.

Analysis:The overall unemployment saw an increase of 10 basis points. African and Asian America saw declines of 10 and 20 basis points, respectively. European and Latino America saw increases of 10 and 20 basis points, respectively. African America continues to be the only group with double digit unemployment.

African American Male Unemployment: 10.6% (11.0%)

African American Female Unemployment: 8.7% (8.2%)

African American Teenage Unemployment: 29.7% (33.2%)

African American Male Participation: 67.1% (67.8%)

African American Female Participation: 61.3% (61.2%)

African American Teenage Participation: 27.9% (29.0%)

Previous month in parentheses.

Analysis: African American males saw a decrease in both their unemployment rate and participation rate of 40 and 70 basis points, respectively. African American females saw increases in both their unemployment rate and participation rate of 50 and 10 basis points, respectively. African American teenagers saw decreases in both their unemployment rate and participation rate of 350 and 110 basis points, respectively. African American females are the only group with single digit unemployment.

CONCLUSION: The overall economy added 257 000 jobs in the month of January – a surprise to the entire nation and financial community. African America added 21 000 jobs in January marking three straight months of job gains. Unfortunately, African America is seeing its lowest participation rate in the past five months, meaning that despite job gains there is still significant lagging in job creation for the community. It could be a troubling sign as seasonal jobs have come to an end and could prove to be the first of a rough couple of months. Lower oil price estimates should allow for a good hedge for families against these job reductions. The labor force saw no significant increase and in fact saw its population not in the labor force increase 145 000 up to almost 12.2 million. Its highest number in the past five months. Once again showing a tale of multiple Americas. Despite all the headwinds, African America is now 84 000 jobs away from reaching single digit unemployment rate.

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