Tag Archives: african american unemployment

African America’s May Jobs Report – 8.2%

Posted on June 6, 2016 by | Leave a comment

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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.

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African America’s April Jobs Report – 8.8%

Posted on May 9, 2016 by | Leave a comment

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Overall Unemployment: 5.0% (5.0%)

African America Unemployment: 8.8% (9.0%)

Latino America Unemployment: 6.1% (5.6%)

European America Unemployment: 4.3% (4.3%)

Asian America Unemployment: 3.8% (4.0%)

Previous month in parentheses.

Analysis: Overall unemployment rose slightly in the month of April from the previous month. African and Asian American both saw 20 basis point declines.  European America was the only group to go unchanged. Lastly, Latino America has an uptick of 50 basis points in their unemployment rate.

African American Male Unemployment: 9.5% (8.7%)

African American Female Unemployment: 6.9% (8.0%)

African American Teenage Unemployment: 26.0% (25.3%)

African American Male Participation: 68.1% (67.2%)

African American Female Participation: 60.2% (61.5%)

African American Teenage Participation: 29.2% (30.5%)

Previous month in parentheses.

Analysis:African American males had a 80 basis point increase in their unemployment rate and a 90 basis point increase in their participation rate. African American females had a 110 basis point decrease in their unemployment rate and a 130 basis point decrease in their participation rate. African American teenagers unemployment rate increased 70 basis points and participation rate experienced a decrease of 130 basis points.

CONCLUSION: The overall economy added 160 000 jobs in April. African America lost 59 000 jobs in April, the second consecutive decrease in the past five months. The African American labor force also pulled back with a decline of almost 100 000 for a second consecutive month. Nervously, the participation rate is at its lowest over the past five months remains with a very sharp decline of 40 basis points. A divergence from a rate that has been fairly steady as it goes the past five months. There are signs that fresh economic thunderstorms are settling in over the African American economy. The Federal Reserve continues to suppress interest rates, which while keeping the stock market humming along (barely) is also keeping lending tight. The latter being a situation that prevents many of America’s small businesses from hiring and even more potential businesses from even getting off of the ground. If banks can not make enough money off making a loan to a risky small business just opening its doors, then better to park the cash in Treasuries and wait out the interest rate conundrum. Meanwhile, the American economy continues to die a paper cut death. African America’s economy just lost another bank making lending for small businesses and therefore job creation within the community an even higher hurdle to climb, as if jumping over Mount Olympus with a broken leg was not hard enough. Maybe the winds will change, but until the Federal Reserve decides to take the economy off of the low interest rate medicine, then there is very little hope of the economy breaking out into a real sprint. Currently, the downside looks a lot more probable than the upside.

African American needs an increase of 742 000 jobs to match the country’s unemployment rate – a decrease of 37 000 jobs from the previous month.

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African America’s November Jobs Report – 9.4%

Posted on December 7, 2015 by | Leave a comment

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Overall Unemployment: 5.0% (5.0%)

African America Unemployment: 9.4% (9.2%)

Latino America Unemployment: 6.4% (6.3%)

European America Unemployment: 4.3% (4.4%)

Asian America Unemployment: 3.9% (3.5%)

Previous month in parentheses.

Analysis: Overall unemployment went unchanged in the month of November from the previous month. All groups saw rises in their unemployment rates, except European America who saw a 10 basis point decline.

African American Male Unemployment: 9.9% (9.2%)

African American Female Unemployment: 8.0% (8.1%)

African American Teenage Unemployment: 23.7% (25.6%)

African American Male Participation: 66.7% (67.0%)

African American Female Participation: 62.8% (62.5%)

African American Teenage Participation: 27.4% (27.0%)

Previous month in parentheses.

Analysis:African American males had a 70 basis point increase in their unemployment rate and a 30 basis point decrease in their participation rate. African American females had a 10 basis point decrease in their unemployment rate and a 30 basis point increase in their participation rate. African American teenagers  unemployment rate declined 190 basis points and participation rate experienced an increase of 40 basis points.

CONCLUSION: The overall economy added 211 000 jobs in November. African America added a mere 11 000 jobs in November. The African American labor force is at a five month high, but this is more likely due to confidence in seasonal hiring. The participation rate over the past five months remains virtually unchanged meaning that African America’s employment situation is basically doggy paddling in the middle of the economic ocean. Just how much optimism can be put into this current economy with the Federal Reserve set to raise rates for the first time in a decade and uncertainty of how companies will respond is tough to get a pulse on. Many believe the more expensive debt even by only 25 basis points could squeeze the public sector where African America is overly concentrated in employment. The economy’s response to the rate hike could say a lot for the coming year as it relates to African American employment for better or worse. African American needs an increase of 756 000 jobs to match the country’s unemployment rate. A decrease of 61 000 from October’s number.

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African America’s June Jobs Report – 9.5%

Posted on July 6, 2015 by | Leave a comment

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Overall Unemployment: 5.3% (5.5%)

African America Unemployment: 9.5% (10.2%)

Latino America Unemployment: 6.6% (6.7%)

European America Unemployment: 4.6% (4.7%)

Asian America Unemployment: 3.8% (4.4%)

Previous month in parentheses.

Analysis: Overall unemployment dropped 20 basis points. All groups saw declines in their unemployment rate with African and Asian America seeing the most significant declines at 70 and 60 basis points, respectively. Latino and European America both saw declines of 10 basis points.

African American Male Unemployment: 9.5% (10.2%)

African American Female Unemployment: 7.9% (8.8%)

African American Teenage Unemployment: 31.8% (30.1%)

African American Male Participation: 67.6% (68.5%)

African American Female Participation: 62.0% (61.9%)

African American Teenage Participation: 28.6% (28.7%)

Previous month in parentheses.

Analysis: African American male unemployment dropped 70 basis points, while the participation rate dropped 90 basis points. African American female unemployment dropped 90 basis points, while the participation rate rose 10 basis points. African American teenage unemployment rate spiked 170 basis points, while the participation rate dropped 10 basis points.

CONCLUSION: The overall economy added 223 000 jobs in June. African America added 60 000 jobs. Everything that glitters is not gold. Despite job gains, African America saw 82 000 people leave the work force in June, which is in combination with the job gains pushed the unemployment rate back into the single digits. Not the combination you want to see given labor force is an indictor of employment optimism or pessimism. Wages overall in the country also remain stubbornly unmoved. African American females remain the cornerstone of economic health in the community adding 100 000 jobs, but males and teenagers lost 25 000 and 14 000, respectively. Things are not bad (by normal African American standards), but they are not getting better. The economy seems to be in a holding pattern of uncertainty. African America’s trends are largely stagnant over the past five months with continued gains and losses from month to month, while currently needing to pick up 820 000 jobs to move African America’s unemployment rate in line with the country’s average.

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African America’s January Jobs Report – 10.3%

Posted on February 9, 2015 by | Leave a comment

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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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