Tag Archives: unemployment rate

HBCU Money™ Dozen 6/2 – 6/6

Posted on June 8, 2014 by | Leave a comment

12

Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

5 Reasons Why China is Attacking U.S. Tech l CIOonline trib.al/GKVHXfJ

Extreme evolution: How snakes became the über-eater l New Scientist ow.ly/xGKHh

Convert waste CO2 and chicken feathers into fertiliser l New Scientist ow.ly/xGKLJ

World’s Oldest Solar Device l Clean Technicadlvr.it/5txx05

What’s the best approach to building next-generation data center networks? l Network Worldow.ly/xGL7U

Where have all the species gone? Network model explains long-term stagnation in marine life. l APS Physics ow.ly/xGLem

Federal Reserve, Central Banks, & Financial Departments

While the unemployment rate has dropped since late 2009, unemployment duration remains high l St. Louis Fed bit.ly/1t1XlUQ

What is monetary policy? Take our online course to find out l Econ Lowdown bit.ly/1l1oynr

United States Signs $500 Million Loan Guarantee Agreement with Tunisia l Treasury Departmentgo.usa.gov/8sbm

Future population change will likely reduce income and sales tax revenue in every state l KC Fed ow.ly/xGMqj

What Americans (Don’t) Know about Student Loan Collections l NY Fed nyfed.org/UeirCV

Christopher Whalen: Are US home prices falling? l Housing Wire hwi.re/5tNWKq

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

Leave a comment

Posted in Finance & Tech Review

Tagged , , , , , ,

Recipe To Get African America’s Unemployment Rate Under 10 Percent – Add Almost 500,000 Jobs And Stir

Posted on May 6, 2014 by | Leave a comment

By William A. Foster, IV

Had I not gone through the ordeal, in more than one country, of landing a job, I would be tempted to lose patience over the number of letters pouring in from fellows who want me or someone else to hand them a job on a silver platter with a guarantee that they will receive the wonderful promotion their talents warrant. But a tragic number of young men and even older men have a notion that it is not up to them to prosecute the bettering process. They look to someone else to perform the trick for them. — B.C. Forbes

VO-1564-p67-black_man_jobs

Imagine for a moment me, a Texan and southerner, moving to Boston for the first time as I did many years ago adjusting to the weather. To say it was a shock would be an understatement. After thinking I had made it through “winter” because I made it through December – Houston winter logic for sure – I was informed that winter was just starting. Wait, what? In Houston, we are warming back up in the 70s by February. Boston was my first time experiencing single digit weather week. Then to experience it for weeks on end made me wonder how anyone in their right mind lived here. It was cold and it was not letting up, but then a strange thing would happen. One day it would happen to creep into the high twenties or low thirties and I would see people out in shorts and riding around with tops down on their convertibles. Insert every confused face one could have. The reality was that after weeks of single digits a dramatic move up even to a temperature still considered freezing would psychologically make them think it was warm. This in a nutshell is what is happening to African America and its “improving” employment situation. It is so bad that even a modest move up makes us feel excited.

The notion of improvement is one thing, but knowing where a healthy unemployment rate versus improving unemployment rate is another. Our goal can not be to simply get the unemployment rate to single digits, but to get it to a competitive rate which currently is around 5 percent. A mark that seems like it would take a miracle for us to get too with our current dependency on affirmative action and the public sector. The reality is despite our dependency on these two things, it is African American companies of which there are not enough, which offer us the best hope. Currently, African American firms with paid employees represent 0.4 percent of all firms in America, but have employees equivalent to approximately 5 percent of the African American labor force.

Every month here at HBCU Money, we release the African American Unemployment Report the Monday after the nation’s job report is released on the first Friday of every month. It gives month to month statistics and analysis along with a rolling five month overview as well. One analysis every month without fail is that “African America remains the only group with double digit unemployment rate” when reviewing the country’s different groups and their unemployment rates.  Currently, African America’s unemployment rate is 450, 660, and 700 basis points higher than Latino, European, and Asian America’s, respectively. The latter having the lowest unemployment rate in the country of any diaspora group. So much for that oppressed minority and people of color boat we keep thinking we are in with Asians and Latinos. The gap between us and other groups – even our “color comrades” – is not even close.

So how many jobs would it take to at least get us to the 9.9 percentage unemployment rate? Approximately 462 000 jobs would be needed at our current labor force based on March’s African American unemployment report. I must admit when I first calculated it was followed with a deep sigh. At the moment, the country as a whole can not even produce 200 000 jobs a month as we are still paying the cost for decades of an over leveraged and an inordinate consumption economy. Over the past five months African America’s job growth has been averaging 62 000 jobs per month, but over the same period the country is averaging 140 000 jobs per month. In other words, we would need an increase of 122 percent just to match the nation’s average in job creation.

Job creation is no easy task for a country or community. It takes a healthy banking sector first and foremost. This allows an increase in mortgages and equity lines. Those in turn also allow people to borrow against their homes for loans or to use their home to secure Small Business Administration loans through their bank to start a business in their community. It would also require those home purchases to be in African American communities. Small businesses tend to be based in or near the communities they live in. The exception it seems in the African American community where businesses are predominantly owned by outsiders that drain the community of capital and employment opportunities. The ingredients may seem simple enough, but we all know cooking a great meal can take all day and when it is hot most do not want to stay in the kitchen.

 

Leave a comment

Posted in Economics

Tagged , ,

African America’s March Unemployment Report – 12.4%

Posted on April 7, 2014 by | Leave a comment

jobs_pic

Overall Unemployment: 6.7% (6.7%)

African America Unemployment: 12.4% (12.0%)

Latino America Unemployment: 7.9% (8.1%)

European America Unemployment: 5.8% (5.8%)

Asian America Unemployment: 5.4% (6.0%)

Previous month in parentheses.

Analysis: Overall the unemployment rate went unchanged. Asian and Latino America both saw declines in their unemployment rates of 60 and 20 basis points, respectively. European America went unchanged. African America saw an increase of 40 basis points and remains the only group with double digit unemployment rate.

African American Male Unemployment: 12.1% (12.9%)

African American Female Unemployment: 11.0% (9.9%)

African American Teenage Unemployment: 36.1% (32.4%)

African American Male Participation: 67.0% (66.6%)

African American Female Participation: 62.0% (61.9%)

African American Teenage Participation: 25.6% (24.9%)

Previous month in parentheses.

Analysis: African American male unemployment saw a decline of 80 basis points, but females and teenagers both saw significant increases of 110 and 370 basis points, respectively. Participation rates for all three groups saw increases in their participation rates.

Conclusion: The overall economy added 192 000 jobs. An increase of 17 000 over February’s numbers, but still short of the majority of economist estimates. A sluggish effect from the winter storms appears to be still dragging. African America added 21 000 jobs for March. The number of employed African Americans and participation rate is at its highest in the past five months. African America’s labor force is at its highest number in the past five months, but so is the number of unemployed. Both of these factors have a significant factor on increasing the unemployment rate. There is renewed optimism for African American job seekers, but it would take an increase of 462 000 new jobs just for African America to get its unemployment rate under 10 percent at the current labor force numbers. An amount well over 100 percent above what the entire country is currently producing. This is also the smallest number of jobs African America has added in the past five months so even though most of the marks looks good, it appears to be more like the best sweater in an ugly sweater party.

Leave a comment

Posted in Economics

Tagged , ,

African America’s January Unemployment Report – 12.1%

Posted on February 10, 2014 by | Leave a comment

jobs_pic

Overall Unemployment: 6.6% (6.7%)

African America Unemployment: 12.1% (11.9%)

Latino America Unemployment: 8.4% (8.3%)

European America Unemployment: 5.7% (5.9%)

Asian America Unemployment: 4.8% (4.1%)

Previous month in parentheses.

Analysis: Overall unemployment dropped 10 basis points. European America is the only group who saw their unemployment rate decline among all groups. Asian America had the largest increase among all groups. African American remains the only group with double digit unemployment rate.

African American Male Unemployment: 12.0% (11.5%)

African American Female Unemployment: 10.4% (10.4%)

African American Teenage Unemployment: 38.0% (35.5%)

African American Male Participation: 66.2% (65.6%)

African American Female Participation: 61.5% (61.2%)

African American Teenage Participation: 26.4% (27.4%)

Previous month in parentheses.

Analysis: A positive gain in participation rate for both men and women groups. Unemployment rates rose for both men and teenager groups. The teenager group hit a new low in their participation rate in the rolling past five months.

Conclusion: The overall economy added 113 000 jobs. Dubbed another disappointing month by economist as it missed estimates. African America’s labor force rose to its second largest number in the past five months increasing by 157 000 showing potential optimism brewing. However, only 95 000 jobs were added keeping the overall participation rate for African America at its second lowest over the past rolling five months. The participation rate for women remains virtually unchanged over the past rolling five months. African American men are at the second lowest participation rate in the past rolling five months. The good news, men and women have the largest employed population over the past rolling five months coupled with budding optimism for the adult population. African America’s employment issues just can not seem to find stable footing for long enough to make any dent. We are not back treading at the moment, but we are certainly not making any progress.

Leave a comment

Posted in Economics

Tagged , ,

African America’s December Unemployment Report – 11.9%

Posted on January 13, 2014 by | Leave a comment

jobs_pic

Overall Unemployment: 6.7% (7.0%)

African America Unemployment: 11.9% (12.4%)

Latino America Unemployment: 8.3% (8.7%)

European America Unemployment: 5.9% (6.2%)

Asian America Unemployment: 4.1% (5.3%)

Previous month in parentheses.

Analysis: Overall unemployment sees another 30 basis point drop. All groups saw drops in their unemployment rates. Asian America saw the most significant decline with a 120 basis point drop. Despite a 60 basis point drop, the African American unemployment rate remains the only one in double digits.

African American Male Unemployment: 11.5% (12.1%)

African American Female Unemployment: 10.4% (11.1%)

African American Teenage Unemployment: 35.5% (35.7%)

African American Male Participation: 65.6% (66.3%)

African American Female Participation: 61.2% (61.4%)

African American Teenage Participation: 27.4% (26.5%)

Previous month in parentheses.

Analysis: All three groups saw drops in their unemployment rates, but only the teenage group saw its participation rates rise.

Conclusion: The overall economy added 74 000 jobs last month. This was the lowest overall figure in the past three years raising concerns about the Federal Reserve’s continued quantitative easing policy. African America’s labor force dropped by 81 000 largely explaining the significant drop in the unemployment rate. The number of employed increased for African America by only 17 000. Despite how bad it looks, the number of employed actually is the second highest number in the past five months. This is somewhat unsettling given the amount of season hires potentially baked into the statistics. As employers start to unwind these temporary hires over the next few months a clearer picture of African America’s employment situation should come to bear.

Leave a comment

Posted in Economics

Tagged , ,