Jobs

Black Unemployment 60% Higher Than National Figure

Photo by Mario Tama / Getty Images

The U.S. Bureau of Labor Statistics released its “The Employment Situation–April 2020”. Total nonfarm payroll employment rose by 266,000 from March. The jobless rate was 6.1%. At 9.7%, the Black unemployment rate was 60% higher than the national figure.

A great deal of the U.S. employment picture has changed since the pandemic-driven recession took hold in late March and early April 2020. However, the recovery is far from complete. The BLS release added:

Both the unemployment rate, at 6.1 percent, and the number of unemployed persons, at 9.8 million, were little changed in April. These measures are down considerably from their recent highs in April 2020 but remain well above their levels prior to the coronavirus (COVID-19) pandemic (3.5 percent and 5.7 million, respectively, in February 2020).

A total of 9.8 million people were unemployed in April.

The unemployment rate among Whites was 5.3%. Among adult men, the figure was 6.1%. Among adult women, the figure was 5.6%. It was 7.9% among Hispanics and 5.7% among Asians. Among teenagers, the rate was 12.3%.

The figures show that Black unemployment was 83% higher than the number for Whites in April.

Black unemployment has always been higher than the national average. Several theories suggest why the difference between the Black and white jobless rates is so large. None is considered definitive by all experts.

Among the most frequently given reasons for the difference is that anti-discrimination laws are not enforced adequately. While this may be true, it has been difficult to identify, for the most part, among specific employers or in specific industries. That makes enforcement on a wide basis almost impossible.

Much easier to show is the gulf in education. According to The National Center for Education Statistics, there were large gaps in reading and math achievement between Black and white children in grades 4 and 12. Data was taken in 1992 and 2015, and no significant improvement was seen between the two periods. Education is a marker of both the extent to which people are hired and the level of income for those who are employed.

Some of the differences in the level of math and reading achievement may be based on the sums school districts spend on each student. According to EdBuild, in nonwhite districts, the amount is $11,682. In mostly white districts, the figure is $13,908. The total gap nationwide means “nonwhite school districts receive $23 billion less than white districts, despite serving the same number of students.”

Another major reason for the employment gap is incarceration rates, many experts argue. According to Pew, “In 2017, Blacks represented 12% of the U.S. adult population but 33% of the sentenced prison population. Whites accounted for 64% of adults but 30% of prisoners.” That means there were 1,549 prisoners per 100,000 Black Americans, compared to 272 per 100,000 whites. The data was based on numbers from federal prisons. The hurdles to employment for people who have been in prison are high.

No single theory or piece of research by itself accounts for the difference in Black and white unemployment. However, taken as a body, the research does show that the disadvantages for Black workers are extremely substantial compared to whites. That, in turn, indicates the situation will not change.

Click here to read These Are the Worst Cities for Black Americans

 

Sponsored: Want to Retire Early? Here’s a Great First Step

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.