Exploring African American Unemployment in the USA: Beyond the Numbers

While the headline is often that African American unemployment has hit record lows, a deeper dive into the data paints a more nuanced picture. Let's explore the facts and figures surrounding unemployment among African Americans, backed by data from the US Bureau of Labor Statistics (BLS).

Unemployment Rates and Labor Market Dynamics

It's imperative to understand that the unemployment rate for African Americans has fluctuated over the years but remains far from ideal. The BLS has only been recording these figures since 1972, providing a relatively short but informative dataset. As of February 2019, the official U-3 unemployment rate for African American men was 7.9%, compared to a record low of 6.3% in November 2018. This current rate is still significantly above its lows in 2000 and 1973, and far from the level one might consider healthy.

The situation for African American women is slightly better but still leaves much to be desired. The unemployment rate was 6.1% as of February 2019, down from 4.8% in May 2018, but still substantially higher than the 3.2% rate for adult white women in the same period.

Limitations of Unemployment Rate Data

The unemployment rate is a complex figure based on estimations that often leave room for interpretation. Key limitations include:

Official unemployment estimates are derived from the labor force participation rate, which excludes those who aren't actively looking for work but still want to work. Newly employed individuals sometimes come from uncounted groups, making it difficult to accurately track changes month to month. Irrelevant groups, such as incarcerated individuals, do not directly affect these numbers. The employment-population ratio offers a more reliable measurement, as it does not rely on the volatile labor force participation rate.

Educating Ourselves with Data

Let's look at some key data points:

Employment Population Ratios

The employment-population ratio for working-age African American men in February 2019 stood at 59.9%, significantly below the peak of 64.5% in 1998. Prior to the Great Recession, this ratio typically exceeded 60%. Similarly, the employment-population ratio for working-age African American women, which reached 59% in 1999-2000, is now at 56.5%, a decline from its peak.

Youth Unemployment

Youth unemployment remains a concerning issue for African Americans, especially those aged 16-24. In February 2019, the unemployment rate for this age group was approximately 20%, a substantial year-over-year increase. These figures are not seasonally adjusted, and due to small sample sizes, the trend may be exaggerated. Nevertheless, the high rates remain troubling.

Critical Age Groups: 25-54

The age group 25-54 is crucial for understanding labor market dynamics. For this demographic, the unemployment rate among African American men in February 2019 was 7.1%, with a record low of 3.6% in 1973. The corresponding rate for women was 5.3%, dipping below 5% during parts of 1999-2001 and again in 2018. These ratios are more reliable as they track the core working-age population most likely to be engaged in career employment.

Data Insights

Comparing unemployment rates between races provides valuable context. In February 2019, the unemployment rate for adult African-American men was 7.9%, which is 2.4 times the 3.3% jobless rate for white men. The record-low ratio of 1.76:1 was achieved in September 2009, highlighting the persistent disparity in employment rates between African Americans and whites.

Understanding these data points is crucial for policymakers, economists, and anyone interested in the state of the American labor market, particularly when it comes to different ethnic groups. As the economy continues to recover, it's essential to recognize that the situation is not uniform across all demographics.

By staying current with BLS data and recognizing the limitations of unemployment rates, we can make more informed decisions and foster a more equitable labor market for all Americans.