Black Americans briefly outnumbered whites’ employment-to-population ratio in March 2023 – marking an achievement for an underprivileged group that has long lacked access to paid work – yet this one-time event does not signal lasting changes in racial employment trends.
Evidence indicates that the reason behind the relative stability of racial employment gaps lies with differing rates at which people transition between labor force statuses. Estimates drawn from monthly Current Population Survey basic files support this view.
2023 ends on a positive
As the labor market tightens, some groups of workers may begin to feel its effects – for instance, Black Americans saw their employment-to-population ratio decline between April, May, and June 2023.
This trend could indicate people leaving the labor force, often because they have found jobs; or it could signal that this tight labor market is starting to loosen, leading to decreased economic output and slower job creation.
However, when discussing racial trends in the job market, employment-to-population ratios offer more comprehensive views of job search processes and factors that impact participation, such as access to child care and transportation, financial strain, health concerns and criminal justice involvement. While Black and white EPOPs have begun to converge recently, more progress should be made through addressing persistent barriers like poverty levels or housing affordability needs that stand in their way of employment.
Lowest Levels Since 1972
Black unemployment has fallen to its lowest levels since 1972 when Labor began tracking it, but that doesn’t guarantee a healthy job market for all workers. When economic activity falters, African American employees often leave the labor force; their departure can serve as a telling indicator of wider employment conditions.
Low Black unemployment means more people are working and searching for work; and also indicates strong hiring in service sectors that mainly employ lower-wage workers.
That is why leaders must prioritize creating an efficient labor market that benefits all workers – particularly marginalized groups such as African Americans. President Joe Biden stated it’s about economic security for working families – jobs where you can raise a family. According to him, Black unemployment has also reached its lowest ever point ever on record.
Black unemployment rate is at a record low
In April, the Black unemployment rate dropped to 4.7% – its lowest point ever since 1972 when the Department of Labor began tracking this statistic for Black individuals. This marks an incredible victory for African-Americans who historically have experienced double the unemployment rates as white Americans due to systematic racism and other structural forces within our economy.
Howard University professor William Spriggs sees this trend as an achievement because more Black people are finding employment and earning wages; particularly in service-sector occupations like restaurants or healthcare where Black Americans tend to disproportionately find work.
While experts advise against placing too much faith in short-term data, this trend suggests that Black Americans who have traditionally been excluded from the labor force are seeing the benefits of an improved economy. If this trend continues, Black employment-to-population ratio may even surpass White Americans in future.
Conclusion
Black unemployment has reached its lowest rate ever and the gap with white unemployment has narrowed, thanks to an economic recovery which has generated jobs for all Americans – particularly Black workers.
NPR’s Ayesha Rascoe sits down with Tulane University professor Gary Hoover to discuss the significance of these new statistics.
This improvement can be attributed to an uptick in warehouse and transportation employment, where Black workers disproportionately work. But the improvement also stems from years of hard work by civil rights groups and economists pushing the Federal Reserve to recognize Black community employment gains instead of reacting solely to inflation concerns.
But it is too soon to declare victory. A long-term commitment must be made toward closing the Black unemployment gap in order to truly address economic disparities between white and Black Americans, including driving economic growth from within – not only by those who already have jobs but by those without.
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