Thursday, September 3, 2015

Black Unemployment falls below 10%


                         Comments due by Sept.11, 2015
We know that the economic recovery’s effects have been unevenly felt. The recovery has been kind to those who invested in certain stocks or whose title begins with the word “chief.” It’s been less charitable to certain groups, like African-American workers, whose unemployment rates have lingered in the double-digits for most of the past eight years.
For the first time since 2007, the national unemployment rate for African-Americans dipped below 10% in the second quarter of 2015,  according to the Labor Department. Despite that improvement, at 9.5%, it’s still nearly twice the national average of 5.3%, and more than double the 4.6% rate for whites.
Overall, only 11 states had African-American unemployment rates below 10%, according to an analysis by Valerie Wilson, director of the Economic Policy Institute’s Program on Race, Ethnicity, and the Economy. Only eight states have seen unemployment rates for black workers fall below prerecession levels. In Alabama, the African-American unemployment rate is more than twice what it was prerecession: 10.9%, compared with less than 5% throughout 2007.
The nationwide average masks wide variations between states and between races. For example, Tennessee has the lowest unemployment rate for black workers, at 6.9%. But that’s about the same rate as the state with the highest unemployment rate for whites, West Virginia, where unemployment stood at around 7% for the quarter.
Similarly, the ratio of unemployment rates for black and white workers swings from the low end in Tennessee, where the black unemployment is 1.2 times that of whites, to a ratio of 5.1 in Washington, D.C. Dr. Wilson attributes the especially high rate of black unemployment to the District’s concentrated urban population, which she said is not entirely comparable to state populations.
Why the gap? Dr. Wilson points to education and work experience as two major factors. Twenty-two percent of blacks had completed four years of college in 2014, versus 32% of whites, according to the Census Bureau.
However, as researchers at the Center for Economic Policy Research have pointed out, that piece of paper is no hedge against unemployment. A 2014 analysis found that 12.4% of black college graduates aged 22 to 27 were unemployed, compared with 5.6% of all college graduates in the same age group.
So what else explains the gap? Unsurprisingly, discrimination appears to be at play. Using what are known as “audit surveys,” researchers have found that black job applicants are less likely to get called back for job interviews or hired, compared with white and Hispanic applicants with identical credentials. One well-known 2009 study byDevah PagerBruce Western and Bark Bonikowski used trios of actors, one black, one white, and one Hispanic, to apply for low-wage jobs like sales associate or waiter around New York City. The study found that blacks without a criminal record fared about as well as whites with a stated criminal record (i.e., who listed their parole officers as a reference).  “The findings suggest that a black applicant has to search twice as long as an equally qualified white applicant before receiving a callback or job offer from an employer,” the authors wrote.
William Spriggs, chief economist with the AFL-CIO and the former chair of Howard University’s economics department, points to the large variations by state as evidence that local labor market dynamics play a role, specifically, the informal flow of information about job opportunities within a racial group.
“Tennessee isn’t five steps ahead of South Carolina,” a state with 12.8% black unemployment, he said. “The labor market is highly segregated by race, in terms of information flows.”
Labor market cycles may also be a factor. A 2012 paper, “Who Suffers During Recessions?” by Hilary HoynesDouglas Miller and Jessamyn Schaller, found that “men, blacks, Hispanics, youth, and those with lower education levels experience more employment declines” relative to women, whites and the more educated, due the more highly cyclical nature of the industries in which they were concentrated, such as construction or manufacturing, which are particularly sensitive to economic booms and busts.
African-Americans took one of the hardest hits during the financial crisis, losing one-third of their aggregate household wealth between 2010 and 2013, a Pew Research Center analysis found. Even in a recovery, with so many still looking for work, it’s hard to envision how those families can begin to rebuild. A.L. Sussman (WSJ)

13 comments:

Anonymous said...

Though the unemployment rate has improved since the recession, the unemployment rate among African-Americans is still high at 9.5%, close to double the national average of 5.3%. Even with a college degree African-Americans are still struggling to obtain employment. It comes as a surprise that whites with a criminal record had the same percent chance of obtaining a low-wage job as African-Americans without criminal records. At the same time, equally qualified African-Americans had to wait double the time to receive job offers and call-backs when compared to whites. It is sad to say that in this day and age there is still discrimination among races in the United States.

-Hernan Gallego

Jesenia munoz said...

This article touched upon some key things that i found quite surprising and ultimately disturbing. I have heard in the past that white privilege plays a huge part in today's society but to read the actual percentages of unemployment amongst African Americans and how they compared to that of whites was shocking. It's sad to hear that unemployment dropping to 9.5% is the best news we have received on this topic in QUITE some time. Even worse to hear that this is not even a nationwide "accomplisment"; there have only been ELEVEN states that had African American unemployment rates below 10%. As a matter fact, the LOWEST percentage was only 6.9% in Tennessee for African American unemployment which compares almost identically to the HIGHEST percentage amongst all the states for white unemployment. It's still disturbing to realize how far we have gotten throughout time and how many accomplishments we have made towards change and equality and yet there are so many people still facing such discrimination daily.
- Jesenia Munoz

Maria Tan said...

It is unfortunate that racism and discrimination are still rampant. Despite a rising economy and excellent qualifications, the unemployment rate of african-americans is still over ten percent. It has gradually improved; however, it is still significantly higher than that of whites and the national average. Furthermore, the african american unemployment rate in Tennessee is 6.9 %, the lowest in the nation, but the highest unemployment rate for whites is 7%. It is preposterous how the lowest unemployment rate for african americans is the highest for that of the whites. Yes, education and work experience are important factors when looking for a potential employee, but some businesses ignore those factors and only see race. It is a shame that people still judge based on color.
- Maria Tan

Anonymous said...

This article makes it clear that racism still plays a major role in our society. Although our country is becoming more college orientated, African American’s college degrees still do not qualify them enough for a low waged job. The article stated that the African American unemployment rate is almost close to double the national average of 5.3%. It frustrates me to see that an African American with a college degree and no criminal record has to compete with a White individual, who also has the same degree but also has a criminal record. Why doesn’t the African American who has no history with law enforcement have an advantage of obtaining a job against someone who does have a criminal history? Also in this essay, it mentioned that woman seem to be finding jobs easier than men, which is also discrimination. In today’s society and workforce there are a plethora of faults dealing with the employer’s of the nation.
-Vincent Vasheo

Anonymous said...

This article displays a lot more than just the unemployment rate of African Americans. It shows that discrimination among race is still very much a thing. It also shows that although the employment rate is increasing, still 9.5% of African Americans are unemployed, that's almost double the national unemployment average (5.3%). This article is really eye-opening because it states that even African Americans with a four year college degree and the same credentials as a White or Hispanic person, can apply for the same job will most likely not get it due to the fact that they are African American. I did a research paper on a similar topic last year and this article helps prove that racism and discrimination are very much still alive in society and play a big roll.

-Eva Hart

Anonymous said...

This article definitely supports the idea that racial discrimination is still huge factor when it comes to employment. Though African Americans, seem to be the main group discussed in this article they are not the only minorities that are affected. The unemployment rate for African Americans will always be higher than the rest of the ethnic groups due to discrimination. One thing that caught my attention in this article were the actors that were hired to apply for low income jobs in New York City. The fact that an African American with no criminal record had less of a chance of getting a job than a white applicant with a criminal record is appalling. Only having 11 states with African American unemployment under 10% is another key point in this article that surprised me. Fixing a problem like this seems impossible because you would have to change the mindset of so many people. How can an African American prove that they are qualified for a job when they cannot receive the courtesy of getting a call back. Discrimination and racial inequality are still very prevalent but how can one put an end to it.
-Diamond Melhado

Anonymous said...


After reading this article I am left very surprised. As someone who didn't grew up on the states I saw as portrayed by media that in this country racism was no longer existent, little did I know when coming here that what I thought was a reality wasn't. It left a bad taste in my mouth seeing the percentages when it comes to black unemployment and even worse was looking at the results of the studies and research presented here. Its really saddening to see that race is much more of an important factor to jobs than it is competence and how society diminishes the accomplishments and education of blacks when compared to the other races. I believe that the fight for equality is something we need to keep on emphasizing in order for the lives of many to improve. Hopefully one day fairness will be the sole factor when hiring.

-Pablo Villacis

Anonymous said...

African American unemployment rates have dropped to less than 10% for the first time in 8 years. It is almost double the national rate of 5.3% and is more than double the white unemployment rate of 4.6%. Racism still exists in the United States and discrimination towards African Americas and other groups still goes on. According to Dr. Wilson, education and work experience are major reasons why the unemployment rate for blacks is higher than for whites, but The Center for Economic Policy Research disagrees and found through research that blacks with a college education still have a higher unemployment rate than all college graduates. It actually surprised me that African Americans without a criminal record were competing for the same low pay jobs as whites with a criminal record. Unfortunately, racism and discrimination continue to be a huge problem in the U.S., but it seems to be improving as the African American unemployment rate is lower than it has been in many years.
-Sabrina Ruggiero

Anonymous said...

The statistics within this article are very upsetting. It is frightening to see our country backtrack on issues that we've come so far to over come. All Americans should be given the right to employment despite race or ethnicity. The article states that African American men are less likely to be employed compared to white men with the exact same qualifications. These actions are unconstitutional and unjust. As a member of the upcoming generation, I believe racial issues like these need to be made more apparent. It is sad to see that racial profiling is a never ending issue in the corporate "professional" world. Many of these men can attribute positive qualities to firms, and corporations just as men of other races. This article has opened my eyes to how difficult it is for African Americans in this day and age to receive jobs in order to support their families. I believe much attention should be brought to this issue and others life it. The public hears more about the success of Apple, Amazon, Google, Netlfix, etc., and less about the people being denied from employment due to race.
-Cristina Alvarado

Anonymous said...

When I began reading this article at first my focus was solely on the unemployment rate and the graph that was displayed. However when reading more I realized how much of a difference there was between each group. Though the hispanics and white share a closer gap, the gap is still thousands of people wide. But then moving on to the African-American's, there was an enormous gap which surprised me. If you told me that African-Americans would have a gap and I had to guess how big, I would only assume a few %'s not more than double that of a White American. That % difference is crazy because the amount of people that are actually involved cannot simply be expressed in %'s in order to give it the right gravity. That is literally thousands of people who are unemployed and mainly due to the discrimination according to the document. However on a better note, it's dropping. That's what's so important here. That the number is dropping and has reached an all time low since 2008. Thats great to hear and I hope that it continues until we reach cyclical unemployment. Of course it is upsetting to see that there is still a gap, but the key is to observe the current data that shows it is dropping and with context seems to be dropping continually. This matter is a pretty specific one but it is important to see the gaps in each racial group and new increase in employment. Overall great article, opened my mind to the racial boundaries in our society and the unemployment gaps.

-ALBERTO MONGES

Unknown said...

This article defines one of the major problems in the U.S. today - inequality. A system that preaches "Liberty and justice for all" isn't so just after all. Inequality doesn't have to pop out and announce itself; its hidden and often times must be looked for in order to be revealed. The statistics in this article do a great job showing that inequality, specifically for African Americans. 9.5% of African Americans are currently unemployed, which is almost double the national average of 5.3%. Even if an African Amercian graduate holds the same degree/title, their degree might hold less weight as proven by the hiring methods some companies have used. Often times a job will go to a person of another race even if their credentials are the same. Furthermore, the article states that there are only 11 states where the unemployment rate for African Americans is under 10%. This clearly is a bigger issue than we realize and something needs to be done in order to help make things equal in terms of work. - Billy DeTomado

Anonymous said...

This article focuses on the unfortunate and rather shockingly high unemployment rates of African-Americans, whose unemployment rates have been in the double digits for the better part of the past eight years. Even with the national unemployment rate dropping below ten percent for the first time since 2007 it’s still nearly double the national average (5.3%) and over twice the 4.6% rate for whites. While it is true that only 22% of blacks completed four years of college compared to 32% of whites; it is also true that 12.4% of black college graduates (22-27) are unemployed versus 5.6% of all college graduates (22-27). The most shocking statistic was that African Americans without a criminal record fare about as well as whites with a stated criminal record when applying for low level jobs.
-Maura Badia

Anonymous said...

Although African- American unemployment has fell , it is a hard thing to celebrate. This is so because the unemployment rate among this population is almost twice the national average , which is 5.3% and is much higher at 9.5% compared to the unemployment rate among whites which is 4.6%. And when we really delve into into this issue , it is alarming that only 10 states have an African- American unemployment rate below 10%. It is startling and has us asking what more can be done? With only 22% of African- Americans completing four years of college, that creates only half the issue. Even the unemployment rate for African-American graduates is 12.4% compared to the usual 5.6% for the age group. It is sad that in this day in age the work place is still segregated with African-American applicants being less likely to be called back, even when up against a white applicant with a criminal record. African- Americans took the hardest hit during the recession as well and are still recovering. These statistics are really shocking in my eyes.
-Morgan Ward