Black male unemployment rate rises in January | Private Equity Weekly

Black men’s status in the labor market declined last month, a sign of continued inequality in the U.S. labor market.

According to statistics, the unemployment rate for black men over the age of 20 was 5.3% in January, up from 4.6% in December Seasonally adjusted data The U.S. Department of Labor released it Friday. When black, Hispanic and white workers are broken down by gender, these workers have the highest unemployment rates.

In comparison, the unemployment rate for white men was only 3.3% in January, the same as in December. The overall unemployment rate was unchanged from December at 3.7%.

Meanwhile, the Black community as a whole is the only racial group tracked to see an increase in unemployment since December. This highlights the impact of unemployment among black men, especially given that the unemployment rate for black women was unchanged between December and January at 4.8%.

Elise Gould, senior economist at the Economic Policy Institute, said that while the rise in black unemployment is worth monitoring, it is more indicative of something unusual about December’s low numbers. The growth rate in January was 5.3%, basically in line with the 2023 average, while the growth rate in December was 4.6%, the lowest level during the year.

She said labor market tightness experienced during the Covid-19 pandemic has helped narrow the gap in work-related opportunities between black and white people. In fact, the difference in unemployment rates between blacks and whites narrowed to 2 percentage points in January from 4.1 percentage points in the same month in 2019.

She added that increases in the total number of employed black men and the proportion of those in work as a proportion of the total population compared with the start of 2023 also paint an improved picture.

But Gould said persistent inequalities in employment and wages highlighted the need for further social progress, while supporting the argument that strong labor markets alone would not bring equality.

According to statistics, the average median weekly wage of white workers aged 16 or older is nearly 20% higher than that of black workers federal data As of the last quarter of 2023. When only male workers are considered, the gap widens to nearly 25%.

“A better economy can definitely provide more help to historically disadvantaged groups because they have often been left out and have been slow to recover during weak economic times,” Gould said. “Full employment is certainly the key to many historically marginalized groups. It’s a requirement for cultural groups to be able to see a positive impact in the labor market, but it’s not the only thing.”

She pointed to unions as an example of the positive power of black workers and noted that wage transparency among members can help close any racial wage gap.

When combining genders, unemployment rates for white and Asian workers fell in January to levels last seen in late autumn. Hispanic unemployment has held steady at 5% since December, while black unemployment has edged up from 5.2% to 5.3%.

Gould warned that month-to-month changes like the black unemployment rate can be fickle. Therefore, she said it’s important to assess long-term trends before drawing conclusions.

Still, Gould said tracking the employment patterns of black workers and other marginalized groups is important for spotting major economic trends. That’s true even when broader employment data like Friday’s release signals economic growth. She added that the labor market is “hot.”