Employment-Population Ratio is Mixed in April for African Americans

Job cuts by the public sector, where blacks are overrepresented, are factors

The employment-population ratio, which is the best indicator the percentage of the population that is working, was mixed in April for black men and black women 20 years old and older, according to Work in the Black Community by the University of California at Berkeley Center for Labor Research and Education.

The employment-population ratio for men was 58.1 percent in April, compared with 58.9 percent in March, Work in the Black Community reported. The organization's report is based on data provided by U.S. Department of Labor Statistics.  The highest employment-population ratio for men was 64.7 percent, which was recorded in December 2007.

For black women, the employment-population ratio in April improved to 56.1 percent, up from 55.4 percent in March. The highest employment-population ratio for women was 59.1 percent, which also was recorded in December 2007. The combined employment-population for both black men and black women 20 years old and older in April was 57 percent, which was unchanged from March's figure of 56.9 percent. The highest combined employment-population ratio for black men and black women was 61.6 percent, which occurred in December 2007.

Work in the Black Community did not provide an explanation for the mixed results, but the Economic Policy Institute (EPI), a Washington, D.C.-based think tank, on May 2 released a policy paper, which reported that African-Americans have lost jobs because they were heavily employed by state and local governments. As public-sector jobs disappear, blacks are having a difficult time finding work in the private sector, which is hiring.

The public sector hired African Americans because of the government's commitment to equal opportunity. This was not voluntary. Legislation and executive orders mandated equal employment practices in the public sector.

EPI noted that in response to lower revenues and budget shortfalls, African Americans have been disproportionally affected by the cuts because they have been overrepresented in public sector employment.

"Since the official end of the recession in June 2009, the private sector has slowly recovered some of the jobs it lost during the downturn, while the public sector has continued shedding jobs at a rapid pace, according to the briefing paper, “The Public-Sector Job Crisis: Women and African American Hit Hardest by Job Losses in State and Local Governments," by EPI analysts Algernon Austin, David Cooper and Mary Gable.

The study reported that in 2011, state and local governments experienced the worst job decline on record.  Prior to the recession, state and local governments eliminated 765,000 jobs. “Women and African Americans comprised about 70 percent and 20 percent, respectively, of those job losses,” EPI reported.

Blacks have suffered disproportionately from the state and local budget cuts. In 2011, African Americans comprised more than 10.9 percent of the employed and 12.8 percent of state and local public-sector employment.

“They, however, accounted for 19.8 percent of the overall decline in state and local government jobs between 2007 and 2011 among racial groups who lost jobs,” reported EPI." Its report states. “This loss of 177,000 jobs represents a decrease in African Americans' state and local government employment of 7.6 percent, which is the largest percentage change for all racial groups.”