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September 13, 2012

Jobless Rate for Black Men Highest of All Major Worker Groups

by Frederick H. Lowe
Black men and black women continue to have the highest unemployment rate among major worker groups, although the overall jobless rate dropped in August, according to the U.S. Bureau of Labor Statistics.

The seasonally adjusted unemployment rate in August for African Americans 20 years old and older was 14.1 percent .This compares with 7.2 percent for whites and 10.2 percent for Hispanics. The unemployment rate for Asians was 5.9 percent, but it was not seasonally adjusted.

The seasonally adjusted jobless rate in August for black men 20 years old and older was 14.3 percent, compared with 14.8 percent in July and 18 percent in August 2011.

For black women 20 years old and older, the jobless rate in August was 12.0 percent, compared with 11.5 percent in July and 13.4 percent in August 2011.

Although there has been a year-over-year improvement in the unemployment rate among African Americans, the numbers are not comparable because of changes made in January by the Bureau of Labor Statistics in calculating joblessness, said Dr. Steven Pitts, labor policy specialist at the University of California, Berkeley Center for Labor Research and Education, publisher of Work in the Black Community.

The Bureau of Labor Statistics calculates joblessness by surveying 60,000 households each month and asking household occupants a number of questions, Pitts said.

Unemployment remains high in the black community due to cutbacks in government jobs, racial discrimination by private- sector employers and because specific industries benefit some ethnic and racial groups more than others.

For example, Pitts noted that there are more Hispanics in the construction industry than there are blacks or whites. And when hiring in construction expands, it benefits Hispanic men.  Construction hiring showed little change between July and August, according to the Bureau of Labor Statistics, but the Hispanic unemployment rate dropped to 10.2 percent in August, from 10.3 percent in July.

Overall, the nation's unemployment rate was 8.1 percent in August, compared with the 8.3 percent in July, according to the Bureau of Labor Statistics.

Below the surface that was not good news.

The unemployment rate’s dip to 8.1 percent reflects a drop in labor force participation, not a strong labor market, reported the Center on Budget and Policy Priorities, a Washington, D.C.-based policy organization that  works at the federal and state levels on fiscal policy and public programs that affect low- and moderate-income families and individuals.

America's nonfarm businesses created 96,000 new jobs in August, compared with 163,000 new jobs in August.  Economists said June to July job figures will have to be revised downward by 43,000 jobs.

Although economists noted the jobs' numbers fell below expectations, the White House said the economy continues to make progress in reducing unemployment.

"The president said we need to continue to build on the progress that we have made, which now amounts to 30 straight months of private sector job creation -- 4.6 million private sector jobs -- steady economic growth, more than half a million manufacturing jobs,"  Jay Carney, the president’s press secretary,  told reporters.

The Center for Budget Policy Priorities, however, called the jobs' report disappointing.

The report shows that despite 30 straight months of private-sector job creation — including 103,000 new private-sector jobs in August — unemployment will likely remain high for the foreseeable future, suggesting policymakers should extend federal unemployment insurance benefits beyond the end of the year.

Employment bureau officials noted that in August, employment rose by 28,000 in food services and bars.  Professional and technical services added 27,000 jobs, including 11,000 in computer systems design and related services and 9,000 jobs in technical consulting services.

Health care added 17,000 jobs and financial services added 11,000 jobs.  Manufacturing, however, lost 15,000 jobs, partly because of an 8,000 jobs decline in motor vehicles and parts.

Employment in mining, logging, construction, retail trade, transportation and warehousing, information and government showed little change.

The average hourly earnings for all employees on private nonfarm payrolls, declined 1 cent to $23.52.

Seasonally adjusted unemployment rate for August 2012

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