Gap Between Black and White Unemployment Widens to Pandemic High
Gap Between Black and White Unemployment Widens to Pandemic High
(Bloomberg) -- The gap between Black and White joblessness widened slightly in July, indicating the economic recovery continues to be uneven along racial lines even though labor-market conditions are improving across the board.
The gap, which is now at its widest in the pandemic era, rose to 5.4 percentage points from 5.3 points the prior month, according to data from the Labor Department. The Black unemployment rate continues to be the highest among the largest race groups tracked by the Bureau of Labor Statistics.
The Black unemployment rate fell to 14.6% in July from 15.4% the prior month and a pandemic-era high of 16.8% in May. The White jobless rate fell to 9.2%, below the overall rate of 10.2%, according to monthly data released Friday.
The economic effects of the pandemic have had a disproportionate impact on Americans of color and on women, who have suffered greater job losses than men. The female unemployment rate decreased to 10.5% in July, compared with a drop to 9.4% for men. Before the pandemic, the unemployment rate for women was lower than it was for men.
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The jobless rate was lowest among White men, who saw it fall to 8.3%, and highest among Black men, who saw a decrease to 15.2%. Latina women saw the highest pandemic unemployment rate in April, at 20.2%. In July, 14% of Latina women were unemployed.
Asian and Latino Americans saw the biggest drop in joblessness last month, with both rates dropping by nearly 2 percentage points.
Labor force participation among workers in their peak employment years, or those with a job or actively searching for one aged 25 to 54, fell last month, an indication that some workers are leaving the labor force altogether. The participation rate for prime-age White Americans fell to 81.8%, and for Black Americans fell to 77.2%. White Americans typically experience lower joblessness than other demographics.
The death of George Floyd, an unarmed Black man, earlier this year sparked protests across the U.S. and renewed debate about racial inequality. Federal Reserve officials have highlighted the issue of Black unemployment and economists have called on the central bank to target the rate when making monetary policy decisions.
The data released Friday underscores that the U.S. labor market continues to recover, though slowly. Payrolls increased by 1.76 million in July, beating estimates, as the unemployment rate fell by more than forecast.
©2020 Bloomberg L.P.