Black Unemployment 60% Higher Than National Figure

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By Douglas A. McIntyre Published
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Black Unemployment 60% Higher Than National Figure

© Photo by Mario Tama / Getty Images

The U.S. Bureau of Labor Statistics released its “The Employment Situation–April 2020”. Total nonfarm payroll employment rose by 266,000 from March. The jobless rate was 6.1%. At 9.7%, the Black unemployment rate was 60% higher than the national figure.

A great deal of the U.S. employment picture has changed since the pandemic-driven recession took hold in late March and early April 2020. However, the recovery is far from complete. The BLS release added:

Both the unemployment rate, at 6.1 percent, and the number of unemployed persons, at 9.8 million, were little changed in April. These measures are down considerably from their recent highs in April 2020 but remain well above their levels prior to the coronavirus (COVID-19) pandemic (3.5 percent and 5.7 million, respectively, in February 2020).

A total of 9.8 million people were unemployed in April.

The unemployment rate among Whites was 5.3%. Among adult men, the figure was 6.1%. Among adult women, the figure was 5.6%. It was 7.9% among Hispanics and 5.7% among Asians. Among teenagers, the rate was 12.3%.

The figures show that Black unemployment was 83% higher than the number for Whites in April.

Black unemployment has always been higher than the national average. Several theories suggest why the difference between the Black and white jobless rates is so large. None is considered definitive by all experts.

Among the most frequently given reasons for the difference is that anti-discrimination laws are not enforced adequately. While this may be true, it has been difficult to identify, for the most part, among specific employers or in specific industries. That makes enforcement on a wide basis almost impossible.

Much easier to show is the gulf in education. According to The National Center for Education Statistics, there were large gaps in reading and math achievement between Black and white children in grades 4 and 12. Data was taken in 1992 and 2015, and no significant improvement was seen between the two periods. Education is a marker of both the extent to which people are hired and the level of income for those who are employed.

Some of the differences in the level of math and reading achievement may be based on the sums school districts spend on each student. According to EdBuild, in nonwhite districts, the amount is $11,682. In mostly white districts, the figure is $13,908. The total gap nationwide means “nonwhite school districts receive $23 billion less than white districts, despite serving the same number of students.”

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Another major reason for the employment gap is incarceration rates, many experts argue. According to Pew, “In 2017, Blacks represented 12% of the U.S. adult population but 33% of the sentenced prison population. Whites accounted for 64% of adults but 30% of prisoners.” That means there were 1,549 prisoners per 100,000 Black Americans, compared to 272 per 100,000 whites. The data was based on numbers from federal prisons. The hurdles to employment for people who have been in prison are high.

No single theory or piece of research by itself accounts for the difference in Black and white unemployment. However, taken as a body, the research does show that the disadvantages for Black workers are extremely substantial compared to whites. That, in turn, indicates the situation will not change.

Click here to read These Are the Worst Cities for Black Americans

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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