Black Unemployment 69% Higher Than National Figure

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By Douglas A. McIntyre Published
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Black Unemployment 69% Higher Than National Figure

© Drazen Zigic / iStock via Getty Images

The Bureau of Labor Statistics released its August jobs report, officially known as THE EMPLOYMENT SITUATION — AUGUST 2021. It showed that the economy added 235,000 nonfarm payroll jobs, which was below the consensus forecast of economists. It brought into question the pace of the recovery from a COVID-19 which triggered a jump in unemployment. The unemployment rate fell to 5.2%. That is still much higher than the 3.5% figure of February 2020. The jobless level across age groups and races varied considerably. Notably, Black unemployment was 8.8% which is 69% higher than the national average. The Black rate last month in relationship to the national rate was similar to the figures during much of The Great Recession.

Across other demographic groups, unemployment among Whites was 4.5%, so the Black rate is 96% higher than the White rate. The Hispanic jobless rate was 6.4% in August. The rate among Asians was 4.6%. Among adult men, the figure was 5.1%, and among adult women, the figure was 4.8%.

The percentage of Americans working from home was 13.4% . The Census report said: “These data refer to employed persons who teleworked or worked at home for pay at some point in the last 4 weeks specifically because of the pandemic.

The reasons Black Americans have higher jobless rates than whites fall into several categories. The Economic Policy Institute reports that among the primary reasons are “racism” and single adult households where one person tries to care for children and hold a full-time job at the same time.

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The American Progressive reports that the spread between Black and white jobless rates goes back to 1972 when the BLS started to gather monthly employment data. It gives incarceration, the rate of which is higher among Blacks than whites as another reason. “Mass incarceration plays a significant role in the lower labor force participation rate for African American men.” Educational attainment is another reason. Whites tend to graduate both high school and college at a higher rate than Blacks.

None of these reasons can be taken alone according to many experts. They represent a web of problems Black Americans face as they try to enter the workforce. One thing almost all experts agree on is that they will not go away.

Click here to read 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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