Black Unemployment Is 74% Higher Than White

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By Douglas A. McIntyre Published
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Black Unemployment Is 74% Higher Than White

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The Bureau of Labor Statistics (BLS) employment report for January showed that the number of jobs surged by 517,000. That was unexpected. Also, the jobless rate dropped to 3.4%, which is a 50-year low.

When viewed through the lens of race and gender, the figures looked very different. The jobless rate for adult men was 3.2%. For adult women, it was 3.1%. For white Americans, it was 3.1%, while it was 2.8% for Asian Americans and 4.5% for Hispanics.

There is certainly an argument to be made that Black unemployment is near an all-time low, but it is still much higher than the figure for white Americans and may stay there.

Black Americans have higher jobless rates than whites for several reasons. The Economic Policy Institute reports that among the primary reasons are racism and single-adult households in which one person tries to care for children while holding a full-time job.
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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 from high school and college at a higher rate than Black people do.
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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 these problems will not go away.
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A study by 24/7 Wall St. last year shows the deep problems can be further explained at the city level. Among the worst cities for Black Americans: “While no area is free from discrimination or racial disparities, there are a number of U.S. metro areas where the differences are much more stark. In these areas, there are significant gaps in income, poverty, educational attainment, unemployment, and other measures between Black and white residents.”

Based on all these factors, the gulf between Black unemployment and white is unlikely to change.

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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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