The black unemployment rate is rising as overall unemployment falls

After the Department of Labor released its March jobs report, data revealed that the unemployment rate amongst Black Americans had skyrocketed. These numbers, while reflecting the growing variety of unemployed Black Americans since December 2023, haven’t yet reached alarm levels for experts.

Black unemployment is reported to have been 6.4% in March, growth from 5.4% in February. By comparison, the unemployment rate for white Americans was 3.8% in March.

The numbers for black women mirrored the overall increase; their numbers look like driving the overall increase in unemployment amongst Black Americans. The variety of unemployed black women rose to five.6%, a marked increase from the 4.4% unemployment rate recorded in February. Meanwhile, the variety of black men remained stable, although elevated. The variety of black men in March was 6.2%, a slight increase from 6.1% in February.

Elise Gould, senior economist on the Economic Policy Institute, said that while the numbers are troubling, she is not concerned yet. Additionally, she told the web site that unemployment numbers by race and gender can fluctuate from month to month. These numbers represent a ratio of 1.55 to at least one, – in response to data from the Central Statistical Office.

“This is a disturbing trend. I might say it isn’t a priority yet, but I feel we really want to have a look at it in the approaching months. Gould also put the rising numbers into context, adding: “People are looking for more opportunities, but not everyone is getting them and that’s why the unemployment rate is rising.”

In 2022, Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, said in an episode of the “Noel King” podcast that the unemployment gap between black and white Americans persists whatever the broader state of the economy.

“The 2X problem is a persistent, pernicious divide where black Americans face twice the unemployment rate of white Americans, no matter what economy we have – a booming economy or a recession. It is pervasive and harmful and we must address it.”

According to Valerie Wilson, program director of the Economic Policy Institute, lack of employment equality is a problem of racial and economic justice. Wilson said: “There is no other labor market relationship that is as consistent and stable. Employment equity is essential to racial and economic justice because work is essential.”

Wilson added: “It is the ability of people to provide for themselves and their families.”

Economists use a shorthand explanation of what happens to black employees in times of improving economic conditions – “last hired, first fired.”

As Christian Weller, a professor of public policy on the University of Massachusetts, Boston, who studies racial disparities in employment, said: “Discrimination still exists. Employers who may have stereotyped or discriminated against African Americans in the past are more likely to hire, Weller said. “The ratio is decreasing a bit, but you have to squint.”