The demographics of the unemployed – January 2020
Bottom Line: The demos of the unemployed tell a much more specific story about what's really going on in our labor market. As I do monthly, here are the government reported unemployment rates and my adjusted rate based on ethnicity:
- Asians: 2.5%
- White: 3.2%
- Hispanic: 4.2%
- Black: 5.9%
And by gender:
- Men – 3.1%
- Women – 3.2%
Here are the adjusted rates once you factor in the long-term unemployed, underemployed and marginally attached workers:
- Asians: 4.8% (lower)
- White: 6.1% (lower)
- Hispanic: 8% (record low)
- Black: 11.2% (higher)
Boiling down the demographics of what’s really going on provides additional context for just how good the employment picture is right now – with one little fly in the ointment. The Asian unemployment rate and white unemployment rates both dropping have produced the second lowest unemployment rate in American history for both groups. The most exciting news of the month...the real unemployment rate for Hispanics reached another record low in December. This is the fourth month out of the past year we’ve reached new record low unemployment for Hispanics. The news wasn’t as good for Black adults. After reaching a new record low unemployment rate in October, we’ve had two consecutive months of a slight increase in unemployment rates for Black adults that place us at the third lowest unemployment rate ever for them. Generally speaking, we’re continuing to see the best jobs economy with record opportunity for just about everyone in the workforce. This has the potential to not only bridge income inequality overtime, but also help lower crime and improve local economies in more challenged neighborhoods. Additionally, it has the added benefit of taking families who’d previously counted on government assistance and creating self-reliance and the ability to improve their lives through opportunity.