The demographics of the unemployed – June 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 based on demographics:
- White: 12.4%(lower)
- Asians: 15%(higher)
- Black: 16.8%(higher)
- Hispanic: 17.6% (lower)
And by gender:
- Men – 11.6% (lower)
- Women – 13.9% (lower)
This paints a picture of demographically where recoveries began with the reopening of the economy. Hispanic and white men and women generally benefited from the reopening of the economy. Asian and black adults did not. It’s an odd dichotomy. Asians typically benefit from having the lowest unemployment rates and highest incomes, while blacks typically have the highest unemployment and lowest incomes. As the job's recovery began, we’re seeing both the highest and lowest ends of the labor market continue to suffer while those in the middle benefited most. It’s likely the Asian explanation comes from a concentration of Asians in the largest cities which remained the most restricted as reopening's began. The concern in mostly black communities may be a longer-term issue of black owned businesses struggling to survive the lockdowns. One month doesn’t make a trend, we’ll know much more about whether these are themes going forward or dislocations during an extraordinary couple of months.