Part 2: The demographics of the unemployed for February 5th
Bottom Line: The demos of the unemployed tell a much more instructive 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 demographics:
Asians: 3%
White: 3.5%
Hispanic: 5%
Black: 7.7%
Here are the adjusted rates once you factor in the long-term unemployed, underemployed and marginally attached workers:
Asians: 6%
White: 7%
Hispanic: 10%
Black: 15.4%
The biggest story this month demographically, was that a month after hitting the lowest level of black unemployment on record in December, black unemployment actually increased in January. It's early to know what the exact catalyst might have been (seasonality or economic) but it's obviously not the follow-through we'd have hoped to see. Be mindful that 15%+ of black adults aren't fully unemployed (nor are 10% of Hispanics) but that's the number that are seeking full-time employment and still don't have it. This speaks to the quality of many jobs in majority minority communities and the work that still has to be done to make long-term, meaningful improvement in these areas.
More optimistically we have outstanding economic momentum and tax reform just really starting to kick in this month. In the third part of today's employment story we'll explore how much more money we're making...