The demographics of the unemployed – March 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: 3.1%
- Hispanic: 4.4%
- Black: 5.8%
And by gender:
- Women – 3.1%
- Men – 3.3%
Here are the adjusted rates once you factor in the long-term unemployed, underemployed and marginally attached workers:
- Asians: 5% (lower)
- White: 6.2% (higher)
- Hispanic: 8.8% (higher)
- Black: 11.6% (flat)
Boiling down the demographics of what’s really going on provides additional context for just how good the employment picture is right now. But what’s most instructive this month is to understand why unemployment rates went higher for various demographics. We saw a surge in hiring for women and Asians in February. This led to a new record low unemployment rate for both. Not bad to ring in “International Women’s Day” over the weekend. Meanwhile, there was a slight uptick in the real unemployment rate for Hispanic and White adults as many people continue to re-enter the workforce who’d previously dropped out of the labor market. In other words, those slight upticks are good news for an expanding workforce with greater labor participation.
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.