Business

Black Unemployment Rate Headed for Single Digits

Published

10 years ago

January 13, 2015

Valerie Wilson, the director of the Program on Race, Ethnicity, and the Economy (PREE) at Economic Policy Institute. (Freddie Allen/NNPA)

By Freddie Allen
NNPA Senior Washington Correspondent

WASHINGTON (NNPA) – After three consecutive months of the economy adding more than 25,000 jobs, the Black unemployment rate could dip below 10 percent by mid-2015 if current trends continue, says Valerie Wilson, an economist and director of the Program on Race, Ethnicity, and the Economy (PREE) at Economic Policy Institute.

When Wilson analyzed the labor force participate rate, which includes people that currently hold jobs or are looking for work and the employment-population ratio for all workers, she found that Blacks had the biggest increase in both measures from December 2013 to December 2014.

“If the same trends in the labor force participation rate and the decline in the unemployment rate that we saw in 2014 continue into 2015, the Black unemployment rate should get down to the single digits by the middle of this year,” said Wilson.

The Black unemployment rate decreased from 11 percent in November to 10.4 percent in December, and the jobless rate for White workers ticked down 0.1 percent to 4.8 percent in December, according to the latest jobs report by the Labor Department.

The unemployment rate for Black men over 20 years old ticked down from 11.2 percent to 11 percent in December while the unemployment rate for White men fell from 4.6 to 4.4 percent over that period.

The unemployment rate for Black women over 20 years-old slid from 9.5 percent in November to 8.2 percent in December and White women saw their unemployment rate inch down from 4.5 percent to 4.4 percent during the same period.

The Labor Department also revised the number of jobs added in October (261,000) and November (353,000), accounting for an increase of 50,000 jobs.

American workers found jobs in professional and business services, construction, food services and drinking places, health care, and manufacturing in December.

Wilson said that December’s jobs report signals that the prospect of economic recovery in the Black community is pretty strong.

She said, “The African American workforce is benefitting from the job growth that is taking place right now and the longer that continues, the better it’s going to be for those communities.”

Bernard Anderson, a nationally-recognized economist and professor emeritus at the Wharton business school at the University of Pennsylvania in Philadelphia, agreed.

“Despite the fact that Black people have a higher rate of unemployment and lower income, they remain far more committed to the labor market than White workers on average,” said Anderson.

Anderson said that employment is growing more rapidly now than at any time since the recovery began in 2009. Gross domestic product (GDP) grew 5 percent in the third quarter of 2014, yet wages have not increased significantly.

“We have an anomalous situation in the labor market where employment is beginning to rise, but earnings are still relatively flat,” explained Anderson. In fact, average hourly earnings for all employees shed a nickel in December.

Anderson observed that wages increased more rapidly during previous recoveries as the unemployment rate fell.

Lawrence Mishel, the president of the Economic Policy Institute, wrote in a blog post at EPI.org that stagnant wages hurt more than the workers at bottom.

“Since the late 1970s, wages for the bottom 70 percent of earners have been essentially stagnant, and between 2009 and 2013, real wages fell for the entire bottom 90 percent of the wage distribution,” Mishel wrote. “Even wages for the bottom 70 percent of four-year college graduates have been flat since 2000, and wages in most STEM (science, technology, engineering, and math) occupations have grown anemically over the past decade.”

Anderson said that when the labor market tightens the unemployment rate comes down, and employers are forced to compete with each other for available labor. That competition often leads to increased wages.

Unionization also plays a critical role in raising the wages of low- and middle-income earners.

Mishel said that unionization leads to higher wages without harming economic efficiency.

“Collective bargaining also leads to a larger share of corporate income going to wages rather than profits; the fact that corporate profits are at historic highs is a reflection, in part, of the current weakness of collective bargaining and the heightened power of corporate owners and managers,” Mishel wrote at EPI.org.

Even though overall union membership has fallen to record lows, according to a 2012 report on unionization by the Labor Center at the University of California at Berkeley, Black workers were union members at higher rates than non-Black workers in the United States.

“In 2012, 13.1% of all Black workers in the United States were union members; 11.0% of non-Black workers in the United States were union members,” the report said. “Among workers in the largest metropolitan areas, Blacks were 42% more likely to belong to unions compared to non-Blacks.”

Wilson said that if workers don’t feel empowered on the job, it’s difficult to go in to negotiate and demand the pay that they deserve.

She said, “As long as workers feel disenfranchised, barring a sudden boom in the economy that drives wages up, I don’t know that it’s going to happen organically.”

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Oakland Post: Week of December 18 – 24, 2024

The printed Weekly Edition of the Oakland Post: Week of December 18 – 24, 2024

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2 days ago

December 20, 2024

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BWOPA Honors Black Leadership and Legacy at 2024 Ella Hill Hutch Awards Dinner

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills. At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

Published

4 days ago

December 18, 2024

Oakland Post

L-R: BWOPA State Executive Director LaNiece Jones; State Asm. Mia Bonta; BWOPA 2024 Man of The Year/Urban League SFBA CEO Ken Maxey; BWOPA State President Hon. Dezie Woods-Jones; State Senator Lola Smallwood-Cuevas; Rowena Brown, Oakland Councilmember At-Large, Elect; BWOPA State Regional Director Vashone Huff. Courtesy photo.

By Oakland Post Staff

Black Women Organized for Political Action (BWOPA) is a statewide non-profit advocacy and membership organization committed to solving problems affecting Black Californians.

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills.

At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

The evening was hosted by Dr. Shawna Charles, founder of The Charles Communications Group (CCG) headquartered in Los Angeles. Charles served as mistress of ceremonies.

With a track record of elevating voices and empowering communities, Charles’ leadership and insight brought a certain dynamism to the celebration.

“Each year, this event not only celebrates the enduring legacy of our beloved BWOPA founding member, Ella Hill Hutch, but also reaffirms and amplifies our unwavering commitment to building and sustaining Black political power across California,” said Dezie Woods-Jones, BWOPA founding member and State president.

“Ella Hill Hutch’s trailblazing leadership continues to inspire us as we forge ahead, empowering Black women to lead, advocate, and shape a more equitable future for all,” added Woods-Jones.

This year’s event introduced the DWJ Rising Star Award, honoring young leaders like Solano County Board Supervisors-elect Cassandra James, Danielle Motley-Lewis, Naomi Waters and newly elected State Assemblymember elect Rhodesia Ransom (D-Stockton).

According to organizers, the awardees all exemplify “the next generation of changemakers.”

Other awardees included:

Lifetime Achievement Awardees: Congresswoman Barbara Lee (D-CA-12) and Alameda County Supervisor Keith Carson
Man of the Year: Kenneth Maxey, CEO of the Greater SF Bay Area Urban League
President’s Corporate Award: Yvette Radford, Kaiser Permanente
In the Spirit of Ella State and Chapter Awards: Dr. Carolyn Greene, Dr. Marcella K. Smith, Dr. Carolyn Drake, Tinisch Hollins, Jackie Jones, Gloria Burgess Johnson, Tamika L’Ecluse, Ellen Nash, Betty Reid Soskin, and Ay’Anna Moody.

BWOPA also celebrated local champions across its chapters, including leaders in voter education, healthcare, criminal justice reform, and community advocacy.

In a statement, BWOPA said, “Honoring Ella Hill Hutch’s legacy, BWOPA recognizes her pioneering efforts as the first Black woman elected to the San Francisco Board of Supervisors. Her tireless work amplifying underrepresented voices continues to inspire BWOPA’s mission to build Black political power across California.”

“We extend our heartfelt thanks to our members, partners and allies who believe in BWOPA’s vision to invest in building power for Black women’s leadership,” said LaNiece Jones, BWOPA State executive director. “Your support ensures that Black women have a voice at decision-making tables locally, regionally, statewide, and nationally, advancing diversity and equity in leadership spaces.”

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Council of Islamic Relations Applauds Alameda County Decision to Divest $32M from Caterpillar

The divestment from Caterpillar, a company criticized for its human rights abuses globally—including the destruction of Palestinian homes, infrastructure, and agriculture, as well as in the U.S. prison-industrial complex, border militarization, and immigration detention centers—is a significant step in ensuring that Alameda County’s financial resources do not perpetuate harm.

Published

1 week ago

December 14, 2024

Oakland Post

CAIR-SFBA Policy Coordinator Musa Tariq. Courtesy photo.

Special to The Post

The San Francisco Bay Area office of the Council on American-Islamic Relations (CAIR-SFBA), the nation’s largest Muslim civil rights and advocacy organization, this week welcomed the Alameda County Board of Supervisors’ decision to divest $32 million in public funds from Caterpillar and unanimously commit to adopting an ethical investment policy.

The Board’s decision follows months of advocacy by Bay Area Divest!, a coalition of community organizations calling for accountability in public investments.

In November, CAIR welcomed the reported freeze on the delivery of bulldozers to Israel as an “implicit admission” by the Biden Administration that the far-right Netanyahu government is using that equipment in the ethnic cleansing of Gaza.

CAIR-SFBA Policy Coordinator Musa Tariq said:

“This is a historic moment for Alameda County, demonstrating the power of community advocacy and the County’s leadership in ethical governance. The decision to divest from Caterpillar sends a clear message that public funds should not support corporations complicit in human rights violations.”

In addition to divesting from Caterpillar, the Board voted to move forward with developing a comprehensive Ethical Investment Policy, recommended by District 5 Supervisor Keith Carson.

This policy will include criteria to exclude “investments in industries, corporations, or governments that perpetuate harm to communities and the planet,” such as fossil fuel extraction, weapons production, and entities involved in war crimes, apartheid, and other severe human rights violations.

Alameda County has a proud legacy of socially responsible investment. In 1985, the County divested from South Africa to protest apartheid, and in 1996, it barred investments in companies doing business with Burma due to human rights abuses.

“This forward-thinking policy positions Alameda County as a leader in socially responsible investing,” added Tariq. “By committing to craft the policy within 90 days and implement it within six months, the County has set an ambitious and commendable timeline.”

CAIR-SFBA is an office of CAIR, America’s largest Muslim civil liberties and advocacy organization. Its mission is to enhance the understanding of Islam, protect civil rights, promote justice, and empower American Muslims.