According to the U.S. Bureau of Labour Statistics, the U.S. unemployment rate fell to 3.4% in the previous month. The unemployment rate not only marked a downshift from 3.5% in comparison to March, but it also tied for the lowest rate since 1969.
Further, unemployment dipped sharply for Black workers, declining to 4.7% in April from 5% in March. Correspondingly, the unemployment rate among Hispanic workers decreased to 4.4% in the previous month as compared to 4.6 in March.
On the other hand, Asian American workers’ unemployment rate held steady at 2.8%, as it did in March.
Valerie Wilson, director of the Economic Policy Institute’s program on race, ethnicity, and the economy, said, “Unemployment rates remain low across the board and historically low for Black workers.”
Moreover, the difference in rates between racial demographic groups is also diminishing, with the overall unemployment rate under 4%, Wilson added.
Fortuitous drivers
In the latest report by the U.S. Bureau of Labour Statistics, a closer look at the labour force participation rate, a measurement of the number of people aspiring to work — exhibits an underlying factor behind the declining unemployment rate for Black workers.
William Spriggs, chief economist to the AFL-CIO, said, “The Black unemployment rate fell for quirky reasons in a way.”
“That’s because the labour force participation rate for Black workers declined in April, dropping to 63% from 64.1% in March,” he added.
However, for Black men, the rate dropped to 67.8% from 70.5% in March.
When that finding is combined with the dropping unemployment rate, it shows that there are unemployed workers who either ceased seeking work or did not find one at that time.
“It’s kind of a weird mixed message, although looking at the longer-term trend, it’s still fairly stable and steady with what we’ve seen in the last several months,” Wilson said.
The rate of Asian Americans who were assessed to be in the labour force in April was predicted to be 64.9%, which was the same as in March. Longer-term trends also showed a modest increase in this rate. However, this exact demographic group’s participation percentage was 64.5% a year earlier.
“This is also a sign of continued job growth as more people enter the labour market,” said Wilson.
Detecting green shoots
With an increase of more than 64,000 jobs — while government positions swelled by 23,000—April’s payrolls report showed huge profits in the health care and social assistance industries.
“Development in those jobs is positive growth for women and people of colour in particular, as they tend to hold administrative positions in the health and public service industries,” Spriggs said.
“The fact that those sectors are doing well and still hiring, that’s good news for issues of equity,” he concluded.
- Published By Team Genuine Reporter