Blackout – Black Unemployment Rate Rises As Overall Rate Falls

 Empty - Ghosts of The Middle Class

Sometimes statistics speak louder than shouts from rooftops. Cheers went up as the March 2011 jobless rate fell from 8.9% to 8.8%. Hold the celebrations unemployment rate for black increased from 15.3% to 15.5%, almost twice the 7.9% of whites.

What is going on in the face of celebrations surrounding the number of jobs being created and an unemployment rate that has dropped to 8.8% from 8.9% the month before, blacks seemed to be left off the party invitation list. Hispanics have little cause to be raising their glasses for a toast as well. The unemployment rate for Hispanics fell from 11.3% to 11.1%, but it is the unemployment rate among blacks that is totally disconnected and going against the tide.

The Bureau of Labor Statistics report lists the rates for blacks, whites, Hispanics and all other groups in the United States. Even inside the black community the pain is unevenly spread. Black women had a drop in their unemployment rate from 13% to 12.5% while black men went from 16.2% to 16.8%.  Let’s not gloss over the gap between black men and black women with a 4.3% more of an unemployment percentage among black men.

Let’s get away from percentages and get into how many people this represents. The tables state that 7,923,000 black women are employed compared to 6,758,000 black men. That means that 1,165,000 more black women have jobs than black men. On the flip side the number of unemployed black women is listed at 1,127,000 versus 1,361,000 black men. There is a quirk in the numbers that show fewer black women have jobs than before. The number of black women that were employed in February was 7,993,000 compared to 7,923,000 which are 70,000 fewer jobs and the jobless rate went down for black women. You may ask how fewer working black women mean a decreased in the unemployment rate, it is because so many gave up looking for work and were not counted in the numbers.

The participation rate for black women went from 63.1% to 62.1% and that caused the rate to decrease even though 70,000 fewer black women had jobs. Black men actually had an increase in the number holding jobs from 6,745,000 to 6,758,000 which is 13,000 more jobs and the jobless rate among black men went up because the participation rate went up from 68.2% to 68.7%. Simply speaking, more black men looked for jobs and the jobless rate went up due to math.

So, what is going on? Blacks don’t seem to be included in this slow recovery and what does it mean for the long term future of the black community. The unemployment rates reported are always lower than reality. What is the rate if part-time and underemployment are factored in. Where are the crisis level emergency outcries, because as we speak, decades of economic gains in the black community are being destroyed?

The Mean Index – Profit Over Jobs In U.S. – Opposite In Europe & Japan

 Empty - Ghosts of the Middle Class

There was a time when recessions caused employers in the United States to figure out ways to keep employees busy in order to keep from losing them. Now laying off workers seems to be the first, not last option for U.S. companies compared to the rest of the world.

In the past when economic downturns would hit, U.S. companies would do everything it could to keep from losing employees. Employees would be assigned cleanup tasks, filing and straightening up the storeroom. It seems that something has dramatically changed in the United States. An article titled “Unlike competition, U.S. values profits over jobs” by Paul Wiseman March 31, 2011 and published on the MSNBC website shows the difference in how some foreign country based companies treat employees in a recession versus United States based firms.

In the United States worker productivity is up as fewer employees are producing more output after companies shed workers during the recession. According to the article that is not the case in Japan and Europe. Productivity actually went down during the height of the recession during 2009 by 3.7 percent in Japan and 2.2 percent in Europe while U.S. productivity growth doubled from 2008 to 2009 and again in 2010. Now that U.S. corporate profits are at record levels, U.S. firms are hiring a pace far lower than businesses in other recovering nations.

It seems that companies in other developed nations kept more of their employees during the downturn, even at the cost of profits and productivity. Something has changed in the United States as employees are not seen as being as valuable as they once were. Downsizing and trimming the workforce seems to be the first strategy to deal with a downturn as opposed to keeping more employees and sacrificing some level of profitability. Earnings per share and bottom line profits have won out over retaining skilled employees throughout a downturn. Pumping every ounce of output from the remaining workers is seen as a better strategy than hiring new employees as profits bounce back, employee morale and well being take a back seat.

I guess the United States is firmly entrenched in the “employee as a unit of labor input” formula as opposed to an individual with respect, responsibility and loyalty if treated well. This should be no surprise when the action that are taking place in some states towards professionals such as teachers and firefighters as they are hammered down into the roles of “just shut up and work.”