Unemployment Know The Truth
In 2018, media headlines heavily focused on the reduction in the Black unemployment rate, often citing how it reached historic lows. In fact, President Trump took to Twitter in January and tweeted, “Somebody please inform Jay-Z that because of my policies, Black Unemployment has just been reported to be at the LOWEST RATE EVER RECORDED!”
Don’t be deceived. Black unemployment rate is not at an all-time low. Beside the unemployment rate is the most unreliable statistic “EVER RECORDED.”
The Department of Labor calculates the unemployment rate based on the number of people who are currently looking for work within a four-week period and compares it to the previous four-week period. Those who have been looking for work beyond the four-week period are no longer included in the calculation. We all know that many people are looking for work far beyond a four-week period.
A better gauge of labor market health is called the Non-Employment Index (NEI). This index does not exclude those who have been looking for employment longer than a four-week period. According to the NEI, the more accurate unemployment rate is 7.8, a 0.1% decline since January 2018.
All that aside, let’s just pretend like the unemployment rate was a reliable statistic. Using the available data, the unemployment rate among Blacks is twice as high as the unemployment rate of whites. Wonder why Jay-Z wasn’t informed about that little detail?
Black unemployment rate doubling the rate of Whites is nothing new. It has been that way for the last forty years.
Click the above link to see an interactive map of the data
Don’t you think that Blacks, being the minority group, should have a lower unemployment rate than the “majority” group? Why has this disparity not been corrected by the so-called pro-equality community? Because the majority have a vested interest in keeping the system in a state that continues to benefit them. They will never unravel the system because unraveling the system would work against their benefits as individuals. For example, White people as a majority have historically opposed or eliminated diversity-increasing programs within jobs. The result is that it leaves minorities susceptible to higher rates of unemployment or underemployment. Rather than fight to amend the existing financial systems, it is wise for marginalized people to spend their energy and resources to create an alternative system in which they have a vested interest.
That said, researchers have determined something that every black person should know. In 2018, institutions, economists, and policy-makers were investigating how to close the racial income and wealth gap. While Trump was boasting about decreasing the Black unemployment rate, scholars from Duke University were busy busting myths about what it takes to close the racial wealth gap. In this powerful report, the scholars explained why achieving higher education, owning a home, buying from other black business owners, saving more money, improving financial literacy, entrepreneurship, and emulating the success of other successful minorities will NOT improve the racial wealth gap.
In the next publication, we’ll discuss underrepresentation and highlight the most lucrative jobs, both present-day and historically, and why there is underrepresentation by minorities amongst these jobs.