The country is celebrating the 50th anniversary of Dr King’s speech and the second inauguration of of a Black President. However, for the vast majority of African-Americans, Dr. King’s dream is still far from a reality. In December Black Adult unemployment was 14% and teenage unemployment, 40.5%.
The President and Congress are struggling to find ways to reduce the large number of unemployed workers, especially among African-Americans, and to a lesser extent, Latinos. The solution is easy – provide greater support to minority businesses.
Last month, the economy created a large number of jobs, but black unemployment increased from 13.4% to 14.3%. With the presidential election over, it is time now to address the crushing burden of unemployment among blacks.
The economy continued to grind along slowly and did not show any signs of moving away from its current growth path of 1.5%, neither in an upward nor downward direction. Things not expected to change soon.
The Jobs report for July will be released Friday. The economy turned a bit more negative in July. We expect 100,000 jobs, the unemployment rate to remain the same at 8.2% and the black unemployment to increase.
For the week of June 4, 2012 a summary of key indicators shows that the economy is weakening. The pace of the weaknesses very slow, but it is rather broad. The question is whether it is temporary.
The unemployment rate declined from 8.2% in March to 8.1% in April, but this was mainly caused by a decline in the civilian labor force of 342,000 workers. Otherwise, unemployment may have increased.
Inequality for blacks and Latinos has worsened over time. Whether measured by wealth, income or jobs, the picture is dismal. Blacks and Latinos make up 27% of the workforce and 40% of all unemployed workers.
To reduce the high rate of black unemployment the government should provide more support to black-owned businesses because two out of every three workers employed in those businesses are black.
The burden of unemployment falls heaviest upon blacks and unfortunately, economic growth in important but is not sufficient. Even when US GDP grew at 6.7%, the unemployment rate for blacks averaged 10.6%.