Unemployment gaps: White, Black and Hispanic

Black and Hispanic employment gaps are widening again

One of the more interesting unemployment trends during the 80's, 90's and 00's was the narrowing of the unemployment gap between Blacks and Whites and Hispanics and Whites. Now the gap seems to be widening. Up until the recession, the gap had steadily closed. In 2006, the gap was under one percent (1%) for Hispanics. And in 2007 the gap was smaller than 4% for Blacks.

Now the gap appears to be widening again. In August 2009, the figure was about 6% for Blacks and 4% for Hispanics.

Economists usually explain the reasons for the gap as geographic mismatch, skills mismatch, network mismatch(gotta find a better term) and discrimination.

So, what happened ?? Well in a tight labor market, demand forces employers to be more flexible in accepting workers. But now that things are tight, employers can be more picky and possibly discriminate more.

Any way here are the charts....

Chart of White, Black and Hispanic Unemployment Rate



Chart of Unemployment Rate Gaps