Black U-6 Near 25%!!!

Using the broadest measure of unemployment, U-6, and a basic logical computation, nearly a quarter of Blacks in the US want to work and cannot get it. The BLS U-6 measure includes the all unemployed workers, workers who work part time and want full time work, and discouraged workers who would work if offered.

The BLS releases only a U-6 measure for the general population. It does not release a U-6 measure for specific demographic groups. However, computing U-6 for Blacks is straight forward. Historically, the employment situation for Blacks has always been worse then that of the general population. Theirfore, U-6 would also be worse for Blacks than for the general population, if released. So, if we add the difference between the general U-3 and U-6 to the Black unemployment rate, we would logical get a figure that is the minimum U-6 for Blacks. The real Black figure should be higher. Sadly.

Employment numbers drop again; unemployment up

Figure 1. General Unemployment Rate

The Bureau of Labor Statistics released it's monthly unemployment report for June on July 2, 2009. The big news was that non farm payroll employment dropped by 467,000 in June versus 322,000 in May. A 31 percent increases in job loses over the prior month. A sign pointing to a longer and deeper recession.

Figure 2. Non farm payroll

The general employment rose 0.1% to 9.5 while the Black employment rate decreased by 0.2% to 14.7% from 14.9%.

Figure 3. Black unemployment rate

Black Unemployment Rate reaches 14.9%

Black Unemployment Rate reaches 14.9%

The US Bureau of Labor Statistics released it May unemployment report showing the Black unemployment rate was 14.9%. April's Black unemployment rate was 15.0%. The rate has increase by more than 5% over last year. The May 2008 rate was 9.7%. U3, is the most commonly used unemployment measure.

The government also released the more representative U6 rate. U6 is at 16.4% for the whole US population. U6 is the highest it has been in 10 years. U6 measures unemployed workers plus part time workers who want full-time work plus marginally attached (MA) workers. Marginally attached workers have looked for work in the past and are willing to work but are not currently looking. Marginally attached workers include discouraged workers.