Friday, December 25, 2015

Quick Graph: Monthly Year-to-Year changes in Hourly and Monthly wages


Wage growth finally beat inflation for the first time since the start of recession

Wages are finally picking up.  A comparison of wage from month to prior year month show a growth rate of about 2% for the past year.  It also well above inflation which is close to zero.  By this measure, the recession may finally be over.



Version 2

Sunday, November 22, 2015

A closer look at Black Labor Force Participation from 1972 to 2015

We are going to look at the Labor Force Participation (LFP) rates for Black workers. Historically (slavery does not count) Blacks have had higher participation rates than whites until the 1970s. Now, in 2015 the difference between the Black and White rate is about 1%.  It has not been this small since 1974. 

One of the reason Blacks had a higher LFP rate than whites was the large number of Black women who worked while White women did not.  This changed during the 1970 and 1980 as some discrimination barriers against women were reduced and women, especially white women joined the labor force. 

It has continued to Black women have also benefited from reduced discrimination and stable jobs. Women have benefited from job in education and healthcare that offer good benefits and security as compared to jobs held by men. 

In fact the 2007-2009 recession was called a "Man-cession" since men fared far worse during the down turn.

Finally, during the recession, many older workers who could afford to, retired. 

Below is a chart of Labor Force Participation Rates for Blacks and Whites since 1972.


This chart shows the changes in population versus labor force participation for different groups. For example, during the time period from 1972 to 2015, the population of White Men increased by 60% but only 40% additional White males considered themselves participating in the labor market in the US.

The numbers are still huge: the civilian non-institutional population grew by an additional 36.5 million white men and the labor force by 19.2 million but the growth in the overall participation rate is slower than the growth in the population rate

For Black and White women the trend is positive.  Women joined the labor at a faster rate than their population grew. 

Black men's LFP grew at more than 90% but below the 120% rate of population increase and the 160% LFP increase for Black women. Ideally one would have expected to see higher growth in the participation rates during the time period however almost every

Black men are plagued by the worst economic evils of our society: poor educational opportunities, incarceration, increased competition from immigrant labor, reduced discrimination against women, foreign competition, and geographic isolation. Still a 90% increase is very good.



Overall, the US national Labor Force Participation has been dropping steeply since the recession of 2007(peak is January 2000). 



The gap between Black LFP and White LFP is about 1.1%, a historically low figure.  It has been as high as 3.5% during the recent recession.



During the prime working years(25 to 54), Black labor force participation remains high: about 80%.


Female LFP has risen steadily since 1972. Black women's participation rate remains higher than Whites.This may be due to the different economic circumstances such as general wealth differences, future economic prospects, family situation or better retirement plans,  It may also be due to cultural characteristics such as the expectation that Black women work.


Black Women have worked at rates as high as 5.5% more than White women. Between 1990 and 1995 the participation rates for Back and White women were about the same. Now Black women participate about 4% more than White women.




Wednesday, November 18, 2015

New York Times on H-1B Visa abuse



The New York Time has been slowly awakening to the abuse of the H-1B visa program.  Here is a recent story on Big outsourcing companies abuse of the H-1B lottery system.

The H-1B program along with outsourcing is used by US companies to reduce the cost of IT support by employing lower cost foreign labor. It has had a major effect on IT wages and employment prospects for US workers.

Buying Black for one year: Maggie Anderson



Maggie Anderson's book "Our Black Year" got coverage in the New York Times as a possible method of Black Economic Empowerment.

Sunday, November 1, 2015

An article NY Times describes the "brutal" modern workplace at Amazon

Quality of Life Warning

We have all heard the stories and anecdotes about Amazon over the years.  We have read news reports about conditions at it's warehouses. We have seen Jeff Bezos ignore profits and Wall Street. And we have seen the powerhouse Amazon Web Services has become.

Now the New York Times has a detailed piece on what it's like to actually work at Amazon, which is described here. Quality of Life Warning

Sunday, October 11, 2015

Pew Research releases comprehensive immigration report covering 1965 to 2015 with projections out to 2065



The Pew Reseach centerreleased a comprehensive study of US immigration since 1965.  The study also include projections for different immigrant groups out to 2065. The US immigration system underwent major reform in 1965. The report covers the period 1965 to 2015. 

Here are the highlights:

Immigrants and their descendants account for 72 million in population growth from 1965 to 2015. They are projected to increase the population by an additional 103 million through 2065.

In 2065, 80 million people or about 18% of population will be foreign born.

Also in 2065, an additional 18% of the population will be second generation foreign born

Asians will replace Hispanics as the largest immigrant group by 2055. 

Here is a link to the Pew Research Center web page with the story.


and here is the full study




Poor September job report: Payrolls at 142,000 and US unemployment rate stays at 5.1%

The BLS released it's September 2015 employment report. Non Farm Payroll increased by only 142,000 jobs.  The U-3 Unemployment rate stayed at 5.1%.







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