Sarah Travers
In July, a slight decrease was observed in the unemployment rate of Black workers, mirroring the continued robustness of the broader job market.
According to the Labor Department’s announcement on Friday, the rate of joblessness among Black workers dropped to 5.8%, a fall from June’s 6.0% and a decrease from the same period last year. Regarding gender, Black men experienced a drop in their unemployment rate from 5.9% in June to 5.3% in July. Meanwhile, Black women saw their unemployment rate reduce to 5.2%, a slight decrease from the previous month’s 5.4%.
These numbers further affirm the consistent firmness of the overall labour market. In July, the U.S. unemployment rate remained virtually unchanged at 3.5%, just above the lowest recorded since late 1969.
According to Valerie Wilson from the Economic Policy Institute, the robust state of the labour market is evident. “Even with the interest rate increases implemented by the Federal Reserve, we are seeing sustained low levels of unemployment,” she noted.
There was also a minor increase in the labour force participation rate for Black workers, which represents those employed or seeking work, rising to 62.7%.
The unemployment rate for Hispanic workers increased slightly, reaching 4.4% in July from June’s 4.3%. For Hispanic men, the rate increased to 4.0% from 3.8%. However, Hispanic women’s rate decreased to 4.0% from 4.1%.
Wilson, who also leads EPI’s program on race, ethnicity, and the economy, suggested that this modest increase could partially be attributed to elevated unemployment rates across the leisure, hospitality, transportation, utilities, and construction industries. “These patterns appear related to shifts within industries where different groups of workers constitute a larger share of employment,” said Wilson.
In contrast, Asian workers’ unemployment rate significantly dropped from 3.2% in June to 2.3% in July.
However, Wilson underlined that the report revealed a positive trajectory for the labour market, especially as wage growth continues to exhibit strength amidst falling inflation. In July, economists polled by Dow Jones estimated a monthly increase in average hourly earnings of 0.3%, but actual gains amounted to 0.4%.
“Interestingly, inflation is falling quicker than the slowdown in wage growth, which signifies real wages are growing,” Wilson observed.
She pointed out these signs indicate the possibility of a ‘soft landing’ as the Federal Reserve grapples with managing inflation while maintaining a robust labour market.
Despite the recent hikes in interest rates, the U.S. labour market continues to show resilience. The slight decrease in the unemployment rates for Black and Asian workers, alongside the minimal increase for Hispanic workers, reflects nuanced changes in different industries. However, the overall positive trend and the strength in wage growth amidst falling inflation suggest a promising outlook for the American job market.
