Amidst a tight labor market, the unemployment rate for Black workers saw a slight decline in July. According to the Labor Department, Black workers’ jobless rate fell to 5.8%, down from June’s 6.0% and lower than the 6.0% rate observed in the same period last year. Breaking it down further, Black men experienced a decline in unemployment to 5.3% in July from 5.9% in June, while Black women’s jobless rate dropped to 5.2% from 5.4%.
These figures reflect the ongoing tightness in the broader labor market. In contrast, the overall U.S. unemployment rate remained stable at 3.5% in July, just slightly above the lowest level since the late 1960s.
Valerie Wilson, an economist at the Economic Policy Institute, commented on the robustness of the labor market, saying, “It shows that the labor market is strong and in a good place. Even with the interest rate hikes implemented by the Federal Reserve, we continue to see low levels of unemployment.”
For Black workers, the labor force participation rate, which measures employment or active job-seeking individuals, also saw a slight increase to 62.7%.
The unemployment rate for Hispanic workers rose slightly to 4.4% in July from 4.3% in June. Hispanic men experienced a rise in unemployment to 4.0% from 3.8%, while Hispanic women saw a slight decline to 4.0% from 4.1%.
Wilson suggested that the small increase in the unemployment rate for Hispanic workers may be due to higher rates in industries such as leisure, hospitality, transportation, utilities, and construction, where certain demographics are more heavily represented.
In contrast, Asian workers’ unemployment rate decreased significantly, falling to 2.3% in July from 3.2% in June.
Overall, the report indicates positive trends in the labor market, especially as wage growth remains strong despite declining inflation. In July, average hourly earnings increased by 0.4%, surpassing economists’ estimate of 0.3%.
Wilson emphasized the potential for a “soft landing” as the Federal Reserve manages inflation and supports a strong labor market, stating, “We’re actually seeing now that inflation is falling faster than wage growth is slowing, which means that real wages are actually growing.”
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